International Financial Management

INTERNATIONAL
FINANCIAL
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
a) The success of mergers and acquisitions of Germany-Japan & UK-USA.............................3
2) Possibilities of international harmonisation occurring in the merger and acquisition field. . .4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The meaning International Financial Management can be defined by the term itself. The
management of financial resources in a business environment at an international ground is
known as international financial management. They are absolutely different from the normal
business environments as there are variety of currencies of different countries, political situations
with dissimilarities, markets which are not perfect and a diverse sets of opportunities.
Globalization is what opened the doors of many countries for each other to come up with
international financial management. The vaster progression in the sector of telecommunication
and technologies of transportation had a great increase in accessibility causing regular drop in
prices due to liberalization (Madura, 2011). This project will be dealing with the international
financial management of some of the major mergers and acquisitions in the global economy: UK
& USA, and Germany-Japan.
a) The success of mergers and acquisitions of Germany-Japan & UK-USA
Germany is the largest economy in Europe and the largest European trade partner is no
country other than Japan. The European continent's largest market is the German market. The
advantage of being in such an amazing geographic position has owed the country to be free from
trade obstacles from the side of European Union and Germany has been excellently emerging as
a place for the Japanese to expand their business in Eastern Europe (Bekaert and Hodrick,
2009). A legal system with high reliability and potentially stable along with the presence of an
efficient administration provides the trader there with high degree of security for their
investments. German companies are worldwide known for their efficiently costed products with
high quality. Many of the leading companies have emerged from the market of Germany, mostly,
in the fields of mechanical and electrical engineering, automobile industry and sector of medical
equipments. Here the foreign traders also receives the advantage of excellent human resources as
the effective education system turns to create competent professionals. Japanese products are
also some of the most demanded articles that are hold reputation in the German market. Japanese
products are popular for their intelligent designs, advanced cutting edge technology and
reliability to solutions. The German consumers are attracted towards the products manufactured
by the Japanese companies (Bodie, 2013). These are the major reasons why there are a high