Importance of International Financial Management for Unilever

International Financial
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Critically examine and assess the importance of international financial management (IFM)
to Unilever..............................................................................................................................1
2. Examine and evaluate the dividend distribution policy of Unilever as a multinational
organisation............................................................................................................................2
Dividend Distribution Policy of Unilever..............................................................................2
Irrelevance and relevance theory of dividend Policy.............................................................3
3. Critically examine the efficient market hypothesis theory for the operations of Unilever as
an organisation........................................................................................................................3
4. Effectively study and evaluate Unilever's methods of appraising projects. ......................4
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................6

INTRODUCTION
International financial management which is likewise referred as international finance
involves the management and control of the finances in the international business environment
which trades and exchanges money with the help of exchanging the foreign fiscal currencies. The
primary focus of this report is based on critically analysing the importance and effectiveness of
international financial management as a concept (Biersteker, 2019). It will also explain the
dividend distribution policies in today's environment based on the global organisation Unilever
and how this concept assisted the company to grow and expand its reach in the international
markets.
MAIN BODY
1. Critically examine and assess the importance of international financial management (IFM) to
Unilever.
Unilever Plc is a multinational consumer goods organization that supplies fast moving
consumer goods. Its product collection include savoury, dressings and spread; ice cream and
beverages; personal care, and home care. In context of Unilever, International financial
management plays a very crucial and critical role to assist the organisation establish in several
different countries to expand its working. International financial management assist the
organisation of Unilever in maximisation of shareholders wealth as well as creating well defined
opportunities even for the company stakeholders. As the proper management of international
finances helps the company to attain for a stable and development opportunities environment in
the markets all over the world. It helps to generate effectiveness and efficiency which assists the
company to sustain in a better way in the foreign markets. Unilever as an organisation is driven
to invest capital in foreign countries for acquiring the necessary raw materials that are required
for production purposes (Dzhusov and et.al., 2019). It also want to diversify the market
opportunities and Earn high returns from the investments made with the crucial factor of cheap
labour in foreign countries. The major reason which influences companies like Unilever for
capital investments outside the country is the fact that they are able to produce their products
more effectively as compared to their domestic nations.
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