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International Financial Management: Hedging, Risk Mitigation, and Investment Strategies

Book Title: International Business Strategies: A Comprehensive Guide for Global Leaders

Editors:  Dr. Uzma Tanveer Momin and Dr. Priyanshu Kumar Singh

ISBN: 978-81-991591-5-0

Chapter: 8

DOI: https://doi.org/10.59646/ibs8/441

Author: Dr. Veena Grover

Abstract

International financial management involves the strategic planning, organizing, directing, and controlling of financial activities in multinational enterprises. This chapter explores critical aspects such as hedging techniques, risk mitigation, and investment strategies in global markets. It highlights the challenges posed by currency volatility, political risk, and cross-border capital flows, emphasizing the need for effective financial tools to safeguard firm value. The chapter covers instruments like forwards, futures, options, and swaps, illustrating their roles in managing foreign exchange and interest rate risks. Further, it discusses portfolio diversification and capital budgeting decisions under international uncertainty. Through empirical research and case studies, the chapter underscores best practices for balancing risk and return in multinational financial management. The integration of risk mitigation strategies with investment decision-making provides firms with a competitive edge in navigating the complexities of international markets.

References

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