All the major economic functions-consumption, production and investment-are highly globalized. Hence it is essential for financial managers to fully understand vital international dimensions of financial management. Proper management of international finances can help the organization in achieving same efficiency and effectiveness in all markets. Hence without IFM, sustaining in the market can be difficult.

Six aspects provide importance to IFM

  • Specialization of some goods and services
  • Opening of new economies
  • Globalization of firms
  • Emergence of new form of business
  • Growth of world trade
  • Development process of Nations