INTERNATIONAL FINANCIAL MARKETING
International Financial Marketing is any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade.
Some financial markets only allow participants that meet certain criteria, which can be based on factors like the amount of money held, the investor’s geographical location, knowledge of the markets or the profession of the participant. Information transparency is important to increase the confidence of participants and therefore foster an efficient financial marketplace.
Reasons for using International Financial Marketing
The markets for real or financial assets are prevented from complete integration by barriers such as tax differentials, tariffs, quotas, labor immobility, communication costs, cultural differences, and financial reporting differences. Barriers can also create unique opportunities for specific geographic markets that will attract foreign investors Investors invest in foreign markets:
To take advantage of favorable economic conditions; when they expect foreign currencies to appreciate against their own; and To reap the benefits of international diversification.
Creditors provide credit in foreign markets: To capitalize on higher foreign interest rates; When they expect foreign currencies to appreciate against their own
Borrowers borrow in foreign markets: To capitalize on lower foreign interest rates When they expect foreign currencies to depreciate against the ir own
Types of International Financial Markets
Foreign exchange market Eurocurrency market International Money market International bond market
International stock markets
FOREIGN EXCHANGE MARKET
The foreign exchange market provides the physical...