Intenational Financial Management

THEORETICAL PERSPECTIVE ................................................................................................................................... 4 WHAT IS DIRECT FOREIGN INVESTMENT (DFI)?............................................................................................................... 4 WHY FIRM ENGAGED IN FOREIGN DIRECT INVESTMENT? .................................................................................................... 4 COMPONENTS OF BALANCE OF PAYMENTS: ................................................................................................................... 5 CONCEPTS OF EXCHANGE RATE .................................................................................................................................. 6 Factors that Affect Exchange Rates ................................................................................................................ 7 BALANCE OF PAYMENT ANALYSIS ........................................................................................................................ 11 BANGLADESH’S BOP ............................................................................................................................................. 11 Current Account ........................................................................................................................................... 11 AUSTRALIA’S BOP ................................................................................................................................................ 13 UNITED STATES’ BOP ............................................................................................................................................ 16 CROSS COUNTRY COMPARISON ................................................................................................................................ 19 RELATIONSHIP BETWEEN CURRENT ACCOUNT BALANCE AND CHANGES IN SAVING AND INVESTMENT...