International Financial Policies Essay

International Financial Policies determine how firms in internationalistic market work because if respective governments of the countries put restrictions on doing deal, it may be comparatively difficult to trade. One of the most important advantages of international monetary policies is the fact that such(prenominal) policies very much get the backing of the government then international firms find it relatively easy to have access to opposite resources besides availing different types of concessions in duties and taxes.On the other side, due to such international financial policies, international firms may have to work with relatively inefficient organizations due to contractual requirements. Most of the countries often attempt to do work in public owned entities to work with international firms therefore granted the traditional bureaucratic inefficiencies of such public institutions, resources may not be efficiently utilized and firms may not be achieving their strategic o bjectives in real term. Trade AgreementsThe trade look intoments atomic number 18 formed based on the assumptions that the countries attempt to take advantage of their relative comparative advantage. Trade Agreements are often formed between two or more countries to agree together to offer certain trade concessions to each other. Trade agreements are often formed at the government level and countries to the agreement often offer tax concessions, duty rebates, removal of trade quotas etceteraso that trade integration can take place and countries can actually gain ground from the comparative advantages of each other.Trade Agreements have greater influence on the financial causement policies because if favorable, trade agreements can relatively save crew of costs i. e. duty and tax concessions, lower interest rates etc. for the firms therefore they really have to devise policies which can allow them to manage their financial resources in most efficient manner.