What is the difference and connection between the international financial market and the domestic fi

Updated on Financial 2024-06-10
5 answers
  1. Anonymous users2024-02-11

    The main differences between the international financial market and the domestic financial market are:

    1) The realm of market operation is different

    The sphere of activity of the domestic financial market is confined to the territory of a country and the participants of the market are limited to its own residents, while the field of activity of the international financial market transcends national borders and its participants involve residents of foreign or multinational countries.

    2) Inconsistent market business activities:

    The business activities of the domestic financial market generally do not use foreign exchange, nor do they have to be carried out through the foreign exchange market; The business activities of the international financial market inevitably involve foreign exchange trading activities, and they must be carried out through the foreign exchange market, which is one of the central markets of the international financial market.

    3) The degree of market regulation varies

    The domestic financial market must be subject to direct intervention (including implicit intervention) by the monetary authorities, and the operation of the market is largely influenced by administrative power; On the other hand, the developed international financial market is basically not subject to the control of the financial authorities of the host country, and the operation of the market is generally subject to little or no intervention.

    Performance of the linkage between the international financial market and the domestic financial market:

    1) The domestic financial market is the basis for the development of the international financial market

    Some of the world's major international financial markets have developed on the basis of the original domestic financial markets, and the financial institutions, banking systems, and foreign-related businesses in these international financial markets are closely related to the domestic financial markets.

    2) The movement of monetary funds in the domestic financial market and the movement of monetary funds in the international financial market affect each other

    Changes in interest rates in the domestic financial market will affect the changes in interest rates in the international financial market in various ways, and changes in the currency circulation in the domestic financial market will also affect the changes in the exchange rate in the international financial market.

    3) Some large financial institutions in the domestic financial market are also major participants in the operation of the international financial market

    The international financial market is born and developed with the development and expansion of international economic transactions, relying on the development of the domestic financial market, complementing each other and closely linked.

    Refer to international financial markets.

  2. Anonymous users2024-02-10

    International finance: the turnover and movement of money and funds between countries and regions due to economic, political, cultural and other exchanges and connections. It includes the international monetary system, the balance of payments, the foreign exchange market and foreign exchange rate, the exchange rate system and foreign exchange control, international reserves, international financial institutions, international financial markets, international capital flows, international debt, international monetary reform, regional monetary unions, international settlements, international lending, international financial integration, etc.

    International finance is both closely linked and very different from a country's domestic finance. Domestic finance is subject to the financial laws, regulations, and rules of a country, while international finance is subject to the different laws and regulations of each country, as well as international practices and various treaties or agreements formulated through international consultations.

  3. Anonymous users2024-02-09

    Direct financial markets.

    The direct financial market refers to the market formed by the direct financing of both the supply and demand of funds. In the direct financial market, the fundraiser issues debt certificates or certificates of ownership, and the investor contributes to the purchase of these certificates, and the funds are transferred directly from the investor to the fundraiser, without the need to go through a credit intermediary.

    Indirect financial markets.

    The indirect financial market refers to the market formed by banks and other financial institutions as credit intermediaries for financing. In the indirect financial market, the capital supplier first lends the funds to banks and other financial institutions in the form of deposits, and the creditor-debt relationship is formed between the two, and then the banks and other institutions provide the funds to the demander, and then form a creditor-debt relationship with the demander, and through the transmission of credit intermediaries, the funds of the capital supplier are indirectly transferred to the hands of the demander.

    Direct finance is the premise and foundation of indirect finance, and indirect finance is the development of direct finance.

  4. Anonymous users2024-02-08

    1. The content is different:

    The domestic term "finance" refers to two parts. The first part refers to money and banking. It existed during the planned economy period and was the main content of finance at that time.

    The People's Bank of China says that we are engaged in finance, which means that we are engaged in monetary banking. The second part refers to international finance, which studies issues such as the balance of payments and exchange rates.

    The foreign name of finance includes the following two parts. The first part is corporate finance, that is, corporate finance. Under a planned economy, it is known as corporate finance.

    The second part is asset pricing, which is the study of the different financial instruments and their derivatives in the market.

    2. Different fields:

    Domestic finance belongs to the fields of macroeconomics, monetary economics, and international economics.

    When foreign countries say "finance", they must refer to microfinance. In the United States, money, banking, and international finance are usually located in the economics department, while corporate finance and asset pricing are usually located in the management (business) college. There will also be some professors in the Department of Economics who study corporate finance, as this field is closely related to microeconomics, especially property rights and incentive theory.

  5. Anonymous users2024-02-07

    1. The conceptual difference between finance and international finance.

    Finance is the reintegration of existing resources to achieve the equivalent circulation of value and profits, and it is the behavior of people to make optimal allocation decisions of resources across periods in an uncertain environment.

    International finance consists of the balance of payments, international exchange, international settlement, international credit, international investment and international monetary system, which influence and constrain each other.

    2. The difference between finance and international finance.

    International finance is an English major, but some financial courses have been added to the professional curriculum, such as Western economics, finance, international finance, accounting, international **, etc., and the college mathematics is also simple, which belongs to the applied English major.

    Finance is an economics major, and at least three mathematics courses are required: advanced mathematics, linear algebra, probability theory and mathematical statistics, as well as econometrics courses, including economics and finance.

    3. The difference between the core elements of finance and international finance.

    The core of finance is the value exchange across time and space, and all transactions involving the allocation of value or income between different times and different spaces are financial transactions, and finance is the study of why value exchange across time and space appears, how it occurs, and how it develops.

    The core of international finance is the international balance of payments, exchange, settlement, system, etc., which are bound by the different laws and regulations of various countries, as well as the international common practices, and various treaties or agreements formulated through consultations among various countries.

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