Write the difference between domestic finance and international finance.


The major differences between domestic finance and international finance are as follows −

Domestic finance

  • The currency exposure has no impact.

  • It is exposed to same economic and political environments.

  • It is exposed to same tax laws and regulations.

  • Stakeholders are of same beliefs, languages etc.

  • Knowledge of foreign exchange derivatives is not required.

  • Challenges are limited.

  • Maintenance of separate books are not required.

International finance

  • The currency exposure has impact.

  • It is exposed to different economic and political environments.

  • It is exposed to different tax laws and regulations.

  • Stakeholders are of different beliefs, languages etc.

  • Knowledge of foreign exchange derivatives are required.

  • Challenges are limitless.

  • Maintenance of separate books are required as per GAAP/AS.

Updated on: 25-Jul-2020

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