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What is Local and International Finance definition/concept

Finance studies all activities that have some relationship with capital flows and can refer to a person , a company, a city or a state . At the same time, the financial activity is focused on money management , that is, on how it can be achieved, as well as on its uses, payments and interest associated with cash transactions, etc. Local and International Finance

local finance

Municipalities organize themselves through a budget. In this sense, budgeting means calculating in advance how much money is paid in a municipality through collected taxes and, at the same time, how much money is used to cover the costs of salaries, energy , water, maintenance , infrastructure works and other municipal services.

In order for municipal finances to be properly managed in an annual budget, it is necessary to take as a reference the fulfillment of the previous year’s budget. Local and International Finance

Thus, local finances are based on budgets, which have different stages: formulation, approval, execution, monitoring, evaluation and settlement. Like any state entity, a municipality must have its finances in accordance with all rules and procedures established by law.

Municipal finance incorporates a number of specific areas: accounting, treasury and administration.

international finance

This area studies the money flows used between companies internationally, especially in the field of globalized trade

Currently, finance in a globalized world relies on a series of tools provided by the Internet : the use of social networks, search engines, emails and many other multimedia elements that are shared on a daily basis.

The internationalization of finance fits within a global economy, which means that the protectionist economic model of nations has been replaced by a model open to all. This opening offers a series of advantages for consumers, companies and nations. However, there are also a number of disadvantages, such as the contagion effect of a national economy in other areas. Local and International Finance

International finance deals with the financial (money) management of companies. In this sense, this area is focused on capital flows, financing and possible investments .

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