The word "finance" signifies capital in monetary form, that is
in the form of funds lent or borrowed,normally for capital
purposes, through financial markets or financial institutions.
When finance goes international, it is then an international
finance.
Financial market is a place where financial transactions take
place.When a financial transaction takes place between a resident
of a country and a non-resident, it is an international financial
transaction, and the place where the transaction is traded is
called an international financial market.
Normally a financial market consists of foreign exchange
market, money market, bond market and equity market.The last two
markets usually fall into the category of securities market or
capital market.
通常，金融市场包括外汇市场、货币市场、债券市场和股票市场。债
券市场和股票市场又统称为资本市场。
Foreign exchange market deals with the exchanges of different
means of payment.Because the relative values among different
currencies will fluctuate according to economic and political
circumstances of the currencies of the relative countries, foreign
exchange markets provide services for international investors or
financiers such as forward transactions and foreign currency
futures to eliminate such risks.
Most of the savings and investment transfers take place in the
domestic market of a country.However, domestic investors may
purchase foreign securities and may invest in foreign financial
institutions.Strictly speaking,it is a "foreign" financial market.
A significnat aspect of such international transactions is that
all transcations are directly subject to the rules, usance,
institutional arrangements, offcial policy governing foreign
transcations in the respective domestic markets.
The Euromarket, which is defined as a market where financial
instruments traded are denominated in currencies other than the
currency of the country where the market is located.It is, in the
true sense, an external financial market.The important distinction
between the external financial market and the domestic financial
market lies in that Eurocurrecy banking is not subject to domistic
banking regulations. Today the Euromarket has become an
indispensable element of the international financial market.
