International finance

International finance deals with money across borders: exchange rates, currency risk, and raising funds abroad. The core fact is that an exchange rate is a price — the price of one currency in terms of another — and like any price it moves with supply and demand. Worked example: if ₹1,000 buys goods worth $12 today and the rupee weakens so that ₹1,000 buys only $11, imports have become costlier in rupees and an Indian importer must pay more for the same goods.