The international financial management in Shell represents the system of the economic decisions arising during the realization of the financial management in the conditions of the internationalization of the economic activity of Shell. The company’s commercial activity will bring more profit in the international market directly or indirectly than in the national market. It is an obligatory condition of the expediency of private business on the international scene.
Except the general financial tasks, the international financial manager has to deal with absolutely specific goals, which he solves regarding international relations. The following points include:
the assessment of the country’s positioning on the international market, the analysis of the state of the balance of payment;
the planning of the financial operations from the point of view of the use of the different currencies in the international payments;
the crediting of the export activity;
the international budgeting of the capital, the motivation of the foreign direct and portfolio investments;
the operations on the euro currency, euro credit and euro bonds market.
The synthesis of the tasks solved by the financial manager and the specific tasks listed above forms the sector of the Shell’s international management. It includes two disciplines: financial management and business activity in the international economic relations (international trade, foreign investments, and international credit).
The financial management connected with the foreign economic activity of Shell is controlled by the condition of its assets in foreign currency and management of all types of currency risks. It is necessary to note that the risk factor role is essentially increased in the international activity of Shell.
The financial manager of Shell should search for the effective financial decisions proceeding from the principle of optimum. He has the following range of the financial tasks, formulation of their decisions and the control of their fulfillment. The main task of the financial manager consists in the assessment of short-term and long-term currency assets and the obligations of the company through the prism of the time and space of the international market.
“Responsibilities of Finance Manager:
• to keep update of significant environmental changes;
•to understand and analyze the complex interrelationships between relevant environmental variables and corporate responses;
• to adapt the finance function to significant changes in firm’s own strategic posture;
• to take stride past failures and mistakes to minimize their adverse impact” (“Role of International Finance Manager”: 2012).
The work of a financial manager includes not only the world of assets, passives, postings and balances. A true professional is obliged to be guided in everything that concerns organization’s activity in which he works, to be interested in economy, policy, and to trace the changes in the legislation and constantly to increase own qualification.
Thus, an international financial manager is a person who plans future cash flows; estimates liquidity and the international investment appeal of Shell, analyzes the condition of the financial currency markets and follows the developments at stock exchanges.
The functional duties of the Shell’s international financial manager are:
- tax and management accounting;
- drawing up of accounting policies of Shell;
- interaction with the supervising organizations;
- investigation of the international …