International finance refers to the study and management of monetary transactions that occur between countries. It involves understanding how currencies are exchanged, how international investments are made, and how global economic policies affect financial markets. Key components include foreign exchange rates, international trade, and cross-border investments. This field also examines the impact of global events on financial systems, such as changes in interest rates, inflation, and political stability. Institutions like the International Monetary Fund (IMF) and the World Bank play crucial roles in facilitating international financial stability and providing support to countries in need.