International finance refers to the study and management of monetary transactions that occur between countries. It involves understanding how currencies exchange, the impact of interest rates, and the flow of capital across borders. This field is crucial for businesses and governments as they engage in trade, investment, and economic policy on a global scale. Key components of international finance include foreign exchange markets, international banking, and global financial institutions like the International Monetary Fund (IMF) and the World Bank. These entities help stabilize economies, provide loans, and facilitate international trade, ensuring that countries can effectively manage their financial relationships.