The various international sources from where funds may be generated are:
(i) Commercial banks: Most of the commercial banks extend foreign currency loans for promoting business opportunities. The loans and services of various types, provided by banks differ from country to country.
(ii) International agencies and development banks: International agencies and Development banks play an important role to promote international trade and business. They provide term loans and grants to promote the development of economically backward areas in the world. International Finance Corporation (IFC), EXIM Bank and Asian Development Bank are the agencies operating at International level to meet the needs of the international finance.
(iii) International capital markets: Modem organisations including multinational companies depend upon sizeable borrowings in rupees as well as -in foreign currencies. Prominent financial instruments used for this purpose are Depositary Receipts.

It is a self-regulatory organization and trade association for participants in the capital markets. It is a financial market or world financial centre where shares, bonds, debentures, currencies, hedge funds, mutual funds and other long-term securities are purchased or sold.

(i) First of all, the company issuing GDRs hands over its to one Domestic Custodian Bank called DCB.
(ii) Then the DCB requests the Overseas Depository Bank (ODB) situated in the Foreign Country for issuing the shares as GDR.
(iii) The ODB converts the shares shown in rupee into GDR which are denominated in US dollar.
(iv) Finally, ODB issues them to the intending investors.

1. GDRs are issued to investors across the country.
2. It is denominated in any acceptable freely convertible currency.
3. GDR is denominated in any Foreign Currency but the underlying shares would be denominated in local currency of the issuer.
4. The holder is entitled to dividend and bonus on the value of shares underlying the GDR.

The features of ADR as follows:
(i) ADR's are denominated only in US dollars.
(ii) They are issued only to investors who are American residents.
(iii) The depository bank should be located in US.

1. Exploiting Natural Resources:
The FDI companies deplete natural resources like water, forest, mines, etc.
As a result such resources are not available for the usage of common man in the host country.
2. Heavy Outflow of capital:
1. Foreign companies take away huge funds in the form of dividend, royalty fees, etc.
2. This causes a huge outflow of capital from the host country.
3. Not Transferring Technology:
1. Some foreign enterprises do not transfer the technology to developing countries.
2. They mostly transfer second hand technology to the host country.
3. They keep the fundamental aspects of technology with the parent company.
4. In such case, host country may not get the advantage of technology transfer and consequent economic development

1. FCCB is issued by an Indian company in foreign currency.
2. It is a convertible debt instrument.
3. It carries interest coupon.
4. It is unsecured.
5. It can be converted into equity or depository receipt after a certain period.

Importance of International finance:
International finance plays a pivotal role in the international trade and in the sphere of exchange of goods and services among the nations. The following points highlight the importance of international finance.
(i) International Finance helps in calculating exchange rates of various currencies of nations and the relative values of each and every nation in terms thereof.
(ii) It helps in comparing the inflation rates and getting an idea about investing in International debt securities.

The foreign direct investments take the following forms:
1. Establishment of a new enterprise in a foreign country.
2. Expansion of existing branch or subsidiary in a foreign country.
3. Acquisition of enterprise located in a foreign country.