International financial decisions are never easy to make. This is majorly because of the various that bring a lot of uncertain elements in the decision making process. In most case, the issue of contention in international finance is majorly uncertainties in future exchange differences. This is explained in the case study that follows. In this example, the company is torn between accepting a sure amount of money from a bank, and awaiting the outcome of a risky and unsure income.
This paper seeks to unravel the element of uncertainty in this decision. This will be done by an analysis