In some way or the other, the world is shrinking and becoming a single gigantic complex organism with highly interdependent molecules. Telecommunications and hi-tech transport have played a pivotal role and the phenomenal growth in international exchange of goods, services, technology, and finance has knit the national economic into a vast network of economic relationships. No nation today can dare to think of itself as an economic entity unto itself.

Post World War II has seen tremendous transformation in every aspect viz. political, socio-economical, and cultural. Enormous growth witnessed in the volume of international trade has led to the removal of obstacles to the free flow of goods and services across nations. The pros and cons of free trade has been debated often with no positive outcome.

Such an enormous growth in international trade and investment would not have been possible without simultaneous growth and increased sophistication of the international monetary and financial system. Adequate growth in international reserves i.e. means of payment in international transactions, an elaborate network of banks and other financial institutions to provide credit, guarantees and insurance, an efficient mechanism for dealing with short term imbalances are all prerequisites for a healthy growth in trade. A number of significant innovations have taken place in the international payments and credit mechanisms, which have facilitated the free exchange of goods and services. Any company, which wishes to participate in trade on a significant scale, must master the intricacies of international financial system.

This directly or indirectly affects the common man. To understand and appreciate the subject better let's creep in to the jungle of High Finance. The sections here try to elucidate the rudiments embedded and interlaced with this highly complex phenomenon.