What is an outcome of effective international financial management?

Effective international financial management aims to optimize a firm's financial resources on a global scale, thereby enabling it to capitalize on different markets and investment opportunities. By managing currency risks, financing strategies, and investment portfolios effectively, businesses can identify and access lucrative markets beyond their domestic borders. This leads to increased investment opportunities, which can potentially enhance profitability and growth.

The other options do not align with the outcomes typically associated with effective international financial management. Increased compliance costs and higher foreign exchange risks can arise from poor management of international finance rather than effective practices. Limited market reach contradicts the essence of international financial management, which aims to expand and diversify a company’s market presence.