A Multi-Criteria Decision Making Approach to International Finance Using the MOORA Method

International finance focuses on dealing with financial activities that span national borders, including areas such as exchange rate valuation, international investments, capital movements between countries, and risk analysis. As global markets become more complex, the need for reliable decision-making tools to assess various conflicting financial components becomes increasingly important. The MOORA methodology provides a systematic and quantitative framework for comparing various international financial alternatives based on multiple criteria, such as exchange rate stability, interest rates, balance of payments, and sovereign debt ratings. By normalizing data and assessing favorable and unfavorable criteria, MOORA simplifies complex financial comparisons and helps identify the most favorable investment or policy option. The method ensures consistency and objectivity, making it suitable for assessing countries, financial instruments, or investment opportunities on a global scale. This paper demonstrates how MOORA can be effectively used to rank alternatives such as different countries or financial strategies based on their financial stability and investment potential. International finance involves a variety of factors, such as exchange rates, interest rates, political risks, and economic stability, which must be assessed simultaneously to make informed choices. Traditional decision-making approaches may fail when dealing with such diverse and conflicting criteria. The use of the MOORA method allows for a structured and objective comparison of international financial alternatives. Its ability to process multiple variables and distinguish between favorable and unfavorable criteria makes it very useful for assessing global investment goals, currency performance, or financial strategies. This research contributes to financial decision science by demonstrating how a multi-criteria decision-making tool such as MOORA can improve clarity, reduce bias, and enhance strategic financial planning in international contexts. It provides valuable insights for policymakers, investors, and financial analysts operating in an increasingly interconnected global economy. The process begins by selecting relevant financial alternatives – such as countries or investment options – and identifying a number of evaluation criteria, including exchange rate stability, interest rates, balance of payments, and sovereign credit ratings. The next step involves normalizing the data to bring all values to a common scale, eliminating the effects of different units. After normalization, the criteria are classified as beneficial (to be increased) or unbeneficial (to be decreased). For each alternative, a net score is calculated by subtracting the non-beneficial values from the total beneficial values. Based on these scores, the alternatives are ranked, allowing for transparent and objective comparison. This approach supports organized, data-informed decision-making in the international finance industry. C1- Exchange rate stability – This parameter measures how smoothly a country’s currency performs against major global currencies. A stable exchange rate reduces the risk of currency losses in international transactions and investments. C2- Interest rate (%) – Interest rates directly affect borrowing costs and investment returns. C3- Balance of Payments (BoP) position – This reflects the net flow of money into or out of a country. A positive BoP indicates a healthy international financial position, making the country more attractive to investors. C4-Sovereign Credit Rating – Issued by global rating agencies, it assesses a country’s creditworthiness. Higher ratings suggest lower risk to international lenders and investors. The results ranked Segeroon as the most favorable option (rank 1), followed by Setasht (rank 2), Saban (rank 3), Sarab (rank 4), and Safar (rank 5), indicating their relative financial strength.