Lecture International marketing: Strategy and theory - Chapter 18: Financial strategies: Financing and currencies

The purpose of this chapter is to discuss the various aspects of financing. The chapter covers both the local and international sources of financing that are available to public and private buyers, including the various private and nonprofit financial institutions.The chapter also examines such offshore financial centers as the Euromarket and the Asian Dollar Market.

Chapter 18 Financial Strategies: Financing and Currencies Chapter Outline  Nonfinancial Institutions - Self Financing and Debt Financing - Equity Financing  Financial Institutions  Government Agencies     Chapter Outline  International Financial Institutions/Development Banks – – – – – World Bank International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Centre for Settlement of Investment Disputes (ICSID)  IMF (International Monetary Fund)     Chapter Outline  Money  Foreign Exchange  Foreign Exchange Market  Foreign Exchange Rate - Currency Equilibrium - Effect of Devaluation     Chapter Outline    Exchange-Rate Systems Gold Standard Par Value (Adjustable Peg) Crawling Peg (Sliding or Gliding Parity) Wide Band Floating (Flexible) System Official Classification of Exchange Rate Regimes Evaluation of Floating Rates     Chapter Outline  Financial - Implications and Strategies Early Warning Systems Hedging Leading and Lagging Invoicing Pass-Through Costs Other Strategies     Self Financing and Debt Financing  own capital  withholding of dividends  trade credit  joint venture partners  borrowing from affiliated firms and employee retirement fund  issuing commercial paper or bonds     Equity Financing  Selling Stock  Venture Capital     Financial Institutions  Factoring Houses  Forfaiting  Banks     Government Agencies  Concessionary Financing  Mixed/Blended Credit     International Financial Institutions/ Development Banks  World Bank (IBRD)  International Development Association (IDA)  International Finance Corporation (IFC)  Multilateral Investment Guarantee Agency (MIGA)  International Centre for Settlement of Investment Disputes (ICSID)     Money  Hard (International) Currencies vs Soft Currencies  Functions of Currency - medium of exchange - unit of account - store of value     Foreign Exchange Market  Credit (Financing)  Clearing  Hedging  Spot Market vs Forward Market     Foreign Exchange Rate  Currency Equilibrium  Effect of Devaluation - Exports and Employment - Imports and Consumer Welfare     Exchange Rate Systems  Gold Standard  Par Value (Adjustable Peg)  Crawling Peg (Sliding or Gliding Parity)  Wide Band  Floating (Flexible) System     Official Classification of Exchange Rate Regimes    - Floating Exchange Rate Regimes independently floating regimes managed floating regimes Intermediate Exchange Rate Regimes soft pegs tightly managed floating regimes Hard Peg Regimes currency boards exchange rate regimes with no separate legal tender     Financial Implications and Strategies  Early Warning Systems  Hedging  Leading and Lagging  Invoicing  Pass-Through Costs  Other Strategies     .. .Chapter Outline  Nonfinancial Institutions - Self Financing and Debt Financing - Equity Financing  Financial Institutions  Government Agencies     Chapter Outline  International Financial. ..     Chapter Outline  Financial - Implications and Strategies Early Warning Systems Hedging Leading and Lagging Invoicing Pass-Through Costs Other Strategies     Self Financing and Debt Financing. .. (MIGA)  International Centre for Settlement of Investment Disputes (ICSID)     Money  Hard (International) Currencies vs Soft Currencies  Functions of Currency - medium of exchange - unit of