multinational financial management an overview

... Multinational Financial Management    Multinational vs domestic financial management Exchange rates and trading in foreign exchange International money and capital markets 19-1 What is a multinational ... 19-3 What factors distinguish multinational financial management from domestic financial management? Different currency denominations Economic and legal ramifications Language differences Cultural ... across different countries than previously thought 19-26 Impact of multinational operations  Cash management  Distances are greater  Access to more markets for loans and for temporary investments

Ngày tải lên: 17/08/2018, 14:22

... 15 INTERCOMPANY FUND-FLOW MECHANISMS: COSTS AND BENEFITS b Types of Inter-company Loans 1.) Back-to-back loans a ) Often called fronting loan b ) Loan channeled through a bank c ) Loans collateralized ... Multinational Financial Management Alan Shapiro 7th Edition J.Wiley & Sons Power Points by Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 20 MANAGING THE MULTINATIONAL FINANCIAL ... VALUE OF THE MULTINATIONAL FINANCIAL SYSTEM I THE MNC’s DISTINCT VALUE A Allows MNC to arbitrage Tax systems Financial markets Regulatory systems THE VALUE OF THE MULTINATIONAL FINANCIAL SYSTEM

Ngày tải lên: 25/09/2019, 10:00

... FINANCING CHAPTER OVERVIEW I INTERNATIONAL CASH MANAGEMENT II ACCOUNTS RECEIVABLE MANAGEMENT III INVENTORY MANAGEMENT IV SHORT-TERM FINANCING I INTERNATIONAL CASH MANAGEMENT I INTERNATION CASH MANAGEMENT ... Multinational Financial Management Alan Shapiro 7th Edition Power Points by J.Wiley & Sons Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 19 CURRENT ASSET MANAGEMENT AND ... INTERNATIONAL CASH MANAGEMENT Advantages (con’) d Decision making enhanced e Better volume currency quotes f Greater cash management expertise g Less political risk INTERNATIONAL CASH MANAGEMENT D a

Ngày tải lên: 25/09/2019, 10:00

... GOVERNMENT SOURCES OF EXPORT FINANCING IV GOVERNMENT SOURCES OF EXPORT FINANCING AND CREDIT INSURANCE A Export-Import Bank of the U.S -known as Ex-Im Bank -finances and facilitates U.S exports only ... OF EXPORT FINANCING Ex-Im Bank Programs: a Direct loans to exporters b Intermediate loans to exporters c Loan guarantees d Preliminary commitments e Political and commercial insurance 27 GOVERNMENT ... Multinational Financial Management Alan Shapiro 7th Edition J.Wiley & Sons Power Points by Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 18 FINANCING FOREIGN

Ngày tải lên: 25/09/2019, 10:00

... Multinational Financial Management Alan Shapiro 7th Edition Power Points by J.Wiley & Sons Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 17 CAPITAL BUDGETING FOR THE MULTINATIONAL ... POLITICAL RISK ANALYSIS I POLITICAL RISK ANALYSIS A Political risks can be incorporated into an NPV analysis by - adjusting expected project cash flows to reflect the risks 16 POLITICAL RISK ANALYSIS ... political risk C BLOCKED FUNDS 17 IV GROWTH OPTIONS AND PROJECT EVALUATION IV GROWTH OPTIONS AND PROJECT EVALUATION A Options: an important component of many investment decisions ignoring options will

Ngày tải lên: 25/09/2019, 10:00

... Multinational Financial Management Alan Shapiro 7th Edition J.Wiley & Sons Power Points by Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 16 CORPORATE STRATEGY AND FOREIGN ... PROCESS OF OVERSEAS EXPANSION Disadvantages of licensing: a Low cash flow b Quality standards c New competitor II THE THEORY OF THE MULTINATIONAL CORPORATION I THE THEORY OF THE MULTINATIONAL CORPORATION ... OVERSEAS EXPANSION I METHODS TO GO GLOBAL A Exporting: preferred market entry strategy Advantages: low cost low risk learning opportunity THE PROCESS OF OVERSEAS EXPANSION Disadvantages inability

Ngày tải lên: 25/09/2019, 10:00

... Multinational Financial Management Alan Shapiro 7th Edition Power Points by J.Wiley & Sons Joseph F Greco, Ph.D California ... markets have higher risk and return than developed markets c Cross-market correlations have been relatively low THE BENEFITS OF INTERNATIONAL EQUITY INVESTING C Correlations and the Gains From Diversification ... INTERNATIONAL EQUITY INVESTING I THE BENEFITS OF INTERNATIONAL EQUITY INVESTING A Advantages Offers more opportunities than a domestic portfolio only Larger firms often are overseas THE BENEFITS OF INTERNATIONAL

Ngày tải lên: 25/09/2019, 10:00

... Multinational Financial Management Alan Shapiro 7th Edition J.Wiley & Sons Power Points by Joseph F Greco, Ph.D California ... ri)/ 2 rm where THE COST OF EQUITY CAPITAL Cov(rm, ri) is the covariance between asset and market returns and 2 rm , the variance of market returns II THE WEIGHTED AVERAGE COST OF CAPITAL FOR ... local companies? b Which is the relevant base portfolio to use? c Should the market risk premium be based on U.S or local market? 12 DISCOUNT RATES FOR FOREIGN INVESTMENTS local Proxy Companies a

Ngày tải lên: 25/09/2019, 10:00

... Multinational Financial Management Alan Shapiro 7th Edition Power Points by J.Wiley & Sons Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 13 THE EUROMARKETS CHAPTER OVERVIEW: ... loans use variable rates Loans have shorter maturities Bonds have greater volume Loans have greater flexibility Loans obtained faster 14 III NOTE ISSUANCE FACILITIES AND EURONOTES A Note Issuance ... EUROBONDS III.NOTE ISSUANCE FACILITIES AND EURONOTES IV EUOR COMMERCIAL PAPER V THE ASIA CURRENCY MARKETS I THE EUROCURRENCY MARKETS THE EUROMARKETS -the most important international financial markets

Ngày tải lên: 25/09/2019, 10:00

... following an exchange-rate change 34 MANAGING OPERATING EXPOSURE V .Financial Management of Exchange Rate Risk: Financial manager’s Role in Marketing and Production A Provide local manager with ... EXPOSURE IV Planning For Exchange-Rate Changes A With better planning and more competitive options, firms can change strategies substantially B before the impact of an currency change makes itself ... Multinational Financial Management Alan Shapiro 7th Edition J.Wiley & Sons Power Points by Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 11 MEASURING AND MANAGING

Ngày tải lên: 25/09/2019, 10:00

... Multinational Financial Management Alan Shapiro 7th Edition Power Points& bySons J.Wiley Joseph F Greco, Ph.D California State University, Fullerton CHAPTER 12 INTERNATIONAL FINANCING AND ... CORPORATE SOURCES AND USES OF FUNDS C Debt Instruments Used Commercial Bank Loans Bonds a Publicly issued b Privately issued CORPORATE SOURCES AND USES OF FUNDS D Financial Markets v Financial Intermediaries ... INTERNATIONAL FINANCING AND NATIONAL CAPITAL MARKETS CHAPTER OVERVIEW: I CORPORATE SOURCES AND USES OF FUNDS II NATIONAL CAPITAL MARKETS AS INTERNATIONAL FINANCIAL CENTERS III DEVELOPMENT BANKS IV PROJECT

Ngày tải lên: 25/09/2019, 10:00

... CHAPTER OVERVIEW I ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE II.ALTERNATIVE CURRENCY TRANSLATION METHODS III STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.52 CHAPTER OVERVIEW (con’t) IV TRANSACTION ... long term debt 10 MANAGING TRANSACTION EXPOSURE Managing transaction exposure: A transaction exposure arises whenever a company is committed to a foreign currency-denominated transaction Protective ... HEDGING STRATEGY VI MANAGING TRANSLATION EXPOSURE VII MANAGING TRANSACTION EXPOSURE PART I ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE I ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE A Three

Ngày tải lên: 25/09/2019, 10:00

... used to repay the loan 72 Which is more important in financial planning for an MNC, ex ante financing cost or ex post financing cost? a Ex ante financing cost is more important since it is the ... capital management is essentially concerned with: a Short-and long-term financing b Managing receivables c Current assets and current liabilities d Managing payables 64 Traditional cash management analysis ... foreign branch of an MNC and a foreign subsidiary of an MNC are essentially the same d A foreign branch of an MNC is an office of the MNC which is not a separate organization from the MNC, and a...

Ngày tải lên: 14/10/2016, 19:40

... Central Bank now controls the monetary policy of the EMU 26 - 18 The 12 Member Nations of the European Monetary Union Austria Germany Netherlands Belgium Ireland Portugal Finland Italy Spain France ... 13 What is exchange rate risk? Exchange rate risk is the risk that the value of a cash flow in one currency translated from another currency will decline due to a change in exchange rates 26 ...  To avoid political and regulatory obstacles  To reduce risk by diversification 26 - What are the major factors that distinguish multinational from domestic financial management?  Currency...

Ngày tải lên: 06/04/2015, 19:41

... important to study international financial management? How is international financial management different from domestic financial management? What are multinational corporations (MNCs) and what ... low, and there may be problems in maintaining product quality standards 28 Alan C Sharpiro, Multinational Financial Management, 9th edition, Willey & son MULTINATIONAL FINANCIAL MANAGEMENT MULTINATIONAL ... The multinational firm can control the mode and timing of internal financial transfers and thereby maximize global profit • Mode of transfer MNCs have freedom in selecting the financial channels...

Ngày tải lên: 11/01/2016, 15:07

... countries – Banking liquidity and management (factors 3, 4, and 6) • The lack of transparency and monitoring mechanisms encouraged banks to underestimate the credit risk of firms and expand the lending ... spread to other Latin American currency and equity markets – The spread of the financial panic is termed “contagion” • The Philippine peso, the Malaysian ringgit, and Indonesian rupiah all fell in ... neighboring countries, and can cause an innocent country to experience capital flight and a resulting depreciation of its currency) Speculation (can cause a foreign exchange crisis or make an existing crisis...

Ngày tải lên: 11/01/2016, 15:07

... central bank, called the European Central Bank (ECB), was established in Frankfurt, Germany – The ECB is responsible for financial market intervention and the issuance of the euro, and the corresponding ... balances, and economic growth • The choice among different exchange rate regimes may change over time as priorities change • Next I will compare the advantages and disadvantages for the fixed and ... EXCHANGE RATE REGIMES • Float exchange rate regime – Advantages • The change of the exchange rate can adjust the balance of payments automatically • Central banks can maintain the independency about...

Ngày tải lên: 11/01/2016, 15:07

... Current transfers • The change in ownership of real resources or financial items is called a transfer • Any transfer between countries that is one-way–a gift or grant– is termed a current transfer ... capital /financial account in the U.S 4-33 CURRENT AND FINANCIAL ACCOUNT BALANCE RELATIONSHIPS CURRENT AND FINANCIAL ACCOUNT BALANCE RELATIONSHIPS • Since the BOP should balance, it is possible to infer the inverse ... country’s import and export of goods and services are affected by changes in exchange rates • The transmission mechanism is in principle quite simple: changes in exchange rates change relative process...

Ngày tải lên: 11/01/2016, 15:07

... imported and exported goods change as a result of exchange rate changes is termed exchange rate pass-through • Although PPP implies that all exchange rate changes are passed through by equivalent changes ... 6.25%) and appreciates against Japanese ¥ (by 25%) ※ From the analysis of NEERI, overall speaking, the nominal exchange rate of NT$ appreciates by 6.25% against the US$ and Japanese ¥ NOMINAL AND ... exchange rates • Possible reasons for the poor performance of PPP – Transportation costs of goods and services are not zero – Many services are not tradable, e.g., legal services – Many goods and...

Ngày tải lên: 11/01/2016, 15:08

... individuals and banks – Spot exchange rate in the market • Organized Exchanges – similar to the futures market, currency options are traded on an organized exchange floor – The Chicago Mercantile and ... Market – OTC options are most frequently written by banks for US dollars against British pounds, Swiss francs, Japanese yen, Canadian dollars and the euro • Every option has three different price ... low price X1 and buying another call at high strike price X3 B3 BEAR SPREAD CREATED USING CALL OPTION Buying a call one exercise price and selling a call with another strike price and selling...

Ngày tải lên: 11/01/2016, 15:08