chapter01The Investment Setting(国际投资,英文版)

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Chapter 01-The Investment Setting

– σ2 =Σ[HPYi-E(HPY)]2 /n
Chapter 1 The Investment Setting
13
3. Determining Required Rates of Return
The real risk-free rate Factors influencing the nominal risk-free rate Risk premium Risk premium and portfolio theory Fundamental risk versus systematic risk Summary of required rate of return
Chapter 1 The Investment Setting
9
For example
Barber, B. and J. Lyon, 1997, Detecting long-run abnormal stock returns: the empirical power and specification of test statistics, Journal of Financial Economics 43, 341-372.
– Pure time value of money – expected rate of inflation – risk premium
Chapter 1 The Investment Setting
5
2. Measuring Return and Risk
Measuring historical rates of return Computing mean historical returns Computing expected rates of return Measuring the risk of expected rates of return Risk measures for historical returns

(完整版)Chapter1AnOverviewOnInternationalInvestment

Chapter 1 An Overview On International Investment Section 1: The conception and the types of International Investment The conceptionSimply stated, investment is a vehicle into which funds can be placed with the expectation that they will be preserved or will increase in value or will generate positive returns. The term investment can cover a wide range of activities. Idle cash is not an investment, since its value is likely to be eroded by inflation and it fails to provide any type of return. The same cash placed in a bank savings account would be considered as an investment, since the account provides a positive return. The various types of investments can be differentiated on the basis of a few factors, such as option; short or long term; domestic or international.International Investment refers to any economic behaviors through which investors such as TNCs, transnational financial institutions, official and semi-official institutions and individuals invest their assets in countries other than their own with the expectation of positive return. Although international investments cover almost the same varieties of domestic investments, they are extensively regarded more complicated and difficult than domestic ones due to its internationalization.International investment can be divided into many types according to different standards. For example, we have long-run investments and short-run investments according to the period an investment paybackcovers. Official investments and private investments based on investors themselves; according to whether investors own control right in the management of a firm or not, it usually falls into two types; foreign direct investment （FDI）and international indirect investment ( also Foreign Portfolio Equity Investment, abbreviated as FPEI)，FDI and FPEI are the most cited types in both the practice and theoretical study of international investment.FDI and FPEIAccording to the IMF and OECD definitions, FDI reflects the aim of obtaining a lasting interest by a resident entity of one economy (direct investor) in an enterprise that is resident in another economy (the direct investment enterprise).The “lasting interest” implies the existence of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence on the management of the latter.FDI involves both the initial transaction establishing the relationship between the investor and the enterprise and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated. It should be noted that capital transactions which do not give rise to any settlement, e.g. an interchange of shares among affiliated companies, must also be recorded in theBalance of Payments and in the IIP(International Investment Position).The fifth Edition of the IMF’s Balance of Payment Manual defines the owner of 10% or more of a company’s capital as a direct investor. This guideline is not a fast rule, as it acknowledges that smaller percentage may entail a controlling interest in the company (and, conversely, that a share of more than 10% may not signify control).But the IMF recommends using this percentage as the basic dividing line between direct investment and portfolio investment in the form of shareholdings. Thus, when a non-resident who previously had no equity in a resident enterprise purchases 10% or more of the shares of that enterprise from a resident, the price of equity holdings acquired should be recorded as direct investment. From this moment, any further capital transactions between these two companies should be recorded as a direct investment. When a non-resident holds less than 10% of the shares of an enterprise as portfolio investment, and subsequently acquires additional shares resulting in a direct investment (10% of more), only the purchase of additional shares is recorded as direct investment in the Balance of Payments. The holdings that were acquired previously should not be reclassified from portfolio to direct investment in the Balance of Payments but the total holdings should be reclassified in the IIP.The classification of direct investment is based firstly on the direction of investment both for assets or liabilities; secondly, on theinvestment instrument used (shares, loans, etc.); and thirdly on the sector breakdown.As for the direction, it can be looked at it from the home and the host perspectives. From the home one, financing of any type extended by the resident parent company to its nonresident affiliated would be included as direct investment abroad. By contrast, financing of any type extended by non-resident subsidiaries, associates or branches to their resident parent company are classified as a decrease in direct investment abroad, rather than as a foreign direct investment. From the host one, the financing extended by non-resident parent companies to their resident subsidiaries, associates or branches would be recorded, in the country of residence of the affiliated companies, under foreign direct investment, and the financing extended by resident subsidiaries, associates and branches to their non-resident parent company would be classified as a decrease in foreign direct investment rather than as a direct investment abroad. This directional principle does not apply if the parent company and its subsidiaries, associates or branches have cross-holdings in each other’s share capital of more than 10%.As for the instruments, Direct investment capital transactions are made up of three basic components: (i) Equity capital; (ii) Reinvested earnings: (iii) Other direct investment capital: covering the borrowing and lending of funds, including debt securities and trade credits.Section 2: Emerge and development of International Investment Emerged early in the late 18th century, International investment has been developing into the most active driving force in the world economy today. After more than two hundred years, International investments have experienced great changes in many aspects. According to the investment size and the modes, it can be divided into four phases:From the beginning of 19 centuries to before 1914: International investments appeared because production surplus resulted from the second industrial revolution. And the indirect investment dominated in the international investment during that period.1914~1945：a slowly developing period. Due to the two world wars, international investments were held back heavily. The foreign investment value by major investor countries dropped to US $ 38 billion in 1945 when the Second World War ended. Indirect investment was still the mainmode.1945~1979：International investments started to develop again. During this period, international investments increased rapidly, the value from developed countries reaching US$600 billion in 1978 from US$51 billion in 1945. And another obvious feature is that direct investment replaced indirect investment to dominate in international investment. For example, FDI reached US$369.3 billion in 1978, accounting for 61.6% of the total from the US$20.0 billion in 1945. Please see Table 1.1 for detailed increase.Table 1.1 Private Foreign Direct Investment from Main Capitalist countries （Unit: 1 billion US$）since 1980s: a rapid development phase. Technological progress, financial innovations and globalization facilitate international investment both in FDI and indirect investment and the development speed exceeds that of GDP. Please refer to Table 1.2 for the great change. Table 1.3 for the comparison between FDI and some production indices and Table 1.4 for FPEI of developed countries.Table 1.2 International Investments in 1989 and 1999( as per the share in GDP)Source: World Bank, World Development Indicators. 2001Table 1.3 FDI and Related Production Indices (US $1billion, %)Table 1.4 Transnational transactions in Bonds and Stocks by Main DCs (% of GDP)Figure 1.1Global inflows of FDI, 1993-2002, by groups of countries$ billionsFigure 1.2Inflows of FDI to developing countries, 1995-2002, by region发展中国家FDI 分布5010015020025019951996199719981999200020012002Developing countriesAsia and the PacificLatin America/Caribbean ChinaAfricaLDCsInflows of FDI to developing countries, 1995-2002, by region$ billions发展中国家亚太地区拉美加勒比海地区非洲中国The Latest development of International investmentWorld Investment Report 2006 （WIR2006): FDI from Developing and Transition Economies Main Contents1. FDI in 2005 grew for the second consecutive year, and it was a worldwide phenomenon.2. It was spurred by cross-border M & As, with increasing deals also undertaken by collective investment funds3. Most inflows went into services, but the sharpest rise in FDI was in natural resources.4. There has been a significant increase in developing-country firms inthe universe of transnational corporations.5. Liberalization continues, but some protectionist tendencies are also emerging.6. Africa attracted much higher levels of FDI.7. South, East and South-East Asia is still the main magnet for inflows into developing countries，while West Asia received an unprecedented level of inflows.8. Latin America and the Caribbean continued to receive substantial FDI.9. FDI flows to South-East Europe and the Commonwealth of Independent States remained relatively high. while there was an upturn in FDI to developed countries.10. Overall, FDI should continue to grow in the short term.Section 3: Comment on Current International Investments Developing for more than two centuries combined with the effects of globalization and increasingly intensive competition in economy, great changes are taking place in the field of international investment. It becomes easier for investors to reach many investment instruments on the one hand, risks thereof are much more subtle and managerial technologies and skills seem much more important than ever before. So investors must be well informed of everything related and skillful with each investment vehicle as well as skills to manage them. Here are somefeatures of current international investments.1.International investment instruments increased.As economy develops, more and more international investment instruments come out of the horizon in the investment market fore investors to choose. Besides traditional vehicles such as short-term securities, common stock, fixed income securities, we also have options, futures, mutual funds, real estate, annuities, as well as many newly-created financial derivatives. As globalization and world economic integration develop, new vehicles will be increased. Therefore, it is convenient for investors to reach investment vehicles, and international investment will become more knowledge and skill demanded.2.Investment modes and patterns are diversifiedIn 1960s —1970s, private investments were, on the whole, equal with official ones. The 1990s witnessed a sea change in the pattern of international capital flows. In 1990, official sources accounted for more than half of international capital flows to developing countries. In 1991, Privatization accounted for 76 per cent of FDI inflows into Central and Eastern Europe. By 1995 over three-quarters came from private sources. The biggest story was the explosion in portfolio ( equity and debt ) investment, which soared from US$5 to us$61 billion from 1990 to 1995.The mode of investments is changing, from privatization to licensing and joint ventures. FDI predominated in the overall scale relative toindirect investment, but the share of FPEI expands swiftly, and gained and equal importance with FDI soon. This change results from the increasing demand for long-term financing, expanded credit as well as financing internationalized. Another more important reason is the fast increase of securities investment, such as development of securities market, privately held shares or stocks in foreign enterprises, increase of speculative investments and so on. In recent years Non-equity arrangement, such as technology investment, equipment rental and leasing, franchising, management contracts, partnerships, cooperative distribution, and co-contracting projects, has extensively spreaded in developing countries and become important modes of investment there.3.The profile of investors is changingFor years western developed countries have dominated the international investment. The “Triad”（The EU, Japan, the United States ）occupies the major share of global investments at the present and in 1991 its share reached 86%. The profile of investors is changing now. An inspiring fact is that foreign investments from developing countries, especially newly industrialized countries and regions(NICs) have developed rapidly since 1990s, For example, foreign investments from developing countries in 1980-1984 accounted for only 5% of the global total, but they went up to 15% to US$47 billion in 1995, exhibiting an inspiring picture o investment abroad at a high speed, though its absolute share was lowthen.4.Direction of International investment is multipliedThe direction of investment has changed a lot. Instead of flowing among developed countries, a lot of investments take place within various regions or economic Groups, which wer established in 1990s for the benefits of individual country in these areas, such as NAFTA, APEC, and EU. Along with the world economic regionalization and collectivization, FDI flows tend to be regional or collective.Some newly emerging economies with fast and stable growth are the most attractive to foreign investments. For example, 80% of FDI into developing countries were absorbed by 10 fast growing developing Asian, American and European countries or regions, among which inward flows into East and Southeast Asia account for 2/3. Central and Eastern Europe are hot points for investments, too.5.FDI is shifting towards servicesIn recent decades, international investments have been shifted from traditional resource and labor-intensive fields to modern technology-intensive manufacturing and service industries. High technological enterprises, finance, insurance and service are the greatest attractions for international investments. A large share of FDI is shifting towards services industry. For example, service sector accounted for only one-quarter of the world FDI stock in the early 1970s; but in 1990 thisshare was almost half of the world total; and by 2002, it had occupied about 60% to US $4trillion. Over the same period, the share of FDI stock in the primary sector declined from 9% to 6%, and it dropped much more in the manufacturing sector, from 42% to 34%. FDI in services accounted for two thirds of the total FDI inflows on the average during 2001-2001, amounting to approximately US$500 billion.Outward FDI in services continues to be dominated by developed countries, but has become more evenly distributed among them. Developing countries’outward FDI in services began to grow wore visible from the 1990s. Their share in the global outward FDI services stock climbed from 1% in 1990 to 10% in 2002, faster than in other sectors, On the inward side, the distribution of services FDI stock has become relatively balanced, though developed countries still account for the largest share, The faster growth has taken place in Western Europe and the United States, reflecting the fact that most service FDI is market-seeking. Today, developed countries account for an estimated 72% of the inward FDI stock in services, developing economies for 25% and CEE (Central Eastern Europe ) for the balance . In 2002, the United States was the largest host economy in terms of the size of its inward FDI stock in services. With a few exceptions (such as China ), countries that have participated in the FDI boom in services also strengthened their position among home and host countries for all FDI.6.The continuing liberalization of FDI.There were 244 changes in laws and regulations affecting FDI in 2003, 220 of which were in the direction of more liberalization. In that year, 86 bilateral investment treaties (BITs) and 60 double taxation treaties (DTTs) were concluded, bringing the totals to 2265 and 2316, respectively. However, the annual number of new treaties concluded has declined, since the case of BITs in 2002 and that of DTTs in 2000. The attractiveness to FDI shows that economies such as the Czech Republic, Hong Kong and Ireland continued to absorb significant investment even during the FDI recession. In contrast, countries such as Japan, South Africa and Thailand have yet to realize their full potential to attract FDI, according to their rankings on UNCTAD’s Inward FDI potential Index as compared with that on the inward FDI performance index.In short, International investment has become an indispensable force pushing the world economy forward. No matter in what modes it is conducted, how large the size would be, what features it may have, both FDI and FPEI are undoubtedly the most vigorous force driving the world economy forward through intense international competition.。

（完整版）Chapter1AnOverviewOnInternationalInvestment

（完整版）Chapter1AnOverviewOnInternationalInvestment Chapter 1 An Overview On International Investment Section 1: The conception and the types of International Investment The conceptionSimply stated, investment is a vehicle into which funds can be placed with the expectation that they will be preserved or will increase in value or will generate positive returns. The term investment can cover a wide range of activities. Idle cash is not an investment, since its value is likely to be eroded by inflation and it fails to provide any type of return. The same cash placed in a bank savings account would be considered as an investment, since the account provides a positive return. The various types of investments can be differentiated on the basis of a few factors, such as option; short or long term; domestic or international.International Investment refers to any economic behaviors through which investors such as TNCs, transnational financial institutions, official and semi-official institutions and individuals invest their assets in countries other than their own with the expectation of positive return. Although international investments cover almost the same varieties of domestic investments, they are extensively regarded more complicated and difficult than domestic ones due to its internationalization. International investment can be divided into many types according to different standards. For example, we have long-run investments and short-run investments according to the period an investment paybackcovers. Official investments and private investments based on investors themselves; according to whether investors own control right in the management of a firm or not, it usually falls into two types; foreign direct investment （FDI）and international indirect investment ( also Foreign Portfolio Equity Investment, abbreviated as FPEI)，FDI and FPEI are the most cited types in both the practice and theoretical study of international investment.FDI and FPEIAccording to the IMF and OECD definitions, FDI reflects the aim of obtaining a lasting interest by a resident entity of one economy (direct investor) in an enterprise that is resident in another economy (the direct investment enterprise).The “lasting interest” implies the existence of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence on the management of the latter.FDI involves both the initial transaction establishing the relationship between the investor and the enterprise and all subsequent capital transactions between them and among affiliated enterprises, both incorporated and unincorporated. It should be noted that capital transactions which do not give rise to any settlement, e.g. an interchange of shares among affiliated companies, must also be recorded in theBalance of Payments and in the IIP(International Investment Position).The fifth Edition of the IMF’s Balance of Payment Manual defines the owner of 10% or more of a company’s capital as a direct investor. This guideline is not a fast rule, as it acknowledges that smaller percentage may entail a controlling interest in the company (and, conversely, that a share of more than 10% may not signify control).But the IMF recommends using this percentage as the basic dividing line between direct investment and portfolio investment in the form of shareholdings. Thus, when a non-resident who previously had no equity in a resident enterprise purchases 10% or more of the shares of that enterprise from a resident, the price of equity holdings acquired should be recorded as direct investment. From this moment, any further capital transactions between these two companies should be recorded as a direct investment. When a non-resident holds less than 10% of the shares of an enterprise as portfolio investment, and subsequently acquires additional shares resulting in a direct investment (10% of more), only the purchase of additional shares is recorded as direct investment in the Balance of Payments. The holdings that were acquired previously should not be reclassified from portfolio to direct investment in the Balance of Payments but the total holdings should be reclassified in the IIP.The classification of direct investment is based firstly on the direction of investment both for assets or liabilities; secondly, on theinvestment instrument used (shares, loans, etc.); and thirdly on the sector breakdown.As for the direction, it can be looked at it from the home and the host perspectives. From the home one, financing of any type extended by the resident parent company to its nonresident affiliated would be included as direct investment abroad. By contrast, financing of any type extended by non-resident subsidiaries, associates or branches to their resident parentcompany are classified as a decrease in direct investment abroad, rather than as a foreign direct investment. From the host one, the financing extended by non-resident parent companies to their resident subsidiaries, associates or branches would be recorded, in the country of residence of the affiliated companies, under foreign direct investment, and the financing extended by resident subsidiaries, associates and branches to their non-resident parent company would be classified as a decrease in foreign direct investment rather than as a direct investment abroad. This directional principle does not apply if the parent company and its subsidiaries, associates or branches have cross-holdings in each other’s share capital of more than 10%.As for the instruments, Direct investment capital transactions are made up of three basic components: (i) Equity capital; (ii) Reinvested earnings: (iii) Other direct investment capital: covering the borrowing and lending of funds, including debt securities and trade credits.Section 2: Emerge and development of International Investment Emerged early in the late 18th century, International investment has been developing into the most active driving force in the world economy today. After more than two hundred years, International investments have experienced great changes in many aspects. According to the investment size and the modes, it can be divided into four phases:From the beginning of 19 centuries to before 1914: International investments appeared because production surplus resulted from the second industrial revolution. And the indirect investment dominated in the international investment during that period.1914~1945：a slowly developing period. Due to the two world wars, international investments were held back heavily. The foreign investment value by major investor countries dropped to US $ 38 billion in 1945 when the Second World War ended. Indirect investment was still the mainmode.1945~1979：International investments started to develop again. During this period, international investments increased rapidly, the value from developed countries reaching US$600 billion in 1978 from US$51 billion in 1945. And another obvious feature is that direct investment replaced indirect investment to dominate in international investment. For example, FDI reached US$369.3 billion in 1978, accounting for 61.6% of the total from the US$20.0 billion in 1945. Please see Table 1.1 for detailed increase.Table 1.1 Private Foreign Direct Investment from Main Capitalist countries （Unit: 1 billion US$）since 1980s: a rapid development phase. Technological progress, financial innovations and globalization facilitate international investment both in FDI and indirect investment and the development speed exceeds that of GDP. Please refer to Table 1.2 for the great change. Table 1.3 for the comparison between FDI and some production indices and Table 1.4 for FPEI of developed countries.Table 1.2 International Investments in 1989 and 1999( as per the share in GDP)Source: World Bank, World Development Indicators. 2001Table 1.3 FDI and Related Production Indices (US $1billion, %)Table 1.4 Transnational transactions in Bonds and Stocks by Main DCs (% of GDP)Figure 1.1Global inflows of FDI, 1993-2002, by groups of countries$ billionsFigure 1.2Inflows of FDI to developing countries, 1995-2002, by region 发展中国家FDI 分布05010015020025019951996199719981999200020012002Developing countriesAsia and the Pacific Latin America/Caribbean ChinaAfricaLDCsInflows of FDI to developing countries, 1995-2002, by region$ billions发展中国家亚太地区拉美加勒⽐海地区⾮洲中国The Latest development of International investmentWorld Investment Report 2006 （WIR2006): FDI from Developing and Transition EconomiesMain Contents1. FDI in 2005 grew for the second consecutive year, and it was a worldwide phenomenon.2. It was spurred by cross-border M & As, with increasing deals also undertaken by collective investment funds3. Most inflows went into services, but the sharpest rise in FDI was in natural resources.4. There has been a significant increase in developing-country firms inthe universe of transnational corporations.5. Liberalization continues, but some protectionist tendencies are also emerging.6. Africa attracted much higher levels of FDI.7. South, East and South-East Asia is still the main magnet for inflows into developing countries，while West Asia received an unprecedented level of inflows.8. Latin America and the Caribbean continued to receive substantial FDI.9. FDI flows to South-East Europe and the Commonwealth of Independent States remained relatively high. while there was an upturn in FDI to developed countries.10. Overall, FDI should continue to grow in the short term.Section 3: Comment on Current International Investments Developing for more than two centuries combined with the effects of globalization and increasingly intensive competition in economy, great changes are taking place in the field of international investment. It becomes easier for investors to reach many investment instruments on the one hand, risks thereof are much more subtle and managerial technologies and skills seem much more important than ever before. So investors must be well informed of everything related and skillful with each investment vehicle as well as skills to manage them. Here are somefeatures of current international investments.1.International investment instruments increased.As economy develops, more and more international investment instruments come out of the horizon in the investment market fore investors to choose. Besides traditional vehicles such as short-term securities, common stock, fixed income securities, we also have options, futures, mutual funds, real estate, annuities, as well as many newly-created financial derivatives. As globalization and world economic integration develop, new vehicles will be increased. Therefore, it is convenient for investors to reach investment vehicles, and international investment will become more knowledge and skill demanded.2.Investment modes and patterns are diversifiedIn 1960s —1970s, private investments were, on the whole, equal with official ones. The 1990s witnessed a sea change in the pattern of international capital flows. In 1990, official sources accounted for more than half of international capital flows to developing countries. In 1991, Privatization accounted for 76 per cent of FDI inflows into Central and Eastern Europe. By 1995 over three-quarters came from private sources. The biggest story was the explosion in portfolio ( equity and debt ) investment, which soared from US$5 to us$61 billion from 1990 to 1995.The mode of investments is changing, from privatization to licensing and joint ventures. FDI predominated in the overall scale relative toindirect investment, but the share of FPEI expands swiftly, and gained and equal importance with FDI soon. This change results from the increasing demand for long-term financing, expanded credit as well as financing internationalized. Another more important reason is the fast increase of securities investment, such as development of securities market, privately held shares or stocks in foreign enterprises, increase of speculative investments and so on. In recent years Non-equity arrangement, such as technology investment, equipment rental and leasing, franchising, management contracts, partnerships, cooperative distribution, and co-contracting projects, has extensively spreaded in developing countries and become important modes of investment there.3.The profile of investors is changingFor years western developed countries have dominated the international investment. The “Triad”（The EU, Japan, the United States ）occupies the major share of global investments at the present and in 1991 its share reached 86%. The profile of investors is changing now. An inspiring fact is that foreign investments from developing countries, especially newly industrialized countries and regions(NICs) have developed rapidly since 1990s, For example, foreign investments from developing countries in 1980-1984 accounted for only 5% of the global total, but they went up to 15% to US$47 billion in 1995, exhibiting an inspiring picture o investment abroad at a high speed, though its absolute share was lowthen.4.Direction of International investment is multipliedThe direction of investment has changed a lot. Instead of flowing among developed countries, a lot of investments take place within various regions or economic Groups, which wer established in 1990s for the benefits of individual country in these areas, such as NAFTA, APEC, and EU. Along with the world economic regionalization and collectivization, FDI flows tend to be regional or collective.Some newly emerging economies with fast and stable growth are the most attractive to foreign investments. For example, 80% of FDI into developing countries were absorbed by 10 fast growing developing Asian, American and European countries or regions, among which inward flows into East and Southeast Asia account for 2/3. Central and Eastern Europe are hot points for investments, too.5.FDI is shifting towards servicesIn recent decades, international investments have been shifted from traditional resource and labor-intensive fields to modern technology-intensive manufacturing and service industries. High technological enterprises, finance, insurance and service are the greatest attractions for international investments. A large share of FDI is shifting towards services industry. For example, service sector accounted for only one-quarter of the world FDI stock in the early 1970s; but in 1990 thisshare was almost half of the world total; and by 2002, it had occupied about 60% to US $4trillion. Over the same period, the share of FDI stock in the primary sector declined from 9% to 6%, and it dropped much more in the manufacturing sector, from 42% to 34%. FDI in services accounted for two thirds of the total FDI inflows on the average during 2001-2001, amounting to approximately US$500 billion.Outward FDI in services continues to be dominated by developed countries, but has become more evenly distributed among them. Developing countries’outward FDI in services began to grow wore visible from the 1990s. Their share in the global outward FDI services stock climbed from 1% in 1990 to 10% in 2002, faster than in other sectors, On the inward side, thedistribution of services FDI stock has become relatively balanced, though developed countries still account for the largest share, The faster growth has taken place in Western Europe and the United States, reflecting the fact that most service FDI is market-seeking. Today, developed countries account for an estimated 72% of the inward FDI stock in services, developing economies for 25% and CEE (Central Eastern Europe ) for the balance . In 2002, the United States was the largest host economy in terms of the size of its inward FDI stock in services. With a few exceptions (such as China ), countries that have participated in the FDI boom in services also strengthened their position among home and host countries for all FDI.6.The continuing liberalization of FDI.There were 244 changes in laws and regulations affecting FDI in 2003, 220 of which were in the direction of more liberalization. In that year, 86 bilateral investment treaties (BITs) and 60 double taxation treaties (DTTs) were concluded, bringing the totals to 2265 and 2316, respectively. However, the annual number of new treaties concluded has declined, since the case of BITs in 2002 and that of DTTs in 2000. The attractiveness to FDI shows that economies such as the Czech Republic, Hong Kong and Ireland continued to absorb significant investment even during the FDI recession. In contrast, countries such as Japan, South Africa and Thailand have yet to realize their full potential to attract FDI, according to their rankings on UNCTAD’s Inward FDI potential Index as compared with that on the inward FDI performance index.In short, International investment has become an indispensable force pushing the world economy forward. No matter in what modes it is conducted, how large the size would be, what features it may have, both FDI and FPEI are undoubtedly the most vigorous force driving the world economy forward through intense international competition.。

chapter01The Investment Setting(国际投资,英文版)

7
The World’s Bond Market
The World Bond Market, By Regions of the Major Issuers
All other markets 6% U.K. Sterling 3% Euroland 26% U.S. Dollar 50%
Japanese Yen 15%
Global Stock Market Capitalization
Tokyo 13% Asia, Pacific ex. Tokyo 7%
Nasdaq 15%
Europe, Africa, M. East 29% South America 1%
NYSE 32% Rest of N. America 3%
2
Gambling vs. Speculating
Gambling occurs when
– Outcome is determined very quickly (a roll of the dice, for instance) – A source of entertainment – Outcome is not based on an economic endeavor, but, rather, random outcomes – Creates risk without expectation of economic benefit
Francis & Ibbotson Chapter 1: The Investment Setting
5
The World’s Equity Capital
World’s equity capital is concentrated in

The_Investment_Setting(投资分析与投资组合管理)

Standard Deviation is the square root of the variance
n
Pi[Ri -E(Ri )]2
i1
Measuring the Risk of Expected Rates of Return 1.9
Coefficient of variation (CV) a measure of relative variability that indicates risk per unit of return
1.00 0.80 0.60 0.40 0.20 0.00
-30%
-10%
10%
30%
Probability Distributions
Exhibit 1.4
Risky investment with ten possible rates of return
1.00 0.80 0.60 0.40 0.20 0.00
How Do We Measure The Rate Of Return On An Investment ?
People’s willingness to pay the difference for borrowing today and their desire to receive a surplus on their savings give rise to an interest rate referred to as the pure time value of money.
funds.
Measures of Historical Rates of Return
Holding Period Return 1.1
HPR EndinVg alueof Investment BeginninVgalueof Investmen

第一章国际投资概述《国际投资学》PPT课件

国际投资（international investment）是指具有独立决策权的投资主体，包括自然人、政府机构、跨国公司、跨国金融机构等，将其所有的货币资金、实物资产或者其他形式的生产要素，在世界范围内进行资源配置，在投资主体母国之外形成新的实物资产、金融资产、无形资产，并通过跨国流动使原始资产增值的经济行为。
第二节国际投资的分类
国际货币基金组织（International Monetary Fund，IMF）将对外直接投资定义为投资者在本国以外的国家或地区所经营的企业中拥有持续利益的一种投资，其目的在于对该企业的经营管理具有有效的发言权。经济合作与发展组织（Organization for Economic Co⁃operation and Development，OECD）将对外直接投资定义为某一经济体系中的常驻实体被另一个经济体系的常驻企业控制的投资，这反映投资者在国外实体的一种长期关系。
第二节国际投资的分类
国际直接投资的分类
（1）按是否新创立企业划分绿地投资
（green field investment）
是指跨国公司在东道国设立新的企业，形成新的生产能力。
跨国并购
（cross⁃border merger and acquisition）
是指兼并已经存在的外国企业的资产和股权。
第二节国际投资的分类
国际间接投资（international indirect investment）是指以资本增值为目的，以取得利息或股息等为形式，以被投资国的证券为对象的跨国投资，即在国际债券市场购买中长期债券，或在股票市场上购买企业股票的一种投资活动。
国际间接投资的概念
第二节国际投资的分类
第一节国际投资的概念

国际组合投资英语作文

国际组合投资英语作文International Portfolio Investment: A Gateway to DiversificationIn the contemporary financial landscape, international portfolio investment has emerged as a pivotal strategy for investors seeking to expand their financial horizons and mitigate risks. This essay delves into the intricacies of international portfolio investment, its benefits, and the challenges it poses.The Concept of International Portfolio InvestmentInternational portfolio investment involves the allocation of capital across different countries, with the aim of diversifying an investment portfolio. It is a strategic move that allows investors to tap into the growth potential of various economies, thereby spreading risk and enhancing returns.Benefits of International Portfolio Investment1. Diversification: By investing in a range of international markets, investors can reduce the impact of market volatility in a single country on their overall portfolio.2. Access to Growth Opportunities: Different countries offer unique growth opportunities due to varying economic cyclesand development stages.3. Currency Diversification: International investments provide exposure to different currencies, which can be beneficial in hedging against currency risks.4. Risk Reduction: The correlation between different markets can be low, which means that losses in one market may be offset by gains in another.Challenges of International Portfolio Investment1. Political Risk: Investments in foreign countries can be affected by political instability, changes in government policies, and regulatory changes.2. Currency Fluctuations: Exchange rate volatility can significantly impact the value of international investments.3. Information Asymmetry: Investors may find it challenging to access reliable information about foreign markets, leading to potential investment missteps.4. Cultural and Legal Differences: Understanding the cultural and legal nuances of foreign markets is crucial for successful international portfolio investment.Strategies for Effective International Portfolio Investment1. Research and Analysis: Thorough research on the economic, political, and market conditions of the target country isessential.2. Professional Guidance: Consulting with financial advisors who specialize in international investments can provide valuable insights.3. Risk Management: Implementing a robust risk management strategy is crucial to navigate the complexities of international markets.4. Regular Monitoring: Continuous monitoring of the portfolio and the global economic landscape is necessary to make informed decisions.ConclusionInternational portfolio investment offers a myriad of opportunities for investors to diversify their risk and enhance their returns. However, it requires a strategic approach, a deep understanding of international markets, and a commitment to ongoing research and risk management. By embracing the challenges and leveraging the benefits, investors can achieve a more robust and resilient investment portfolio.。

The_Investment_Setting(投资分析与投资组合管理)-PPT文档资料

Computation of Holding Exhibit 1.1
Period Yield for a Portfolio
Stock A B C
Total
# Shares 100,000 200,000 500,000
Begin Price $ 10 $ 20 $ 30
Beginning Mkt. Value $ 1,000,000 $ 4,000,000 $ 15,000,000 $ 20,000,000
n
(Pi )(R i )
i 1
Risk Aversion
The assumption that most investors will choose the least risky alternative, all else being equal and that they will not accept additional risk unless they are compensated in the form of higher return
Determinants of Required Rates of Return
• Time value of money • Expected rate of inflation • Risk involved
Defining an Investment
A current commitment of $ for a period of time in order to derive future payments that will compensate for:
– the time the funds are committed – the expected rate of inflation – uncertainty of future flow of

英文版公司理财chapter-1课件

英文版公司理财chapter-1
6
What is finance?
• Finance can be defined as the art and science of managing money.
• Corporations face two broad financial questions: What investments should the firm make? And how should it pay for those investments? The first question involves spending money; the second involves raising it.
英文版公司理财chapter-1
Shareholders’ Equity
10
• If a project’s value is greater than its required investment, then the project is attractive financially
• The financial manager helps the firm to invest in projects that are worth more than they cost.
2. Cite some of the advantages and disadvantages of organizing a business as a corporation
3. Explain why maximizing market value is the logical financial goal for the corporation
tangible or intangible assets

国际投资学英文版 (1)

Sectors of the U.S. Bond Market
International 14% Other 5%
Federal Govt. 21%
Corporates 24%
Govt. Agency 27% Municipals 9%
Francis & Ibbotson
Chapter 1: The Investment Setting
12
The Bottom Line
In determining whether a gamble, a
speculation or an investment has occurred, it is useful to examine the length of the holding period Even though there are millions of individual investors, their impact on the U.S. equities market is small Institutional investors (such as pension funds, insurance companies, mutual funds) have a much greater impact on the U.S. markets
Global Stock Market Capitalization
Tokyo 13% Asia, Pacific ex. Tokyo 7%
Nasdaq 15%
Europe, Africa, M. East 29% South America 1%
NYSE 32% Rest of N. America 3%
Francis & Ibbotson Chapter 1: The Investment Setting

国际投资PPT4

纵向跨国并购是指两个以上国家处于生产同一或相似产品但又处于不同生产阶段的企业之间的并购。
并购双方一般是原材料供应者或产成品购买者，并购后较易融会在一起
➢ 混合跨国并购(Conglomerate M&A，也称复合并购)
混合跨国并购是指两个以上国家不同行业的企业之间的并购
并购公司和目标公司是否接触
跨国并购的类型
➢ 横ห้องสมุดไป่ตู้跨国并购(Horizontal M&A，也称水平式并购)
横向跨国并购是指两个以上国家生产或销售相同或相似产品的企业之间的并购。
横向并购的目的通常是扩大世界市场份额或增加企业国际竞争力和垄断或寡占实力，进而形成规模经济、内部化交易而导致利润增长。
➢ 纵向跨国并购(Vertical M&A，也称垂直式并购)
财务协同效应理论
➢ 财务协同效应理论认为，并购起因于财务目的，主要是利用企业多余的现金寻求投资机会和降低资本成本。
代理问题与管理者主义
➢ 代理问题与管理者主义，与公司的经营权与所有权相对应，当代理出现故障时，收购即是代理权的竞争，可以降低代理成本。
自由现金流量假说
➢ 自由现金流量假说来源于代理成本理论。自由现金流量即公司正常投资支出后的现金余额，该理论认为，由于股东与经理之间在自由现金流量派发问题上的冲突而产生的代理成本，是造成并购活动的主要原因。
速度经济性由美国企业史学家钱德勒(1999)首先提出。
认为企业的经济效率不仅取决于转换资源的数量，还取决于时间和速度。
跨国并购可以迅速获得目标公司的生产能力、销售渠道、研发能力等资源，防止东道国原有厂商的报复，对后期进入的其他跨国公司构成威胁，与新建相比风险小得多。

国际项目投资计划书

国际项目投资计划书下载温馨提示：该文档是我店铺精心编制而成，希望大家下载以后，能够帮助大家解决实际的问题。

文档下载后可定制随意修改，请根据实际需要进行相应的调整和使用，谢谢!并且，本店铺为大家提供各种各样类型的实用资料，如教育随笔、日记赏析、句子摘抄、古诗大全、经典美文、话题作文、工作总结、词语解析、文案摘录、其他资料等等，如想了解不同资料格式和写法，敬请关注!Download tips: This document is carefully compiled by the editor. I hope that after you download them, they can help yousolve practical problems. The document can be customized and modified after downloading, please adjust and use it according to actual needs, thank you!In addition, our shop provides you with various types of practical materials, such as educational essays, diary appreciation, sentence excerpts, ancient poems, classic articles, topic composition, work summary, word parsing, copy excerpts,other materials and so on, want to know different data formats and writing methods, please pay attention!中国作为世界第二大经济体，拥有庞大的外汇储备和发展速度飞快的国内市场，吸引着越来越多的国际投资者前来投资。

国际财务管理 fin mana1

Residential real estate is one of the larger investments made by U.S. citizens. However, this may change in the future.
Francis & Ibbotson
Chapter 1: The Investment Setting
Francis & Ibbotson
Chapter 1: The Investment Setting
4
Gambling vs. Speculating

Gambling occurs when Outcome is determined very quickly (a roll of the dice, for instance) A source of entertainment Outcome is not based on an economic endeavor, but, rather, random outcomes Creates risk without expectation of economic benefit Speculation occurs when An asset is purchased with hope that price will rise rapidly, leading to quick profit Not based on random outcomes
Chapter 1: The Investment Setting
8
The World‟s Bond Market
The World Bond Market, Measured by the Issuing Sectors

chapter01The Investment Setting(国际投资,英文版)

最新Investments chapter 1~5精品资料

Chapter 01-The Investment Setting

(完整版)Chapter1AnOverviewOnInternationalInvestment

（完整版）Chapter1AnOverviewOnInternationalInvestment

chapter01The Investment Setting(国际投资,英文版)

The_Investment_Setting(投资分析与投资组合管理)

第一章 国际投资概述 《国际投资学》PPT课件

国际组合投资英语作文

The_Investment_Setting(投资分析与投资组合管理)-PPT文档资料

英文版公司理财chapter-1课件

国际投资学英文版 (1)

国际投资PPT4

国际项目投资计划书

国际财务管理 fin mana1

第一章国际投资概述《国际投资学》PPT课件