跨国财务管理概述(ppt 56页)
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3
Course Overview
Foreign Investment Decisions
International Capital
Budgeting
Globalization
Synthesis
Sourcing Capital in
Global Markets
Multinational Cash
Management
Sovereign governments have the right to regulate the movement of goods, capital, and people across their borders. These laws sometimes change in unexpected ways.
– It is a new field of modern times corporation financial management.
– To provide a framework for making corporate financial decisions in an international context.
Nestléused to issue two different classes of common stock bearer shares and registered shares.
Foreigners were only allowed to buy bearer shares. Swiss citizens could buy registered shares. The bearer stock was more expensive.
oil
Saudi Arabia
TV sets
Japan
automobiles Germany
garments
China
shoes
Indonesia
pasta
Italy
The risk that foreign currency profits may evaporate in dollar terms due to unanticipated unfavorable exchange rate movements.
– Suppose $1 = ¥100 and you buy 10 shares of Toyota at ¥1,000 per share.
2. How can you get a job in the previous corporations?
1
Course Materials
– Eun and Resnick, 2010, International Financial Management, China Machine Press, 5th Edition (4rd Edition OK)
international finance. • Distinguish international finance from
domestic finance.
6
Outline
• What’s multinational finance？ • What’s Special about multinational Finance? • Why do we need to study financial
11
What’s Special about International Finance?
2.3 Market Imperfections
– Legal restrictions on movement of goods, people, and money
– Transactions costs – Shipping costs – Discrimination taxation
management of multinational firm? • Goals for International Financial Management • Globalization of the World Economy • Multinational Corporations
7
Key words
The Example of Nestlé’s Market
Imperfection
Following this, the price spread between the two types of shares narrowed dramatically.
This implies that there was a major transfer of wealth from foreign shareholders to Swiss shareholders.
SF
12,000
10,000 8,000 6,000
Bearer share
4,000 2,000
Registered share
0
11
20
31
9
18 24
Source: Financial Times, November 26, 1988 p.1. Adapted with permission.
• Multinational finance is concerned with financial management in an international setting.
9
2. What’s Special about multinational Finance?
2.1 Foreign Exchange Risk
What’s Special about multinational Finance?
2.4 Expanded Opportunity Set
When firms or individual investors venture into the arena of global markets , they can benefit from an expanded opportunity set.
4
Requirements and Grading
– Class participation and Cases (20%) – Final Exam (80%)
5
Chapter 1 Globalization & the Multinational Firm
Chapter objectives: • Understand why it is important to study
Firms can locate production in any country or region of the world to maximize their performance and raise funds in any capital market where the cost of capital is the lowest. In addition, firms can gain from greater economies of scale when their tangible and intangible assets are deployed on a global basis.
• Foreign exchange risk
外汇风险
• Political risk
政治风险
• Market impeded opportunity set
扩大的市场机遇
• Multinational corporation (MNC) 跨国公司
8
1. What’s multinational finance？
– Resources and Readings in International Finance: International Finance Resources: Yahoo Finance Readings in International Finance: The Economist
2
Course Objective
Market Imperfections represent various friction and impediments preventing markets from functioning perfectly.
12
The Example of Nestlé’s Market Imperfection
– One year later the investment is worth ten percent more in yen: ¥11,000
– But, if the yen has depreciated to $1 = ¥120, your investment has actually lost money in dollar terms.
1. It can be well-known that economic integration sweeps all over the world, corporate internationalization is the foregone conclusion of economic integration.
• Financial management is mainly concerned with how to optimally make various corporate financial decisions, such as those pertaining to investment, financing, dividend policy,and working capital management, with a view to achieving a set of given corporate objectives.
Foreigners holding Nestlébearer shares were exposed to political risk in a country that is widely viewed as a haven from such risk.
The Nestléepisode illustrates both the importance of considering market imperfections and the peril of political risk.
On November 18, 1988, Nestlélifted restrictions imposed on foreigners, allowing them to hold registered shares as well as bearer shares.
Nestlé’s Foreign Ownership Restrictions
16
3. Why do we need to study financial management of multinational firm?
• Highly globalized and integrated world economy. – Consumption – Production – Investment
10
What’s Special about multinational Finance?
2.2 Political Risk
Political risk ranges from unexpected changes in tax rules to outright expropriation of assets held by foreigners.
• It is thus essential for financial managers to fully understand vital international dimensions of financial management.
17
American consumers
import
export
Course Overview
Foreign Investment Decisions
International Capital
Budgeting
Globalization
Synthesis
Sourcing Capital in
Global Markets
Multinational Cash
Management
Sovereign governments have the right to regulate the movement of goods, capital, and people across their borders. These laws sometimes change in unexpected ways.
– It is a new field of modern times corporation financial management.
– To provide a framework for making corporate financial decisions in an international context.
Nestléused to issue two different classes of common stock bearer shares and registered shares.
Foreigners were only allowed to buy bearer shares. Swiss citizens could buy registered shares. The bearer stock was more expensive.
oil
Saudi Arabia
TV sets
Japan
automobiles Germany
garments
China
shoes
Indonesia
pasta
Italy
The risk that foreign currency profits may evaporate in dollar terms due to unanticipated unfavorable exchange rate movements.
– Suppose $1 = ¥100 and you buy 10 shares of Toyota at ¥1,000 per share.
2. How can you get a job in the previous corporations?
1
Course Materials
– Eun and Resnick, 2010, International Financial Management, China Machine Press, 5th Edition (4rd Edition OK)
international finance. • Distinguish international finance from
domestic finance.
6
Outline
• What’s multinational finance？ • What’s Special about multinational Finance? • Why do we need to study financial
11
What’s Special about International Finance?
2.3 Market Imperfections
– Legal restrictions on movement of goods, people, and money
– Transactions costs – Shipping costs – Discrimination taxation
management of multinational firm? • Goals for International Financial Management • Globalization of the World Economy • Multinational Corporations
7
Key words
The Example of Nestlé’s Market
Imperfection
Following this, the price spread between the two types of shares narrowed dramatically.
This implies that there was a major transfer of wealth from foreign shareholders to Swiss shareholders.
SF
12,000
10,000 8,000 6,000
Bearer share
4,000 2,000
Registered share
0
11
20
31
9
18 24
Source: Financial Times, November 26, 1988 p.1. Adapted with permission.
• Multinational finance is concerned with financial management in an international setting.
9
2. What’s Special about multinational Finance?
2.1 Foreign Exchange Risk
What’s Special about multinational Finance?
2.4 Expanded Opportunity Set
When firms or individual investors venture into the arena of global markets , they can benefit from an expanded opportunity set.
4
Requirements and Grading
– Class participation and Cases (20%) – Final Exam (80%)
5
Chapter 1 Globalization & the Multinational Firm
Chapter objectives: • Understand why it is important to study
Firms can locate production in any country or region of the world to maximize their performance and raise funds in any capital market where the cost of capital is the lowest. In addition, firms can gain from greater economies of scale when their tangible and intangible assets are deployed on a global basis.
• Foreign exchange risk
外汇风险
• Political risk
政治风险
• Market impeded opportunity set
扩大的市场机遇
• Multinational corporation (MNC) 跨国公司
8
1. What’s multinational finance？
– Resources and Readings in International Finance: International Finance Resources: Yahoo Finance Readings in International Finance: The Economist
2
Course Objective
Market Imperfections represent various friction and impediments preventing markets from functioning perfectly.
12
The Example of Nestlé’s Market Imperfection
– One year later the investment is worth ten percent more in yen: ¥11,000
– But, if the yen has depreciated to $1 = ¥120, your investment has actually lost money in dollar terms.
1. It can be well-known that economic integration sweeps all over the world, corporate internationalization is the foregone conclusion of economic integration.
• Financial management is mainly concerned with how to optimally make various corporate financial decisions, such as those pertaining to investment, financing, dividend policy,and working capital management, with a view to achieving a set of given corporate objectives.
Foreigners holding Nestlébearer shares were exposed to political risk in a country that is widely viewed as a haven from such risk.
The Nestléepisode illustrates both the importance of considering market imperfections and the peril of political risk.
On November 18, 1988, Nestlélifted restrictions imposed on foreigners, allowing them to hold registered shares as well as bearer shares.
Nestlé’s Foreign Ownership Restrictions
16
3. Why do we need to study financial management of multinational firm?
• Highly globalized and integrated world economy. – Consumption – Production – Investment
10
What’s Special about multinational Finance?
2.2 Political Risk
Political risk ranges from unexpected changes in tax rules to outright expropriation of assets held by foreigners.
• It is thus essential for financial managers to fully understand vital international dimensions of financial management.
17
American consumers
import
export