跨国公司财务学AnIntroductiontoMultinationalFinance

KirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-1IOverviewandBackgroundIITheInternationalFinancialEnvironmentIIIDerivativeSecuritiesforHedgingCurrencyRiskIVManagingtheRisksofMultinationalOperationsVValuationandtheStructureofMultinationalOperationsVIInternationalPortfolioInvestmentandAssetPricingMultinationalFinancebyKirtC.ButlerKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-2Multinationalfinancialmanagementisfinancialmanagementconductedinmorethanonecultural,social,economic,orpoliticalenvironmentWe’lldevelopaframeworkforevaluatingtheopportunities,costsandrisksofoperatingintheworld’smarketsforgoods,services,andfinancialassetsandliabilitiesChapter1AnIntroductiontoMultinationalFinanceKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-3ChallengesfacingthemultinationalmanagerThegentlereaderwillnever,neverknowwhataconsummateasshecanbecome,untilhegoesabroad.MarkTwainKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-4VivéladifferenceCross-borderdifferencescanaffectallareasofbusiness,particularlythroughdifferencesin-Language&culture-Humanresourcemanagement-Accounting-Marketing-Distribution-Logistics-Financialmarkets-Corporategovernance-Otherbusinessconventions(legal,accounting,taxation,regulation,etc.)KirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-5…wheretheartresidesThenotesIhandlenobetterthanmanypianists,butthepausesbetweenthenotes–ah,thatiswheretheartresides.ArthurSchnabelKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-6MultinationalfinancialmanagementMultinationalfinanceisinterdisciplinarywithinthefieldoffinanceMultinationalfinancialmanagersmustbefamiliarwith-ForeignexchangeandEurocurrencymarkets-Derivativessecurities-Internationalfinancial(debt&equity)markets-Internationalmarketsforrealassets-InternationalportfolioinvestmentKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-7TheapproachofthebookEverythingshouldbemadeassimpleaspossible,butnotsimpler.AlbertEinsteinKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-8Value=St[E[CFt]/(1+it)t]Multinationalinvestmentpolicy-Higherreturnsfromexistinginvestments-NewinvestmentopportunitiesMultinationalfinancialpolicy-ReducedcapitalcoststhroughaccesstointernationalcapitalmarketsTheMNC’sopportunitiesKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-9PerfectfinancialmarketassumptionsFinancialopportunitiesofteninvolveaviolationofoneoftheseassumptionsFrictionlessmarkets-Nogovernmentinterventionortaxes-Notransactions,agency,orbankruptcycostsRationalinvestorsEqualaccesstocostlessinformationEqualaccesstomarketpricesKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-10FrictionlessmarketsensureoperationalefficiencyRationalinvestorswithequalaccesstomarketsandinformationensureinformationalefficiency-Thatis,amarketinwhichpricesreflectallrelevantinformationTogether,thesepromoteallocationalefficiencyMarketefficiencyKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-11InvestmentopportunitiesMNC抯investmentopportunitysetDomesticfirm抯investmentopportunitysetDomesticfirm抯marginalcostofcapitalDomesticfirmCapitalbudget%KirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-12FinancingopportunitiesMNC抯marginalcostofcapitalDomesticfirm抯investmentopportunitysetDomesticfirm抯marginalcostofcapitalDomesticfirmCapitalbudget%KirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-13ThevalueofmultinationalityReturn0%5%10%15%20%25%0100200300400500Capitalbudget($millions)MNC’sinvestmentopportunitysetDomesticfirm’scostofcapitalMNC’scostofcapitalDomesticfirm’sinvestmentopportunitysetDomesticfirmMultinationalcorporation(MNC)KirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-14TheMNC’sadditionalrisksCountryrisk-theriskthatthebusinessenvironmentinahostcountrywillunexpectedlychange-Politicalrisk-theriskthatthebusinessenvironmentinahostcountrywillchangeunexpectedlyduetopoliticalevents-Financialrisk-theriskofunexpectedchangeinthefinancialoreconomicenvironmentofahostcountryKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-15RiskversusriskexposureRiskexistswheneveractualoutcomescandifferfromexpectationsAcompanyhasariskexposurewhenitsvaluecanchangewithunexpectedchangesinbusinessconditionsKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-16ForeignmarketentryExportorimportentry-Agentsordistributors(foreignordomestic)-ForeignsalesbranchesorsubsidiariesContract-basedentry-LicensingorfranchisingInvestment-basedentry-Foreigndirectinvestments-Mergersandacquisitions-StrategicalliancesorjointventuresKirtC.Butler,MultinationalFinance,South-WesternCollegePublishing,3e1-17ExportthroughagentsordistributorsExportagentsanddistributorsshouldhave-Technicalknowledgeoftheproduct-Experience,expertise,andmarketingcontactsintheforeigncountry-Experienceandexpertiseinshipping,documentation,andtradecredit-Reliabilityandfinancialst