FinancialManagement(财务管理,英文版)

19-1Copyright©2001byHarcourt,Inc.Allrightsreserved.Multinationalvs.domesticfinancialmanagementExchangeratesandtradinginforeignexchangeInternationalmonetarysystemInternationalmoneyandcapitalmarketsCHAPTER19MultinationalFinancialManagement19-2Copyright©2001byHarcourt,Inc.Allrightsreserved.Whatisamultinationalcorporation?Acorporationthatoperatesintwoormorecountries.19-3Copyright©2001byHarcourt,Inc.Allrightsreserved.1.Toseeknewmarkets.2.Toseekrawmaterials.3.Toseeknewtechnology.4.Toseekproductionefficiency.5.Toavoidpoliticalandregulatoryhurdles.6.Todiversify.Whydofirmsexpandintoothercountries?19-4Copyright©2001byHarcourt,Inc.Allrightsreserved.1.Differentcurrencydenominations.2.Economicandlegalramifications.3.Languagedifferences.4.Culturaldifferences.5.Roleofgovernments.6.Politicalrisk.Whatarethesixmajorfactorsthatdistinguishmultinationalfromdomesticfinancialmanagement?19-5Copyright©2001byHarcourt,Inc.Allrightsreserved.U.S.$tobuy1UnitJapaneseyen0.009Australiandollar0.650Arethesecurrencypricesdirectorindirectquotations?Sincetheyarepricesofforeigncurrenciesexpressedindollars,theyaredirectquotations.Considerthefollowingexchangerates:19-6Copyright©2001byHarcourt,Inc.Allrightsreserved.ThenumberofunitsofforeigncurrencyneededtopurchaseoneU.S.dollar,orthereciprocalofadirectquotation.Whatisanindirectquotation?19-7Copyright©2001byHarcourt,Inc.Allrightsreserved.CalculatetheindirectquotationsforyenandAustraliandollars.#ofUnitsofForeignCurrencyperU.S.$Japaneseyen111.11Australiandollar1.5385Yen:1/0.009=111.11.A.Dollar:1/0.650=1.5385.19-8Copyright©2001byHarcourt,Inc.Allrightsreserved.Theexchangeratebetweenanytwocurrencies.CrossratesareactuallycalculatedonthebasisofvariouscurrenciesrelativetotheU.S.dollar.Whatisacrossrate?19-9Copyright©2001byHarcourt,Inc.Allrightsreserved.Crossrate=x=111.11x0.650=72.22yen/A.dollar.Crossrate=x=1.5385x0.009=0.0138A.dollars/yen.CalculatethetwocrossratesbetweenyenandAustraliandollars.YenU.S.DollarsU.S.DollarA.DollarA.DollarsU.S.DollarsU.S.DollarYen19-10Copyright©2001byHarcourt,Inc.Allrightsreserved.Thetwocrossratesarereciprocalsofoneanother.Theycanbecalculatedbydividingeitherthedirectorindirectquotations.Note:19-11Copyright©2001byHarcourt,Inc.Allrightsreserved.Price=(1.75)(1.50)(111.11)=291.66yen.ThefirmcanproducealiteroforangejuiceandshipittoJapanfor$1.75.Ifthefirmwantsa50%markupontheproduct,whatshouldthejuicesellforinJapan?19-12Copyright©2001byHarcourt,Inc.Allrightsreserved.250yen=250(0.0138)=3.45A.dollars.6–3.45=2.55Australiandollarprofit.1.5385A.dollars=1U.S.dollar.Dollarprofit=2.55/1.5385=$1.66.NowthefirmbeginsproducingtheorangejuiceinJapan.Theproductcosts250yentoproduceandshiptoAustralia,whereitcanbesoldfor6Australiandollars.Whatisthedollarprofitonthesale?19-13Copyright©2001byHarcourt,Inc.Allrightsreserved.Theriskthatthevalueofacashflowinonecurrencytranslatedtoanothercurrencywilldeclineduetoachangeinexchangerates.Forexample,inthelastslide,aweakeningAustraliandollar(strengtheningdollar)wouldlowerthedollarprofit.Whatisexchangeraterisk?19-14Copyright©2001byHarcourt,Inc.Allrightsreserved.Thecurrentsystemisafloatingratesystem.Priorto1971,afixedexchangeratesystemwasineffect.TheU.S.dollarwastiedtogold.Othercurrenciesweretiedtothedollar.Describethecurrentandformerinternationalmonetarysystems.19-15Copyright©2001byHarcourt,Inc.Allrightsreserved.TheEuropeanMonetaryUnionIn2002,thefullimplementationofthe“euro”isexpectedtobecomplete.Thenationalcurrenciesofthe11participatingcountrieswillbephasedoutinfavorofthe“euro.”ThenewlyformedEuropeanCentralBankwillcontrolthemonetarypolicyoftheEMU.19-16Copyright©2001byHarcourt,Inc.Allrightsreserved.The11MemberNationsoftheEuropeanMonetaryUnionAustriaBelgiumFinlandFranceGermanyIrelandItalyLuxembourgNetherlandsPortugalSpainEuropeanUnioncountriesnotintheEMU:BritainSwedenDenmarkGreece19-17Copyright©2001byHarcourt,Inc.Allrightsreserved.Acurrencyisconvertiblewhentheissuingcountrypromisestoredeemthecurrencyatcurrentmarketrates.Convertiblecurrenciesaretradedinworldcurrencymarkets.Whatisaconvertiblecurrency?19-18Copyright©2001byHarcourt,Inc.Allrightsreserved.Itbecomesverydifficultformulti-nationalcompaniestoconductbusinessbecausethereisnoeasywaytotakeprofitsoutofthecountry.Often,firmswillbarterforgoodstoexporttotheirhomecountries.Whatproblemsarisewhenafirmoperatesinacountrywhosecurrencyisnotconvertible?19-19Copyright©2001byHarcourt,Inc.Allrightsreserved.Spotratesaretheratestobuycurrencyforimmediatedelivery.Forwardratesaretheratestobuycurrencyatsomeagreed-upondateinthefuture.Whatisthedifferencebetweenspotratesandforwardrates?19-20Copyright©2001byHarcourt,Inc.Allrightsreserved.Whenistheforwardrateatapremiumtothespotrate?IftheU.S.dollarbuysfewerunitsofaforeigncurrencyintheforwardthaninthespotmarket,theforeigncurrencyissellingatapremium.Intheoppositesituation,theforeigncurrencyissellingatadiscount.Theprimarydeterminantofthespot/forwardraterelationshipisrelativeinterestrates.19-21Copyright©2001byHarcourt,Inc.Allrightsreserved.Whatisinterestrateparity?Interestrate