第三十二章 跨国公司财务

McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-0ChapterOutline32.1Terminology32.2ForeignExchangeMarketsandExchangeRates32.3TheLawofOnePriceandPurchasingPowerParity32.4InterestRatesandExchangeRates:InterestRateParity32.5InternationalCapitalBudgeting32.6InternationalFinancialDecisions32.7ReportingForeignOperations32.8SummaryandConclusionsMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-132.1Terminology•AmericanDepositoryReceipt(ADR):asecurityissuedintheU.S.torepresentsharesofaforeignstock.•Crossrate:theexchangeratebetweentwoforeigncurrencies,e.g.theexchangeratebetween£and¥.•Euro(€):thesinglecurrencyoftheEuropeanMonetaryUnionwhichwasadoptedby11MemberStateson1January1999.Thesememberstatesare:Belgium,Germany,Spain,France,Ireland,Italy,Luxemburg,Finland,Austria,PortugalandtheNetherlands.•Eurobonds:bondsdenominatedinaparticularcurrencyandissuedsimultaneouslyinthebondmarketsofseveralcountries.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-232.1Terminology•Eurocurrency:moneydepositedinafinancialcenteroutsidethehomecountry.EurodollarsaredollardepositsheldoutsidetheU.S.;EuroyenareyendenominateddepositsheldoutsideJapan.•Foreignbonds:bondsissuedinanothernation’scapitalmarketbyaforeignborrower.•Gilts:BritishandIrishgovernmentsecurities.•LIBOR:theLondonInterbankOfferRateistheratemostinternationalbankschargeonanotherforloansofEurodollarsovernightintheLondonmarket.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-332.2ForeignExchangeMarketsandExchangeRates•Withoutadoubttheforeignexchangemarketistheworld’slargestfinancialmarket.•Inthismarketonecountry’scurrencyistradedforanother’s.•Mostofthetradingtakesplaceinafewcurrencies.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-4FOREXMarketParticipants•TheFOREXmarketisatwo-tieredmarket:–InterbankMarket(Wholesale)•About700banksworldwidestandreadytomakeamarketinForeignexchange.•Nonbankdealersaccountforabout20%ofthemarket.•ThereareFXbrokerswhomatchbuyandsellordersbutdonotcarryinventoryandFXspecialists.–ClientMarket(Retail)•Marketparticipantsincludeinternationalbanks,theircustomers,nonbankdealers,FOREXbrokers,andcentralbanks.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-5CorrespondentBankingRelationships•Largecommercialbanksmaintaindemanddepositaccountswithoneanotherwhichfacilitatestheefficientfunctioningoftheforexmarket.•Internationalcommercialbankscommunicatewithoneanotherwith:–SWIFT:TheSocietyforWorldwideInterbankFinancialTelecommunications.–CHIPS:ClearingHouseInterbankPaymentsSystem–ECHOExchangeClearingHouseLimited,thefirstglobalclearinghouseforsettlinginterbankFOREXtransactions.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-6SpotRateQuotations•Thespotmarketisthemarketforimmediatedelivery.(Settlementisduewithintwodays.)•Directquotation–theU.S.dollarequivalent–e.g.“aJapaneseYenisworthaboutapenny”•IndirectQuotation–thepriceofaU.S.dollarintheforeigncurrency–e.g.“youget100yentothedollar”McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-7SpotFXtrading•Intheinterbankmarket,thestandardsizetradeisaboutU.S.$10million.•Abanktradingroomisanoisy,activeplace.•Thestakesarehigh.•The“longterm”isabout10minutes.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-8CrossRates•SupposethatSDM(0)=.50–i.e.$1=2DMinthespotmarket•andthatS¥(0)=100–i.e.$1=¥100•WhatmusttheDM/¥crossratebe??0DM1or.02)0(?011$2?001$¥,$¥$¥since¥/DMSDMDMDMDMDMMcGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-9TriangularArbitrage$£¥CreditLyonnaisS£(0)=1.50CreditAgricoleS¥/£(0)=85BarclaysS¥(0)=120Supposeweobservethesebankspostingtheseexchangerates.Firstcalculatetheimpliedcrossratestoseeifanarbitrageexists.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-10TriangularArbitrage$£¥CreditLyonnaisS£(0)=1.50CreditAgricoleS¥/£(0)=85BarclaysS¥(0)=120TheimpliedS(¥/£)crossrateisS(¥/£)=80CreditAgricolehaspostedaquoteofS(¥/£)=85sothereisanarbitrageopportunity.80¥1£120¥1$1$50.1£So,howcanwemakemoney?McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-11TriangularArbitrage$£¥CreditLyonnaisS£(0)=1.50CreditAgricoleS¥/£(0)=85BarclaysS¥(0)=120Aseasyas1–2–3:1.Sellour$for£,2.Sellour£for¥,3.Sellthose¥for$.McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-12TriangularArbitrageSell$100,000for£atS£(0)=1.50receive£150,000Sellour£150,000for¥atS¥/£(0)=85receive¥12,750,000Sell¥12,750,000for$atS¥(0)=120receive$106,250profitperroundtrip=$106,250-$100,000=$6,250McGraw-Hill/IrwinCopyright©2002byTheMcGraw-HillCompanies,Inc.Allrightsreserved.32-13TheForwardMarket•Aforwardcontractisanagreementtobuyorsellanassetinthefutureatpricesagreedupontoday.•Ifyouhaveeverhadtoorderanout-of-stocktextbook,thenyouhaveenteredintoaforwardcontract.McGraw-Hill