跨国财务管理11章

11.Itcanbewell-knownthateconomicintegrationsweepsallovertheworld,corporateinternationalizationistheforegoneconclusionofeconomicintegration.2.Howcanyougetajobinthepreviouscorporations?2CourseMaterials–EunandResnick,2010,InternationalFinancialManagement,ChinaMachinePress,5thEdition(4rdEditionOK)–ResourcesandReadingsinInternationalFinance:InternationalFinanceResources:YahooFinanceReadingsinInternationalFinance:TheEconomist3CourseObjective–Itisanewfieldofmoderntimescorporationfinancialmanagement.–Toprovideaframeworkformakingcorporatefinancialdecisionsinaninternationalcontext.4GlobalizationForeignInvestmentDecisionsInternationalCapitalBudgetingSourcingCapitalinGlobalMarketsMultinationalCashManagementSynthesisCourseOverview5RequirementsandGrading–ClassparticipationandCases(20%)–FinalExam(80%)6Chapter1Globalization&theMultinationalFirmChapterobjectives:•Understandwhyitisimportanttostudyinternationalfinance.•Distinguishinternationalfinancefromdomesticfinance.7•What’smultinationalfinance？•What’sSpecialaboutmultinationalFinance?•Whydoweneedtostudyfinancialmanagementofmultinationalfirm?•GoalsforInternationalFinancialManagement•GlobalizationoftheWorldEconomy•MultinationalCorporationsOutline8Keywords•Foreignexchangerisk•Politicalrisk•Marketimperfection•Expandedopportunityset•Multinationalcorporation(MNC)外汇风险政治风险市场不完善跨国公司扩大的市场机遇91.What’smultinationalfinance？•Financialmanagementismainlyconcernedwithhowtooptimallymakevariouscorporatefinancialdecisions,suchasthosepertainingtoinvestment,financing,dividendpolicy,andworkingcapitalmanagement,withaviewtoachievingasetofgivencorporateobjectives.•Multinationalfinanceisconcernedwithfinancialmanagementinaninternationalsetting.102.What’sSpecialaboutmultinationalFinance?2.1ForeignExchangeRiskTheriskthatforeigncurrencyprofitsmayevaporateindollartermsduetounanticipatedunfavorableexchangeratemovements.–Suppose$1=¥100andyoubuy10sharesofToyotaat¥1,000pershare.–Oneyearlatertheinvestmentisworthtenpercentmoreinyen:¥11,000–But,iftheyenhasdepreciatedto$1=¥120,yourinvestmenthasactuallylostmoneyindollarterms.112.2PoliticalRiskPoliticalriskrangesfromunexpectedchangesintaxrulestooutrightexpropriationofassetsheldbyforeigners.Sovereigngovernmentshavetherighttoregulatethemovementofgoods,capital,andpeopleacrosstheirborders.Theselawssometimeschangeinunexpectedways.What’sSpecialaboutmultinationalFinance?12What’sSpecialaboutInternationalFinance?2.3MarketImperfections–Legalrestrictionsonmovementofgoods,people,andmoney–Transactionscosts–Shippingcosts–DiscriminationtaxationMarketImperfectionsrepresentvariousfrictionandimpedimentspreventingmarketsfromfunctioningperfectly.TheExampleofNestlé’sMarketImperfectionNestléusedtoissuetwodifferentclassesofcommonstockbearersharesandregisteredshares.Foreignerswereonlyallowedtobuybearershares.Swisscitizenscouldbuyregisteredshares.Thebearerstockwasmoreexpensive.OnNovember18,1988,Nestléliftedrestrictionsimposedonforeigners,allowingthemtoholdregisteredsharesaswellasbearershares.Nestlé’sForeignOwnershipRestrictions12,00010,0008,0006,0004,0002,000011203191824Source:FinancialTimes,November26,1988p.1.Adaptedwithpermission.SFBearershareRegisteredshareTheExampleofNestlé’sMarketImperfectionFollowingthis,thepricespreadbetweenthetwotypesofsharesnarroweddramatically.ThisimpliesthattherewasamajortransferofwealthfromforeignshareholderstoSwissshareholders.ForeignersholdingNestlébearershareswereexposedtopoliticalriskinacountrythatiswidelyviewedasahavenfromsuchrisk.TheNestléepisodeillustratesboththeimportanceofconsideringmarketimperfectionsandtheperilofpoliticalrisk.162.4ExpandedOpportunitySetWhenfirmsorindividualinvestorsventureintothearenaofglobalmarkets,theycanbenefitfromanexpandedopportunityset.Firmscanlocateproductioninanycountryorregionoftheworldtomaximizetheirperformanceandraisefundsinanycapitalmarketwherethecostofcapitalisthelowest.Inaddition,firmscangainfromgreatereconomiesofscalewhentheirtangibleandintangibleassetsaredeployedonaglobalbasis.What’sSpecialaboutmultinationalFinance?173.Whydoweneedtostudyfinancialmanagementofmultinationalfirm?•Highlyglobalizedandintegratedworldeconomy.–Consumption–Production–Investment•Itisthusessentialforfinancialmanagerstofullyunderstandvitalinternationaldimensionsoffinancialmanagement.18AmericanconsumersimportoilSaudiArabiaTVsetsJapanautomobilesGermanygarmentsChinashoesIndonesiapastaItalywineFranceexportaircraft,software,movies,jeans,wheat,andotherproducts19Production•Nike,aU.S.-basedcompanywithagloballyrecognizedbrandname,manufacturesathleticshoesinsuchAsiandevelopingcountriesasChina,Indonesia,andVietnamusingsubcontractors,andsellstheproductsintheU.S.andforeignmarkets.ThecompanyhasnoproductionfacilitiesintheUnitedStates.•Inaword,MNCsrelentlesseffortstosourceinputsandlocateproductionanywhereintheworldwherecostsarelowerandprofitsarehigher.20Production•Forexample,personalcomputerssoldintheworldmarketmighthavebeenassembledinMalaysiawithChinese-mademonitors,Korean-madekeyboards,U.S.-madechipsandpreinstalledsoftwarepackagesthatwerejointlydevelop