跨国财务管理概述

1,Itcanbewell-knownthateconomicintegrationsweepsallovertheworld,corporateinternationalizationistheforegoneconclusionofeconomicintegration.Howcanyougetajobinthepreviouscorporations?,2,CourseMaterials,EunandResnick,2010,InternationalFinancialManagement,ChinaMachinePress,5thEdition(4rdEditionOK)ResourcesandReadingsinInternationalFinance:InternationalFinanceResources:YahooFinanceReadingsinInternationalFinance:TheEconomist,3,CourseObjective,Itisanewfieldofmoderntimescorporationfinancialmanagement.Toprovideaframeworkformakingcorporatefinancialdecisionsinaninternationalcontext.,4,Globalization,ForeignInvestmentDecisions,InternationalCapitalBudgeting,SourcingCapitalinGlobalMarkets,MultinationalCashManagement,Synthesis,CourseOverview,5,RequirementsandGrading,ClassparticipationandCases(20%)FinalExam(80%),6,Chapter1Globalization&theMultinationalFirm,Chapterobjectives:Understandwhyitisimportanttostudyinternationalfinance.Distinguishinternationalfinancefromdomesticfinance.,7,Whatsmultinationalfinance？WhatsSpecialaboutmultinationalFinance?Whydoweneedtostudyfinancialmanagementofmultinationalfirm?GoalsforInternationalFinancialManagementGlobalizationoftheWorldEconomyMultinationalCorporations,Outline,8,Keywords,ForeignexchangeriskPoliticalriskMarketimperfectionExpandedopportunitysetMultinationalcorporation(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,9,1.Whatsmultinationalfinance？,Financialmanagementismainlyconcernedwithhowtooptimallymakevariouscorporatefinancialdecisions,suchasthosepertainingtoinvestment,financing,dividendpolicy,andworkingcapitalmanagement,withaviewtoachievingasetofgivencorporateobjectives.Multinationalfinanceisconcernedwithfinancialmanagementinaninternationalsetting.,10,2.WhatsSpecialaboutmultinationalFinance?,2.1ForeignExchangeRiskTheriskthatforeigncurrencyprofitsmayevaporateindollartermsduetounanticipatedunfavorableexchangeratemovements.Suppose$1=100andyoubuy10sharesofToyotaat1,000pershare.Oneyearlatertheinvestmentisworthtenpercentmoreinyen:11,000But,iftheyenhasdepreciatedto$1=120,yourinvestmenthasactuallylostmoneyindollarterms.,11,2.2PoliticalRiskPoliticalriskrangesfromunexpectedchangesintaxrulestooutrightexpropriationofassetsheldbyforeigners.Sovereigngovernmentshavetherighttoregulatethemovementofgoods,capital,andpeopleacrosstheirborders.Theselawssometimeschangeinunexpectedways.,WhatsSpecialaboutmultinationalFinance?,12,WhatsSpecialaboutInternationalFinance?,2.3MarketImperfectionsLegalrestrictionsonmovementofgoods,people,andmoneyTransactionscostsShippingcostsDiscriminationtaxationMarketImperfectionsrepresentvariousfrictionandimpedimentspreventingmarketsfromfunctioningperfectly.,TheExampleofNestlsMarketImperfection,Nestlusedtoissuetwodifferentclassesofcommonstockbearersharesandregisteredshares.Foreignerswereonlyallowedtobuybearershares.Swisscitizenscouldbuyregisteredshares.Thebearerstockwasmoreexpensive.OnNovember18,1988,Nestlliftedrestrictionsimposedonforeigners,allowingthemtoholdregisteredsharesaswellasbearershares.,NestlsForeignOwnershipRestrictions,Source:FinancialTimes,November26,1988p.1.Adaptedwithpermission.,SF,TheExampleofNestlsMarketImperfection,Followingthis,thepricespreadbetweenthetwotypesofsharesnarroweddramatically.ThisimpliesthattherewasamajortransferofwealthfromforeignshareholderstoSwissshareholders.ForeignersholdingNestlbearershareswereexposedtopoliticalriskinacountrythatiswidelyviewedasahavenfromsuchrisk.TheNestlepisodeillustratesboththeimportanceofconsideringmarketimperfectionsandtheperilofpoliticalrisk.,16,2.4ExpandedOpportunitySetWhenfirmsorindividualinvestorsventureintothearenaofglobalmarkets,theycanbenefitfromanexpandedopportunityset.Firmscanlocateproductioninanycountryorregionoftheworldtomaximizetheirperformanceandraisefundsinanycapitalmarketwherethecostofcapitalisthelowest.Inaddition,firmscangainfromgreatereconomiesofscalewhentheirtangibleandintangibleassetsaredeployedonaglobalbasis.,WhatsSpecialaboutmultinationalFinance?,17,3.Whydoweneedtostudyfinancialmanagementofmultinationalfirm?,Highlyglobalizedandintegratedworldeconomy.ConsumptionProductionInvestmentItisthusessentialforfinancialmanagerstofullyunderstandvitalinternationaldimensionsoffinancialmanagement.,18,Americanconsumers,import,oil,SaudiArabia,TVsets,Japan,automobiles,Germany,garments,China,shoes,Indonesia,pasta,Italy,wine,France,export,aircraft,software,movies,jeans,wheat,andotherproducts,19,Production,Nike,aU.S.-basedcompanywithagloballyrecognizedbrandname,manufacturesathleticshoesinsuchAsiandevelopingcountriesasChina,Indonesia,andVietnamusingsubcontractors,andsellstheproductsintheU.S.andforeignmarkets.ThecompanyhasnoproductionfacilitiesintheUnitedStates.Inaword,MNCsrelentlesseffortstosourceinputsandlocateproductionanywhereintheworldwherecostsarelowerandprofitsarehigher.,20,Production,Forexample,personalcomputerssoldintheworldmarketmighthavebeenassembledinMalaysiawithChinese-mademonitors,Korean-madekeyboards,U.S.-madechipsandpreinstalledsoftwarepackagesthatwerejointlydevelopedbyU.S.andIndianengineers.,21,Investment,Recently,financialmarketshavealsobecomehighlyintegrated.Thisdevelopmentallowsinvestorstodiversifytheirinvestmentportfoliosinternationally.Letsconsidercross-listing.Manymajorcorporationsoftheworld,suchasIBM,Sony,havetheirsharescross-listedonforeignstockexchanges,therebyrenderingtheirsharesinternationallytradableandgainingaccesstoforeigncapitalaswell.Forexample,Daimler-Benz,sventureinChinacanbefinancedpartlybyAmericaninvestorswhopurchaseDaimler-BenzssharestradedontheNewYorkStockExchange.,22,Keywords,CorporategovernanceTheGeneralAgreementonTariffsandTrade(GATT)TheWorldTradeOrganization(WTO)TheEuropeanUnion(EU)TheNorthAmericanFreeTradeAgreement(NAFTA),欧盟,关贸总协定,公司治理,世界贸易组织,北美自由贸易协定,Thefocusofthetextistoequipthereaderwiththe“intellectualtoolbox”ofaneffectiveglobalmanagerbutwhatgoalshouldthiseffectiveglobalmanagerbeworkingtoward?Maximizationofshareholderwealth?orOtherGoals?,4.GoalsforInternationalFinancialManagement,4.1MaximizeShareholderWealth,LongacceptedasagoalintheAnglo-Saxoncountries,andtheultimategoalofinternationalfinancialmanagement.,4.2OtherGoals,Inothercountriesshareholdersareviewedasmerelyoneamongmany“stakeholders”ofthefirmincluding:EmployeesSuppliersCustomersTheytendtoconsiderthepromotionofthefirmsstakeholdersoverallwelfareasthemostimportantcorporategoal.,26,5.GlobalizationoftheWorldEconomy,EmergenceofglobalizedfinancialmarketsEmergenceoftheeuroasaglobalcurrencyTradeliberalizationandeconomicintegrationPrivatization,DeregulationofFinancialMarketscoupledwithAdvancesinTechnologyhavegreatlyreducedinformationandtransactionscosts,whichhasledto:FinancialInnovations,suchasCurrencyfuturesandoptionsCross-borderstocklistingsInternationalmutualfunds,5.1EmergenceofGlobalizedFinancialMarkets,5.2EmergenceoftheEuroasaGlobalCurrency,Amomentouseventinthehistoryofworldfinancialsystems.Currentlymorethan300millionEuropeansin28countriesareusingthecommoncurrencyonadailybasis.1欧元=8.5629人民币元1欧元=1.3797美元,5.3TradeLiberalizationandEconomicIntegration,Overthepast50years,internationaltradeincreasednearlythreetimesasfastasworldGDP.Eventheonce-protectionistandinward-lookingcountriesarenowincreasinglypursuingfree-marketandopen-economypoliciesbecauseofthegainsfrominternationaltrade.,5.3TradeLiberalizationandEconomicIntegration,TheGeneralAgreementonTariffsandTrade(GATT)amultilateralagreementamongmembercountrieshasreducedmanybarrierstotrade.TheWorldTradeOrganizationhasthepowertoenforcetherulesofinternationaltrade.,EU&NAFTA,Onregionallevel,formalarrangementamongcountrieshavebeeninstitutedtopromoteeconomicintegration.TheEU(EuropeanUnion)includes28memberstatesthathaveeliminatedbarrierstothefreeflowofgoods,capital,andpeople.TheNorthAmericanFreeTradeAgreement(NAFTA)callsforphasingoutimpedimentstotradebetweenCanada,MexicoandtheUnitedStatesovera15-yearperiod.,5.4Privatization,Thesellingoffstate-runenterprisestoinvestorsisalsoknownas“Denationalization”.Oftenseeninsocialisteconomiesintransitiontomarketeconomies.Bymostestimatesthisincreasestheefficiencyoftheenterprise.Oftenspursatremendousincreaseincross-borderinvestment.,33,6.MultinationalCorporations,Thereareabout60,000MNCsintheworldwithover500,000foreignaffiliates.Amultinationalcorporation(MNC)canbedefinedasabusinessfirmincorporatedinonecountrythathasproductionandsalesoperationsinseveralothercountries.,34,MultinationalCorporations,ManyMNCsobtainrawmaterialsfromonenationalmarket,financialcapitalfromanother,producegoodswithlaborandcapitalequipmentinathirdcountryandselltheiroutputinvariousothernationalmarkets.WhichfamousMNCsdoyouknow?,35,Top10MNCsin2002(billionofdollars),36,ThewaysinwhichMNCsgain,EconomyofscaleSpreadingRUtilizingtheirtechnologicalandmanagerialknow-howgloballywithminimumadditioncosts,andsoforth.,37,ThewaysinwhichMNCsgain,GlobaloperationMNCscanusetheirglobalpresencetotakeadvantageofunderpricedlaborservicesavailableincertaindevelopingcountries,andgainaccesstospecialR&Dcapabilitiesresidinginadvancedcountries.,38,Questions,1.Howisinternationalfinancialmanagementdifferentfromdomesticfinancialmanagement?,39,Questions,2.Whataremultinationalcorporations(MNCs)?,WhatsSpecialabout“International”Finance?,1.Whatmajordimensionsetsapartinternationalfinancefromdomesticfinance?a)foreignexchangeandpoliticalrisksb)Marketimperfectionsc)Expandedopportunitysetd)alloftheaboveAnswer:d,40,2.Anexampleofapoliticalriskisa)Expropriationofassetsb)Adversechangeintaxrulesc)Theoppositionpartybeingelectedd)a)andb)arebothcorrectAnswer:d,41,3.Productionofgoodsandserviceshasbecomeglobalizedtoalargeextentasaresultofa)Skilledlaborbeinghighlymobileb)Naturalresourcesbeingdepletedinonecountryafteranotherc)Multinationalcorporationseffortstosourceinputsandlocateproductionanywherewherecostsarelowerandprofitshigherd)CommontastesworldwideforthesamegoodsandservicesAnswer:c,42,4.Supposeyourfirminvests$100,000inaprojectinItaly.Atthetimetheexchangerateis$1.25=1.00.Oneyearlatertheexchangerateisthesame,buttheItaliangovernmenthasexpropriatedyourfirmsassetspayingonly80,000incompensation.Thisisanexampleofa)Exchangerateriskb)Politicalriskc)Marketimperfectionsd)Noneoftheabove,since$100,000=80,000$1.25/1.00Answer:b),43,5.Mostgovernmentsatleasttrytomakeitdifficultforpeopletocrosstheirbordersillegally.Thisbarriertothefreemovementoflaborisanexampleofa)Informationasymmetryb)Excessivetransactionscostsc)Racialdiscriminationd)AmarketimperfectionAnswer:d),44,6.Whenindividualinvestorsbecomeawareofoverseasinvestmentopportunitiesandarewillingtodiversifytheirportfoliosinternationally,a)theytradeonemarketimperfection,informationasymmetry,foranother,exchangeraterisk.b)theybenefitfromanexpandedopportunityset.c)Theyshouldnotbothertoreadortounderstandtheprospectus,sinceitsprobablywritteninaforeignlanguaged)Theyshouldinvestonlyindollarsoreuros.Answer:b,45,7.Nestl,awell-knownSwisscorporation,a)Hasbeenaparagonofvirtueinitsoppositiontoallformsofpoliticalrisk.b)Atonetimeplacedrestrictionsonforeignownershipofitsstock.Whenitrelaxedtheserestrictions,thetotalmarketvalueofthefirmfell.c)Atonetimeplacedrestrictionsonforeignownershipofitsstock.Whenitrelaxedtheserestrictions,therewasamajortransferofwealthfromforeignshareholderstoSwissshareholders.d)NoneoftheaboveAnswer:c),46,8.Thegoalofshareholderwealthmaximizationa)isnotappropriatefornon-U.S.businessfirmsb)meansthatallbusinessdecisionsandinvestmentsthatafirmmakesaredoneforthepurposeofmakingtheownersofthefirmbetterofffinanciallyc)isasub-objectivethefirmshouldattempttoachieveaftertheobjectiveofcustomersatisfactionismetd)isinconflictwiththeprivatizationprocesstakingplaceinthird-worldcountriesAnswer:b,47,9.RecentcorporatescandalsatfirmssuchasEnron,WorldComandtheItalianfirmParmalata)Showthatmanagersmightbetemptedtopursuetheirownprivateinterestsattheexpenseofshareholders.b)ShowthatItalianshareholdersarebetteratmonitoringmanagerialbehaviorthanU.S.shareholders.c)Showthatwhite-collarcriminalshardlyevergetpunished.d)Showthatsocialismisabetterwaytogothancapitalism.Answera),48,10.WhilethecorporategovernanceproblemisnotconfinedtotheUnitedStates,a)Itcanbeamuchmoreseriousprobleminmanyotherpartsoftheworld,wherelegalprotectionofshareholdersisweakornonexistent.b)IthasreacheditshighpointintheUnitedStates.c)TheU.S.legalsystem,withlawsuitsusedonlyasalastresort,ensuredthatanyconflictsofinterestwillsoonbeathingofthepast.d)NoneoftheaboveAnswer:a),49,11.Theownersofabusinessarethea)Taxpayersb)Workersc)Suppliersd)ShareholdersAnswer:d),50,12.Themassiveprivatizationthatiscurrentlytakingplaceinformerlysocialistcountries,willlikelya)eventuallyenhancethestandardoflivingtothesecountriescitizensb)dependonprivateinvestmentc)