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1、国际关系课件国际关系课件An Introduction to Multinational Finance1-2Multinational financial management is financial management conducted in more than one cultural,social,economic,or political environmentWell develop a framework for evaluating the opportunities,costs and risks of operating in the worlds markets f
2、or goods,services,and financial assets and liabilitiesChapter 1An Introduction to Multinational Finance1-3Challenges facing themultinational managerThe gentle reader will never,never know what a consummate ass he can become,until he goes abroad.Mark Twain1-4Viv la differenceCross-border differences
3、can affect all areas of business,particularly through differences in-Language&culture-Human resource management-Accounting-Marketing-Distribution-Logistics-Financial markets-Corporate governance-Other business conventions(legal,accounting,taxation,regulation,etc.)1-5where the art residesThe notes I
4、handle no better than many pianists,but the pauses between the notes ah,that is where the art resides.Arthur Schnabel1-6Multinational financial managementMultinational finance is interdisciplinaryinterdisciplinary within the field of financeMultinational financial managers must be familiar with-Fore
5、ign exchange and Eurocurrency markets-Derivatives securities-International financial(debt&equity)markets-International markets for real assets-International portfolio investment1-7The approach of the bookEverything should be madeas simple as possible,but not simpler.Albert Einstein1-8Value=St ECFt/(
6、1+it)tMultinational investment policy-Higher returns from existing investments-New investment opportunitiesMultinational financial policy-Reduced capital costs through access to international capital marketsThe MNCs opportunities1-9Perfect financial market assumptionsFinancial opportunities often in
7、volve a violation of one of these assumptionsFrictionless markets-No government intervention or taxes-No transactions,agency,or bankruptcy costsRational investors Equal access to costless informationEqual access to market prices1-10Frictionless markets ensure operational efficiencyRational investors
8、 with equal access to markets and information ensure informational efficiency-That is,a market in which prices reflect all relevant informationTogether,these promote allocational efficiencyMarket efficiency1-11Investment opportunities1-12Financing opportunities1-13The value of multinationality1-14Th
9、e MNCs additional risksCountry risk-the risk that the business environment in a host country will unexpectedly change-Political risk-the risk that the business environment in a host country will change unexpectedly due to political events-Financial risk-the risk of unexpected change in the financial
10、 or economic environment of a host country1-15Risk versus risk exposureRisk exists whenever actual outcomes can differ from expectationsA company has a risk exposure when its value can change with unexpected changes in business conditions1-16Foreign market entryExport or import entry-Agents or distr
11、ibutors(foreign or domestic)-Foreign sales branches or subsidiariesContract-based entry-Licensing or franchisingInvestment-based entry-Foreign direct investments-Mergers and acquisitions-Strategic alliances or joint ventures1-17Export through agents or distributorsExport agents and distributors shou
12、ld have-Technical knowledge of the product-Experience,expertise,and marketing contacts in the foreign country-Experience and expertise in shipping,documentation,and trade credit-Reliability and financial stability 1-18Foreign sales branches/subsidiaries(versus agents or distributors)Advantages-Highe
13、r sales potential-Retains control over production,marketing,distributionDisadvantages-Higher resource commitment-Slower entry-High country risks and costs1-19Contract-based entryAdvantages-quick and easy-low resource commitment-low cultural costs and risks-avoids import and investment barriersDisadv
14、antages-limited fees/royalties on license agreements-loss of control over production technology-potential creation of competitors1-20Investment-based entryAdvantages-Potential for higher sales-Potential for lower costs-Diversifies manufacturing base and matches foreign currency costs to revenues-Avo
15、ids import quotas and tariffsDisadvantages-Higher resource commitment-Higher exit costs-Must overcome cultural differences-Must overcome investment barriers1-21Investment-based entry International joint venturesMergers and acquisitionsFDI:plant expansionsFDI:new investmentSource:Ernst&Young1-22Inves
16、tment-based entryForeign direct investment-Relatively slow entry-Maintains control over assetsCross-border M&A-Relatively rapid entry,but possibly at a high price(acquisition premium)Cross-border joint ventures-May avoid investment restrictions-Less exposure to country risks-Potential loss of contro
17、l over intellectual property1-23Governance of the MNC1-24Claims on corporate revenues VEXPENSES+VGOVT+VDEBT+VEQUITY+VOTHER VREVENUESEXPENSESGOVTOTHERDEBTEQUITYREVENUES1-25Multinational corporate strategyInvest in core competencies-Core competencies are the things that a corporation does well-Core competencies derive from people and processes-The MNC must leverage its core competencies into new products and technologies