Chap001尤恩國際財(cái)務(wù)管理英文第五版[共43頁]

1、Globalization and the Multinational Firm,Chapter One,Whats Special about “International” Finance? Goals for International Financial Management Globalization of the World Economy Multinational Corporations Organization of the Text Summary,Chapter One Outline,why we study this course,We are now living

2、 in a highly globalized and integrated world economy,Globalization of the World Economy,Consumption globalization Production globalization Emergence of Globalized Financial Markets Your opinion: trend of Globalization? 討論：在你的身邊有哪些事情，哪些現(xiàn)象讓你感受到了你生活在一個(gè)全球化的時(shí)代,Whats Special about “International” Finance,

3、Foreign Exchange Risk Political Risk Market Imperfections Expanded Opportunity Set,Whats Special about “International” Finance,Foreign Exchange Risk This is risk that foreign currency profits may evaporate in dollar terms due to unanticipated unfavorable exchange rate movements. Suppose $1 = 100 and

4、 you buy 10 shares of Toyota at 10,000 per share. One year later the investment is worth ten percent more in yen: 110,000. But, if the yen has depreciated to $1 = 120, your investment has actually lost money in dollar terms,例如：波音公司與法國航空公司簽訂了一份出售一架波音737飛機(jī)的合約。法航1年后將支付2000萬歐元。目前的即期匯率是1.05美元/歐元，1年后的遠(yuǎn)期匯率

5、是1.10美元/歐元。美國年利率為6%，法國為5%。波音公司非常關(guān)注美元兌歐元匯率的變化，希望對外匯風(fēng)險(xiǎn)套期保值。 （1）考慮兩種套期保值的方案：用遠(yuǎn)期合約賣出未來的歐元收入，或從里昂信貸公司借入應(yīng)收回的歐元數(shù)。你會選擇哪一種？為什么？請寫出計(jì)算過程。 （2）如果其他條件相同，遠(yuǎn)期匯率為多少時(shí)兩種方案沒有區(qū)別,Whats Special about “International” Finance,Political Risk Sovereign governments have the right to regulate the movement of goods, capital, and

6、people across their borders. These laws sometimes change in unexpected ways,Market Imperfections Legal restrictions on the movement of goods, people, and money Transactions costs Shipping costs Tax arbitrage,Whats Special about “International” Finance,The Example of Nestls Market Imperfection,Nestl

7、used to issue two different classes of common stock bearer shares and registered shares. Foreigners were only allowed to buy bearer shares. Swiss citizens could buy registered shares. The bearer stock was more expensive. On November 18, 1988, Nestl lifted restrictions imposed on foreigners, allowing

8、 them to hold registered shares as well as bearer shares,Nestls Foreign Ownership Restrictions,Source: Financial Times, November 26, 1988 p.1. Adapted with permission,SF,The Example of Nestls Market Imperfection,Following this, the price spread between the two types of shares narrowed dramatically.

9、This implies that there was a major transfer of wealth from foreign shareholders to Swiss shareholders. Foreigners holding Nestl bearer shares were exposed to political risk in a country that is widely viewed as a haven from such risk. The Nestl episode illustrates both the importance of considering

10、 market imperfections and the peril of political risk,Expanded Opportunity Set It doesnt make sense to play in only one corner of the sandbox. True for corporations as well as individual investors,Whats Special about “International” Finance,The focus of the text is to equip the reader with the “inte

11、llectual toolbox” of an effective global managerbut what goal should this effective global manager be working toward? Maximization of shareholder wealth? or Other goals,Goals for International Financial Management,Maximize Shareholder Wealth,Long accepted as a goal in the Anglo-Saxon countries, but

12、complications arise. Who are and where are the shareholders? In what currency should we maximize their wealth,Other Goals,In other countries shareholders are viewed as merely one among many “stakeholders” of the firm including: Employees Suppliers Customers In Japan, managers have typically sought t

13、o maximize the value of the keiretsua family of firms to which the individual firms belongs,Other Goals,As shown by a series of recent corporate scandals at companies like Enron, WorldCom, and Global Crossing, managers may pursue their own private interests at the expense of shareholders when they a

14、re not closely monitored. These calamities have painfully reinforced the importance of corporate governance, i.e., the financial and legal framework for regulating the relationship between a firms management and its shareholders,Other Goals,These types of issues can be much more serious in many othe

15、r parts of the world, especially emerging and transitional economies, such as Indonesia, Korea, and Russia, where legal protection of shareholders is weak or virtually non-existing. No matter what the other goals, they cannot be achieved in the long term if the maximization of shareholder wealth is

16、not given due consideration,Globalization of the World Economy: Major Trends and Developments,Emergence of Globalized Financial Markets Emergence of the Euro as a Global Currency Europes Sovereign Debt Crisis of 2010 Trade Liberalization and Economic Integration Privatization Global Financial Crisis

17、 of 2008-2009,Deregulation of Financial Markets coupled with Advances in Technology have greatly reduced information and transaction costs, which has led to: Financial Innovations, such as Currency futures and options Multi-currency bonds Cross-border stock listings International mutual funds,Emerge

18、nce of Globalized Financial Markets,Emergence of the Euro as a Global Currency,A momentous event in the history of world financial systems. Currently more than 300 million Europeans in 16 countries are using the common currency on a daily basis. In May 2004, 10 more countries joined the European Uni

19、on. The “transaction domain” of the euro may become larger than the U.S. dollars in the near future,Euro Area,Austria Belgium Cyprus Finland France Germany Greece,Ireland Italy Luxembourg Malta The Netherlands Portugal Slovenia Slovakia Spain,Value of the Euro in U.S. Dollars,Europes Sovereign-Debt

20、Crisis of 2010,In December of 2009 the new Greek government revealed that its budget deficit for the year would be 12.7% of GDP, not the 3.7% forecast. Investors sold off Greek government bonds and the ratings agencies downgraded them to “junk.” While Greece represents only 2.5% of euro-zone GDP, th

21、e crisis became a Europe-wide debt crisis. The challenge remains that fiscal indiscipline of one euro-zone country can escalate to a Europe-wide crisis,The Greek Drama,Greece paid no premium above the German rate until late fall 2009. The Greek interest rate rose until the bailout package on May 9,E

22、conomic Integration,Over the past 50 years, international trade increased about twice as fast as world GDP. There has been a change in the attitudes of many of the worlds governments, who have abandoned mercantilist views and embraced free trade as the surest route to prosperity for their citizenry,

23、Liberalization of Protectionist Legislation,The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement among member countries that has reduced many barriers to trade. The World Trade Organization has the power to enforce the rules of international trade. On January 1, 2005, the er

24、a of quotas on imported textiles ended. This is an event of historic proportions,NAFTA,The North American Free Trade Agreement (NAFTA) calls for phasing out impediments to trade between Canada, Mexico, and the United States over a 15-year period beginning in 1994. For Mexico, the ratio of export to

25、GDP has increased dramatically from 2.2% in 1973 to 29% in 2006. The increased trade has resulted in increased numbers of jobs and a higher standard of living for all member nations,Privatization,The selling of state-run enterprises to investors is also known as “denationalization.” Privatization is

26、 often seen in socialist economies in transition to market economies. By most estimates, this increases the efficiency of the enterprise. It also often spurs a tremendous increase in cross-border investment,Chinese Privatization,State-owned enterprises have been listed on organized stock exchanges.

27、More than 1,500 companies are currently listed on Chinas stock exchanges. The Chinese government still retains the majority stakes in most public firms. Chinese citizens can buy “A” shares, while foreigners are limited to “B” shares,Global Financial Crisis of 20082009,The “Great Recession” was the m

28、ost serious, synchronized economic downturn since the Great Depression of the 1930s. Factors included: Households and financial institutions borrowed too much and took too much risk. This risk was repackaged with securitization, and so defaults on subprime mortgages in the U.S. came to threaten the

29、solvency of a teachers retirement plans in Norway,Global Financial Crisis 20082009,During the course of the crisis, the G-20 emerged as the premier forum for discussing international economic issues and coordinating financial regulations and macroeconomic policies,Multinational Corporations,A multin

30、ational corporation (MNC) is a firm that has been incorporated in one country and has production and sales operations in other countries. There are about 60,000 MNCs in the world. Many MNCs obtain raw materials from one nation, financial capital from another, produce goods with labor and capital equ

31、ipment in a third country, and sell their output in various other national markets,Top 10 MNCs,The following slides cover the appendix to Chapter 1,A comparative advantage exists when one party can produce a good or service at a lower opportunity cost than another party. The opportunity cost of making one additional unit of a good (or service) can be defined as the value of some other good that you have to give up in order to produce this additional unit. For example, if you can work as many hours as you like at your