Chapter2InternationalFlowofFunds(國際資金流動)

1、廣東工業(yè)大學(xué)管理學(xué)院International Corporate Finance廣東工業(yè)大學(xué)管理學(xué)院International Flow of Funds2 Chapter廣東工業(yè)大學(xué)管理學(xué)院學(xué)習(xí)目標(biāo)To explain the key components of the balance of payments (國際收支平衡表）; To explain how the international flow of funds is influenced by economic factors and other factors.廣東工業(yè)大學(xué)管理學(xué)院1. Balance of Payments

2、Definition: Summary of transactions between domestic and foreign residents for a specific country over a specified period of time.廣東工業(yè)大學(xué)管理學(xué)院1. Balance of Payments Components of the Balance of Payments Statement: a. 經(jīng)常項目（Current Account）: summary of flow of funds due to purchases of goods or services

3、 or the provision of income on financial assets. b. 資本項目（Capital Account）: summary of flow of funds resulting from the sale of assets between one specified country and all other countries over a specified period of time.廣東工業(yè)大學(xué)管理學(xué)院Tips:如果引起資金流出本國，比如說商品或者服務(wù)的進(jìn)口以及向外國居民支付工資，則計入借方；反之計入貸方 Out-debit（借） In-c

4、redit（貸） Balance（余額）=credit-debit廣東工業(yè)大學(xué)管理學(xué)院1.1 Current Account 1.Payments for merchandise and services Merchandise exports and imports represent tangible products that are transported between countries. Service exports and imports represent tourism and other services. The difference between total ex

5、ports and imports is referred to as the balance of trade. 2.Factor income payments Represents income (interest and dividend payments) received by investors on foreign investments in financial assets (securities). 3.Transfer payments廣東工業(yè)大學(xué)管理學(xué)院Examples of Current Account Transactions廣東工業(yè)大學(xué)管理學(xué)院Summary

6、of Current Account in the year 2010 (billions)廣東工業(yè)大學(xué)管理學(xué)院1.2 Capital and Financial Accounts 1.Direct foreign investment Investments in fixed assets in foreign countries 2.Portfolio investment Transactions involving long term financial assets (such as stocks and bonds) between countries that do not af

7、fect the transfer of control. 3.Other capital investment Transactions involving short-term financial assets (such as money market securities) between countries. 4.Errors and omissions Measurement errors can occur when attempting to measure the value of funds transferred into or out of a country. 廣東工

8、業(yè)大學(xué)管理學(xué)院2. Factors Affecting International Trade FlowsLabor cost Firms in countries where labor costs are low commonly have an advantage when competing globally, especially in labor intensive industries Inflation A relative increase in a countrys inflation rate will decrease its current account, as i

9、mports increase and exports decrease.National Income A relative increase in a countrys income level will decrease its current account, as imports increase.廣東工業(yè)大學(xué)管理學(xué)院4.Government Policies: a.Restrictions on imports b.Subsidies for exporters c.Lack of Restriction on piracy d. Labor laws e. Tax breaks

10、f. Country security laws5.Exchange Rates: current account decreases if currency appreciates relative to other currencies.2. Factors Affecting International Trade Flows廣東工業(yè)大學(xué)管理學(xué)院3. Correcting A Balance of Trade DeficitBy reconsidering the factors that affect the balance of trade, some common correcti

11、on methods can be developed.For example, a floating exchange rate system may correct a trade imbalance automatically since the trade imbalance will affect the demand and supply of the currencies involved.廣東工業(yè)大學(xué)管理學(xué)院However, a weak home currency may not necessarily correct a trade deficit（貿(mào)易赤字）.1)Coun

12、terpricing（反向調(diào)價） by competitors. Foreign companies may lower their prices to maintain their competitiveness.2)impact of other weak currencies Some other currencies may weaken too.3) intracompany trade（內(nèi)部交易) The impact of exchange rate movements on intracompany trade is limited.Why a weak currency is

13、 not a perfect solution?廣東工業(yè)大學(xué)管理學(xué)院4) J-curve effect（J曲線效應(yīng)） Many trade transactions are prearranged and cannot be adjusted immediately. This is known as the J-curve effect.廣東工業(yè)大學(xué)管理學(xué)院Capital flows usually represent portfolio investment and direct foreign investment.4. International Capital Flows廣東工業(yè)大學(xué)

14、管理學(xué)院Factors Affecting DFIChanges in Restrictions New opportunities may arise from the removal of government barriers.Privatization(私有化） DFI has also been stimulated by the selling of government operations.Potential Economic Growth Countries with higher potential economic growth are more likely to at

15、tract DFI.廣東工業(yè)大學(xué)管理學(xué)院Tax Rates Countries that impose relatively low tax rates on corporate earnings are more likely to attract DFI.Exchange Rates Firms will typically prefer to invest their funds in a country when that countrys currency is expected to strengthen.Factors Affecting DFI廣東工業(yè)大學(xué)管理學(xué)院Factors

16、 Affecting International Portfolio InvestmentTax Rates on Interest or Dividends Investors will normally prefer countries where the tax rates are relatively low.Interest Rates Money tends to flow to countries with high interest rates, as long as the local currencies are not expected to weaken.Exchang

17、e Rates Foreign investors may be attracted if the local currency is expected to strengthen.廣東工業(yè)大學(xué)管理學(xué)院International Monetary Fund (IMF) The IM F is an organization of 183 member countries. Established in 1946.1.Major Objectives of the IMF 1).promote cooperation among countries on international moneta

18、ry issues, 2).promote stability in exchange rates 3).provide temporary funds to member countries attempting to correct imbalances of international payments 4).promote free mobility of capital funds across countries 5).promote free trade. 5. Agencies that Facilitate International Flows廣東工業(yè)大學(xué)管理學(xué)院Inter

19、national Monetary Fund (IMF)2.Its compensatory financing facility (CFF) attempts to reduce the impact of export instability on countries.3.Financing is measured in special drawing rights (SDRs)You may learn more about the IMF at .5. Agencies that Facilitate International Flows廣東工業(yè)大學(xué)

20、管理學(xué)院The weights assigned to the currencies in the SDR basket are as follows:Currency2001 Revision1996 RevisionU.S. dollar4539Euro29 Deutsche mark21 French franc11Japanese yen1518Pound sterling1111International Monetary Fund (IMF)5. Agencies that Facilitate International Flows廣東工業(yè)大學(xué)管理學(xué)院World Bank Gro

21、up（也叫國際復(fù)興與開發(fā)銀行）1.Major Objective-Make loans to countries to enhance economic development.2.Structural Adjustment Loans (SALs) are intended to enhance a countrys long-term economic growth.3.Funds are distributed through cofinancing agreements:Official aid agenciesExport credit agenciesCommercial bank

22、s 5. Agencies that Facilitate International Flows廣東工業(yè)大學(xué)管理學(xué)院IFC: （國際金融公司）1.Major Objective -promote private enterprise within countries.2.Provides loans to corporations and purchases stock3.It traditionally has obtained financing from the World Bank but can borrow in the international financial marke

23、ts.5. Agencies that Facilitate International Flows廣東工業(yè)大學(xué)管理學(xué)院IDA: （國際開發(fā)協(xié)會）IDA was set up in 1960 as an agency that lends to the very poor developing nations on highly concessional terms.IDA lends only to those countries that lack the financial ability to borrow from IBRD.IBRD and IDA are run on the s

24、ame lines, sharing the same staff, headquarters and project evaluation standards.5. Agencies that Facilitate International Flows廣東工業(yè)大學(xué)管理學(xué)院To learn more about the World Bank Group and its organizations, visit: /ibrd /ida http:/www.

25、 /icsidOnline Application廣東工業(yè)大學(xué)管理學(xué)院World Trade Organization (WTO 世界貿(mào)易組織)Created in 1995, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT 關(guān)稅與貿(mào)易總協(xié)定).1.Major Objective -Provide a forum for multilateral trade negotiations and

26、to settle trade disputes related to the GATT accord.2.Member countries are given voting rights that are used to make judgments about trade disputes and other issues.5. Agencies that Facilitate International Flows廣東工業(yè)大學(xué)管理學(xué)院BIS: Bank for International Settlements1.Major Objectives -facilitate cooperation among countries with regard to international transactions.2.Provides assistance to countries experiencing a financial crisis. 3.Sometimes referred to as the “central banks central bank” or the “l(fā)ender of last resort.”5. Agencies that Facilita