國際財務管理(第五版)習題解答

1、本文格式為Word版，下載可任意編輯 國際財務管理(第五版)習題解答 CHAPTER 1 GLOBALIZATION AND THE MULTINATIONAL FIRM SUGGESTED ANSWERS TO END-OF-CHAPTER QUESTIONS QUESTIONS 1. Why is it important to study international financial management? Answer: We are now living in a world where all the major economic functions, i.e., consump

2、tion, production, and investment, are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance som

3、e twenty years ago. At that time, most professors customarily (and safely, to some extent) ignored international aspects of finance. This mode of operation has become untenable since then. 2. How is international financial management different from domestic financial management? Answer: There are th

4、ree major dimensions that set apart international finance from domestic finance. They are: 1. foreign exchange and political risks, 2. market imperfections, and 3. expanded opportunity set. 3. Discuss the three major trends that have prevailed in international business during the last two decades. A

5、nswer: The 1980s brought a rapid integration of international capital and financial markets. Impetus for globalized financial markets initially came from the governments of major countries that had begun to deregulate their foreign exchange and capital markets. The IM-1 economic integration and glob

6、alization that began in the eighties is picking up speed in the 1990s via privatization. Privatization is the process by which a country pests itself of the ownership and operation of a business venture by turning it over to the free market system. Lastly, trade liberalization and economic integrati

7、on continued to proceed at both the regional and global levels. IM-2 4. How is a country?s economic well-being enhanced through free international trade in goods and services? Answer: According to David Ricardo, with free international trade, it is mutually beneficial for two countries to each speci

8、alize in the production of the goods that it can produce relatively most efficiently and then trade those goods. By doing so, the two countries can increase their combined production, which allows both countries to consume more of both goods. This argument remains valid even if a country can produce

9、 both goods more efficiently than the other country. International trade is not a zero-sum? game in which one country benefits at the expense of another country. Rather, international trade could be an increasing-sum? game at which all players become winners. 5. What considerations might limit the e

10、xtent to which the theory of comparative advantage is realistic? Answer: The theory of comparative advantage was originally advanced by the nineteenth century economist David Ricardo as an explanation for why nations trade with one another. The theory claims that economic well-being is enhanced if e

11、ach country?s citizens produce what they have a comparative advantage in producing relative to the citizens of other countries, and then trade products. Underlying the theory are the assumptions of free trade between nations and that the factors of production (land, buildings, labor, technology, and

12、 capital) are relatively immobile. To the extent that these assumptions do not hold, the theory of comparative advantage will not realistically describe international trade. 6. What are multinational corporations (MNCs) and what economic roles do they play? Answer: A multinational corporation (MNC)

13、can be defined as a business firm incorporated in one country that has production and sales operations in several other countries. Indeed, some MNCs have operations in dozens of different countries. MNCs obtain financing from major money centers around the world in many different currencies to finan

14、ce their operations. IM-3 Global operations force the treasurer?s office to establish international banking relationships, to place short-term funds in several currency denominations, and to effectively manage foreign exchange risk. IM-4 7. Mr. Ross Perot, a former Presidential candidate of the Refo

15、rm Party, which is a third political party in the United States, had strongly objected to the creation of the North American Trade Agreement (NAFTA), which nonetheless was inaugurated in 1994, for the fear of losing American jobs to Mexico where it is much cheaper to hire workers. What are the merit

16、s and demerits of Mr. Perot?s position on NAFTA? Considering the recent economic developments in North America, how would you assess Mr. Perot?s position on NAFTA? Answer: Since the inception of NAFTA, many American companies indeed have invested heavily in Mexico, sometimes relocating production fr

17、om the United States to Mexico. Although this might have temporarily caused unemployment of some American workers, they were eventually rehired by other industries often for higher wages. Currently, the unemployment rate in the U.S. is quite low by historical standard. At the same time, Mexico has b

18、een experiencing a major economic boom. It seems clear that both Mexico and the U.S. have benefited from NAFTA. Mr. Perot?s concern appears to have been ill founded. 8. In 1995, a working group of French chief executive officers was set up by the Confederation of French Industry (CNPF) and the Frenc

19、h Association of Private Companies (AFEP) to study the French corporate governance structure. The group reported the following, among other things “The board of directors should not simply aim at maximizing share values as in the U.K. and the U.S. Rather, its goal should be to serve the company, who

20、se interests should be clearly distinguished from those of its shareholders, employees, creditors, suppliers and clients but still equated with their general common interest, which is to safeguard the prosperity and continuity of the company. Evaluate the above recommendation of the working group. A

21、nswer: The recommendations of the French working group clearly show that shareholder wealth maximization is not a universally accepted goal of corporate management, especially outside the United States and possibly a few other Anglo-Saxon countries including the United Kingdom and Canada. To some ex

22、tent, this may reflect the fact that share ownership is not wide spread in most other countries. In France, about 15% of households own shares. IM-5 IM-6 9. Emphasizing the importance of voluntary compliance, as opposed to enforcement, in the aftermath of corporate scandals, e.g., Enron and WorldCom

23、, U.S. President George W. Bush stated that while toug her laws might help, “ultimately, the ethics of American business depends on the conscience of America?s business leaders. Describe your view on this statement. Answer: There can be different answers to this question. If business leaders always

24、behave with a high ethical standard, many of the corporate scandals we have seen lately might not have happened. Since we cannot fully depend on the ethical behavior on the part of business leaders, the society should protect itself by adopting the rules/regulations and governance structure that would induce business leaders to behave in the interest of the society at large. 10. Suppose you are interested in investing in shares of Nokia Corporation of Finland, which is a world leader in wireless communica