《跨国公司财务管理讲义.ppt》由会员分享，可在线阅读，更多相关《跨国公司财务管理讲义.ppt（96页珍藏版）》请在三一办公上搜索。
1、跨国公司财务管理,艾伦.C.夏皮罗(Alan C.Shapiro)著赵锡军 编审顾苏秦 译校,PART I ENVIRONMENT OF INTERNATIONAL FINANCIAL MANAGEMENT,CHAPTER 1 INTRODUCTION:MULTINATIONAL ENTERPRISE AND MULTINATIONAL FINANCIAL MANAGEMENT,Learning Objectives,To understand the nature and benefits of globalization To explain why multinational corpo
2、rations are the key players in international economic competition today To classify the three historical types of multinational corporation(MNC)and explain their motivations for international expansion To explain why managers of MNCs need to exploit rapidly changing global economic conditions and wh
3、y political policy makers must also be concerned with the same changing conditions,Learning Objectives,To identify the advantages of being multinational,including the benefits of international diversification To describe the general importance of financial economics to multinational financial manage
4、ment and the particular importance of the concepts of arbitrage,market efficiency,capital asset pricing,and total risk To characterize the global financial marketplace and explain why MNC managers must be alert to capital market imperfections and asymmetries in tax regulations,1.1 THE RISE OF THE MU
5、LTINATIONAL CORPORATION,A multinational corporation(MNC)is a company engaged in producing and selling goods or services in more than one country.A brief taxonomy of the MNC and its evolution Raw-Materials Seekers.Raw-materials seekers were the earliest multinationals,the villains of international bu
6、siness.Market Seekers.The market seeker is the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.Cost Minimizers.These firms seek out and invest in lower cost production sites overseas(for example,Hong Kong,Taiwan,and Ireland)to remain cost-competit
7、ive both at home and abroad.,1.1 THE RISE OF THE MULTINATIONAL CORPORATION,the true multinational corporation is characterized more by its state of mind than by the size and worldwide dispersion of its assets.the essential element that distinguishes the true multinational is its commitment to seekin
8、g out,undertaking,and integrating manufacturing,marketing,R&D,and financing opportunities on a global,not domestic,basis.In a world in which change is the rule and not the exception,the key to international competitiveness is the ability of management to adjust to change and volatility at an ever fa
9、ster rate.New global manager is needed.,1.2 THE INTERNATIONALIZATION OF BUSINESS AND FINANCE,The existence of global competition and global markets for goods,services,and capital is a fundamental economic reality that has altered the behavior of companies and governments worldwide.Politicians and la
10、bor leaders,unlike corporate leaders,usually take a more parochial view of globalization.International economic integration reduces the freedom of governments to determine their own economic policy.The stresses caused by global competition have stirred up protectionists and given rise to new concern
11、s about the consequences of free trade.The U.S.Canada trade agreement;the North American Free Trade Agreement(NAFTA),1.3 MULTINATIONAL FINANCIAL MANAGEMENT:THEORY AND PRACTICE,The main objective of multinational financial management is to maximize shareholder wealth as measured by share price.Shareh
12、olders are the legal owners of the firm and management has a fiduciary obligation to act in their best interests.Financial management is traditionally separated into two basic functions:the acquisition of funds(financing decision)and the investment of those funds(investment decision).The risks of mu
13、ltinational management include exchange and inflation risks;international differences in tax rates;multiple money markets,often with limited access;currency controls;and political risks,such as sudden or creeping expropriation.The most advantage of MNC is the international diversification of markets
14、 and production sites.,1.3 MULTINATIONAL FINANCIAL MANAGEMENT:THEORY AND PRACTICE,Some concepts of financial economics:ArbitrageMarket efficiencyCapital Asset PricingRisk classification,1.4 OUTLINE OF THE BOOK,This book is divided into five parts.Part I:Environment of International Financial Managem
15、ent Part II:Foreign Exchange Risk ManagementPart III:Financing the Multinational Corporation Part IV:Foreign Investment Analysis Part V:Multinational Working Capital Management,PART I ENVIRONMENT OF INTERNATIONAL FINANCIAL MANAGEMENT,CHAPTER 2THE FUNDAMENTAL OF INTERNATIONAL FINANCE,Learning Objecti
16、ves,To explain the concept of an equilibrium exchange rate To identify the basic factors affecting exchange rates in a floating exchange rate system To calculate the amount of currency appreciation or depreciation associated with a given exchange rate change To distinguish between a free float,a man
17、aged float,a target-zone arrangement,and a fixed-rate system of exchange rate determination To distinguish between the current account,the financial account,and the official reserves account and describe the links among these accounts,2.1 SETTING THE EQUILIBRIUM SPOT EXCHANGE RATE,Exchange rates can
18、 be for spot or forward delivery.A spot rate is the price at which currencies are traded for immediate delivery,or in two days in the interbank market.A forward rate is the price at which foreign exchange is quoted for delivery at a specified future date.The exchange rates are market-clearing prices
19、 that equilibrate supplies and demands in the foreign exchange market.,2.1 SETTING THE EQUILIBRIUM SPOT EXCHANGE RATE,Factors that Affect the Equilibrium Exchange Rate:As the supply and demand schedules for a currency change over time,the equilibrium exchange will also change.Relative Inflation Rate
20、sRelative Interest RatesRelative Economic Growth RatesPolitical and Economic RiskExpectation and Asset Market modelCalculating Exchange Rate Change,2.2 ALTERNATIVE EXCHANGE RATE SYSTEMS,The international monetary system refers primarily to the set of policies,institutions,practices,regulations,and m
21、echanisms that determine the rate at which one currency is exchanged for another.This section considers five market mechanisms for establishing exchange rates:free floatmanaged floattarget-zone arrangementfixed-rate systemthe current hybrid system.,2.3 BALANCE-OF-PAYMENT CATEGORIES,The balance of pa
22、yment is an accounting statement that summarizes all the economic transactions between residents of the home country and the residents of all other countries.Currency inflows are recorded as credits,and outflows are recorded as debits.There are three principal balance-of-payments categories:1.Curren
23、t account2.Capital account3.Financial accountFor most countries,only the current and financial accounts are significant.,PART I ENVIRONMENT OF INTERNATIONAL FINANCIAL MANAGEMENT,CHAPTER 3 COUNTRY RISK ANALYSIS,Learning Objectives,To define what country risk means from the standpoint of an MNC To des
24、cribe the social,cultural,political,and economic factors that affect the general level of risk in a country and identify key indicators of country risk and economic health To describe what we can learn about economic development from the contrasting experiences of a variety of countries To describe
25、the economic and political factors that determine a countrys ability and willingness to repay its foreign debts,3.1 MEASURING POLITICAL RISK,Expropriation is the most obvious and extreme form of political risk,.There are other significant political risks,including currency or trade controls,changes
26、in tax or labor laws,regulatory restrictions,and requirements for additional local production.Factors in political risk forecasting modelPolitical StabilityEconomic FactorsSubjective FactorsPolitical Risk and Uncertain Property RightsA useful indicator of the degree of political risk is the seriousn
27、ess of capital flight.,3.2 ECONOMIC AND POLITICAL FACTORS UNDERLYING COUNTRY RISK,key factors that determine the economic performance of a country and its degree of riskFiscal IrresponsibilityMonetary InstabilityControlled Exchange Rate SystemWasteful Government SpendingResource BaseCountry Risk and
28、 Adjustment to External ShocksKey Indicators of Country Risk and Economic Health,3.3 COUNTRY RISK ANALYSIS IN INTERNATIONAL BANKING,From a banks standpoint,country risk is the possibility that borrowers in a country will be unable or unwilling to service or repay their debts to foreign lenders in a
29、timely manner.What ultimately determines a nations ability to repay foreign loans is that nations ability to generate U.S.dollars and other hard currencies.The Governments Cost/Benefit CalculusLessons from the International Debt Crisis,PART II FOREIGN EXCHANGE RISK MANAGEMENT,CHAPTER 4 MEASURING AND
30、 MANAGING TRANSLATION AND TRANSACTION EXPOSURE,Learning Objectives,To define translation and transaction exposure and operating exposure,distinguish them.To describe the four principal currency translation methods available and to calculate translation exposure using these different methods To ident
31、ify the basic hedging strategy and techniques used by firms to manage their currency transaction and translation risks To describe the costs and benefit associated with using the different hedging techniques To describe and assess the economic soundness of the various corporate hedging objectives,4.
32、1 ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE,The three basic types of exposure are translation exposure,transaction exposure,and operating exposure.Transaction exposure and operating exposure combine to form economic exposure.Translation exposure,also known as accounting exposure,arises from
33、the need,for purposes of reporting and consolidation,to convert the financial statements of foreign operations from the local currencies(LC)involved to the home currency(HC).Transaction exposure results from transactions that give rise to known,contractually binding future foreign-currency-denominat
34、ed cash inflows or outflows.Operating exposure measures the extent to which currency fluctuations can alter a companys future operating cash flows,that is,its future revenues and costs.,4.2 ALTERNATIVE CURRENCY TRANSLATION METHODS,Companies with international operations will have foreign-currency-de
35、nominated assets and liabilities,revenues,and expenses.The financial statements of an MNCs overseas subsidiaries must be translated from local currency to home currency before consolidation with the parents financial statements.Four principal translation methods are available:the current/noncurrent
36、method,the monetary/nonmonetary method,the temporal method,and the current rate method.In practice,there are also variations of each method.,4.2 ALTERNATIVE CURRENCY TRANSLATION METHODS,Current/Noncurrent methodall the foreign subsidiarys current assets and liabilities are translated into home curre
37、ncy at the current exchange rate.Each noncurrent asset or liability is translated at its historical exchange ratethat is,at the rate in effect at the time the asset was acquired or the liability was incurred.The income statement is translated at the average exchange rate of the period,except for tho
38、se revenues and expense items associated with noncurrent assets or libilities.,4.2 ALTERNATIVE CURRENCY TRANSLATION METHODS,Monetary/Nonmonetary MethodMonetary items(for example,cash,accounts payable and receivable,and long-term debt)are translated at the current rate;nonmonetary items(for example,i
39、nventory,fixed assets,and long-term investments)are translated at historical rates.Income statement items are translated at the average exchange rate during the period,except for revenue and expense items related to nonmonetary assets and liabilities.,4.2 ALTERNATIVE CURRENCY TRANSLATION METHODS,Tem
40、poral MethodUnder the temporal method,inventory is normally translated at the historical rate,but it can be translated at the current rate if the inventory is shown on the balance sheet at market values.in the temporal method,it is based on the underlying approach to evaluating cost(historical versu
41、s market).Income statement items normally are translated at an average rate for the reporting period.Current Rate MethodThe current rate method is the simplest:All balance sheet and income items are translated at the current rate.,4.4 DESIGNING A HEDGING STRATEGY,Hedging a particular currency exposu
42、re means establishing an offsetting currency position so as to lock in a dollar(home currency)value for the currency exposure and thereby eliminate the risk posed by currency fluctuations.The usefulness of a particular hedging strategy depends on both acceptability and quality.The objectives in mana
43、gement bahaviorMinimize translation exposure;Minimize earnings fluctuations owing to exchange rate changes;Minimize transaction exposure;Minimize economic exposure;Minimize foreign exchange risk management costs;Avoid surprises,4.4 DESIGNING A HEDGING STRATEGY,Costs and Benefits of Standard Hedging
44、TechniquesExposure NettingExposure netting involves offsetting exposures in one currency with exposures in the same or another currency,where exchange rates are expected to move in a way such that losses(gains)on the first exposed position will be offset by gains(losses)on the second currency exposu
45、re.Accounting for Hedging and FASB 133,4.5 MANAGING TRANSLATION EXPOSURE,Firms have three available methods for managing their translation exposure:(1)adjusting fund flows,(2)entering into forward contracts,and(3)exposure netting.Funds adjustment involves altering either the amounts or the currencie
46、s(or both)of the planned cash flows of the parent or its subsidiaries to reduce the firms local currency accounting exposure.Evaluating Alternative Hedging MechanismsOrdinarily,the selection of a funds-adjustment strategy cannot proceed by evaluating each possible technique separately without riskin
47、g suboptimization.,4.6 MANAGING TRANSACTION EXPOSURE,Various techniques for managing transaction exposureForward Market HedgeMoney-Market HedgeRisk shiftingPricing DecisionExposure nettingCurrency Risk SharingCurrency CollarsCross-HedgingForeign Currency Options,PART II FOREIGN EXCHANGE RISK MANAGEM
48、ENT,CHAPTER 5 MEASURING AND MANAGING ECONOMIC EXPOSURE,Learning Objectives,To define economic exposure and exchange risk and distinguish between the two To define operating exposure and distinguish between it and transaction exposure To identify the basic factors that determine the foreign exchange
49、risk faced by a particular company or project To describe the marketing,production,and financial strategies that are appropriate for coping with the economic consequences of exchange rate changes To explain how companies can develop contingency plans to cope with exchange risk and the consequences o
50、f their ability to rapidly respond to currency changes To identify the role of the financial executive in facilitating the operation of an integrated exchange risk management program,5.1 FOREIGN EXCHANGE RISK AND ECONOMIC EXPOSURE,The most important aspect of foreign exchange risk management is to i
