跨国公司财务管理培训课程(PPT 96页).pptx

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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 corpora

2、tions 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 why

3、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 manageme

4、nt 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 regulations1.1 THE RISE OF THE MULTI

5、NATIONAL CORPORATIONnA multinational corporation(MNC)is a company engaged in producing and selling goods or services in more than one country.nA brief taxonomy of the MNC and its evolution nRaw-Materials Seekers.Raw-materials seekers were the earliest multinationals,the villains of international bus

6、iness.nMarket Seekers.The market seeker is the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.nCost Minimizers.These firms seek out and invest in lower cost production sites overseas(for example,Hong Kong,Taiwan,and Ireland)to remain cost-competi

7、tive both at home and abroad.1.1 THE RISE OF THE MULTINATIONAL CORPORATIONnthe true multinational corporation is characterized more by its state of mind than by the size and worldwide dispersion of its assets.nthe essential element that distinguishes the true multinational is its commitment to seeki

8、ng out,undertaking,and integrating manufacturing,marketing,R&D,and financing opportunities on a global,not domestic,basis.nIn 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

9、faster rate.nNew global manager is needed.1.2 THE INTERNATIONALIZATION OF BUSINESS AND FINANCEnThe 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.nPoliticians and

10、 labor leaders,unlike corporate leaders,usually take a more parochial view of globalization.nInternational economic integration reduces the freedom of governments to determine their own economic policy.nThe stresses caused by global competition have stirred up protectionists and given rise to new co

11、ncerns about the consequences of free trade.nThe U.S.Canada trade agreement;nthe North American Free Trade Agreement(NAFTA),1.3 MULTINATIONAL FINANCIAL MANAGEMENT:THEORY AND PRACTICE nThe main objective of multinational financial management is to maximize shareholder wealth as measured by share pric

12、e.nShareholders are the legal owners of the firm and management has a fiduciary obligation to act in their best interests.nFinancial management is traditionally separated into two basic functions:the acquisition of funds(financing decision)and the investment of those funds(investment decision).nThe

13、risks of multinational 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.nThe most advantage of MNC is the international diversificatio

14、n of markets and production sites.1.3 MULTINATIONAL FINANCIAL MANAGEMENT:THEORY AND PRACTICEnSome concepts of financial economics:nArbitragenMarket efficiencynCapital Asset PricingnRisk classification1.4 OUTLINE OF THE BOOKnThis book is divided into five parts.nPart I:Environment of International Fi

15、nancial Management nPart II:Foreign Exchange Risk ManagementnPart III:Financing the Multinational Corporation nPart IV:Foreign Investment Analysis nPart V:Multinational Working Capital ManagementPART I ENVIRONMENT OF INTERNATIONAL FINANCIAL MANAGEMENTCHAPTER 2THE FUNDAMENTAL OF INTERNATIONAL FINANCE

16、 Learning Objectives 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

17、 free float,a managed 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 accounts2.1 SETTING THE EQUILIBRIUM SPOT EXCHANGE RATEnEx

18、change rates can be for spot or forward delivery.nA spot rate is the price at which currencies are traded for immediate delivery,or in two days in the interbank market.nA forward rate is the price at which foreign exchange is quoted for delivery at a specified future date.nThe exchange rates are mar

19、ket-clearing prices that equilibrate supplies and demands in the foreign exchange market.2.1 SETTING THE EQUILIBRIUM SPOT EXCHANGE RATEnFactors that Affect the Equilibrium Exchange Rate:nAs the supply and demand schedules for a currency change over time,the equilibrium exchange will also change.nRel

20、ative Inflation RatesnRelative Interest RatesnRelative Economic Growth RatesnPolitical and Economic RisknExpectation and Asset Market modelnCalculating Exchange Rate Change2.2 ALTERNATIVE EXCHANGE RATE SYSTEMSnThe international monetary system refers primarily to the set of policies,institutions,pra

21、ctices,regulations,and mechanisms that determine the rate at which one currency is exchanged for another.nThis section considers five market mechanisms for establishing exchange rates:nfree floatnmanaged floatntarget-zone arrangementnfixed-rate systemnthe current hybrid system.2.3 BALANCE-OF-PAYMENT

22、 CATEGORIESnThe balance of payment is an accounting statement that summarizes all the economic transactions between residents of the home country and the residents of all other countries.nCurrency inflows are recorded as credits,and outflows are recorded as debits.nThere are three principal balance-

23、of-payments categories:n1.Current accountn2.Capital accountn3.Financial accountnFor most countries,only the current and financial accounts are significant.PART I ENVIRONMENT OF INTERNATIONAL FINANCIAL MANAGEMENTCHAPTER 3 COUNTRY RISK ANALYSISLearning Objectives To define what country risk means from

24、 the standpoint of an MNC To describe 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 v

25、ariety of countries To describe the economic and political factors that determine a countrys ability and willingness to repay its foreign debts3.1 MEASURING POLITICAL RISKnExpropriation is the most obvious and extreme form of political risk,.nThere are other significant political risks,including cur

26、rency or trade controls,changes in tax or labor laws,regulatory restrictions,and requirements for additional local production.nFactors in political risk forecasting modelnPolitical StabilitynEconomic FactorsnSubjective FactorsnPolitical Risk and Uncertain Property RightsnA useful indicator of the de

27、gree of political risk is the seriousness of capital flight.3.2 ECONOMIC AND POLITICAL FACTORS UNDERLYING COUNTRY RISKnkey factors that determine the economic performance of a country and its degree of risknFiscal IrresponsibilitynMonetary InstabilitynControlled Exchange Rate SystemnWasteful Governm

28、ent SpendingnResource BasenCountry Risk and Adjustment to External ShocksnKey Indicators of Country Risk and Economic Health3.3 COUNTRY RISK ANALYSIS IN INTERNATIONAL BANKINGnFrom a banks standpoint,country risk is the possibility that borrowers in a country will be unable or unwilling to service or

29、 repay their debts to foreign lenders in a timely manner.nWhat ultimately determines a nations ability to repay foreign loans is that nations ability to generate U.S.dollars and other hard currencies.nThe Governments Cost/Benefit CalculusnLessons from the International Debt CrisisPART II FOREIGN EXC

30、HANGE RISK MANAGEMENTCHAPTER 4 MEASURING AND MANAGING TRANSLATION AND TRANSACTION EXPOSURELearning 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 expo

31、sure using these different methods To identify 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

32、the various corporate hedging objectives4.1 ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSUREnThe three basic types of exposure are translation exposure,transaction exposure,and operating exposure.nTransaction exposure and operating exposure combine to form economic exposure.nTranslation exposure,al

33、so known as accounting exposure,arises from 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).nTransaction exposure results from transactions that give rise to known,contractua

34、lly binding future foreign-currency-denominated cash inflows or outflows.nOperating 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 METHODSnCompanies with internati

35、onal operations will have foreign-currency-denominated 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.nFour principal translation

36、 methods are available:nthe current/noncurrent method,nthe monetary/nonmonetary method,nthe temporal method,nand the current rate method.nIn practice,there are also variations of each method.4.2 ALTERNATIVE CURRENCY TRANSLATION METHODSnCurrent/Noncurrent methodnall the foreign subsidiarys current as

37、sets and liabilities are translated into home currency 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.nThe income statement is translated at th

38、e average exchange rate of the period,except for those revenues and expense items associated with noncurrent assets or libilities.4.2 ALTERNATIVE CURRENCY TRANSLATION METHODSnMonetary/Nonmonetary MethodnMonetary items(for example,cash,accounts payable and receivable,and long-term debt)are translated

39、 at the current rate;nonmonetary items(for example,inventory,fixed assets,and long-term investments)are translated at historical rates.nIncome statement items are translated at the average exchange rate during the period,except for revenue and expense items related to nonmonetary assets and liabilit

40、ies.4.2 ALTERNATIVE CURRENCY TRANSLATION METHODSnTemporal MethodnUnder 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.nin the temporal method,it is based on the u

41、nderlying approach to evaluating cost(historical versus market).nIncome statement items normally are translated at an average rate for the reporting period.nCurrent Rate MethodnThe current rate method is the simplest:All balance sheet and income items are translated at the current rate.4.4 DESIGNING

42、 A HEDGING STRATEGYnHedging a particular currency exposure 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.nThe usefulness of a particular hedging strategy depends

43、 on both acceptability and quality.nThe objectives in management bahaviornMinimize translation exposure;Minimize earnings fluctuations owing to exchange rate changes;Minimize transaction exposure;Minimize economic exposure;Minimize foreign exchange risk management costs;Avoid surprises4.4 DESIGNING

44、A HEDGING STRATEGYnCosts and Benefits of Standard Hedging TechniquesnExposure NettingnExposure 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

45、will be offset by gains(losses)on the second currency exposure.nAccounting for Hedging and FASB 1334.5 MANAGING TRANSLATION EXPOSUREnFirms have three available methods for managing their translation exposure:(1)adjusting fund flows,(2)entering into forward contracts,and(3)exposure netting.nFunds adj

46、ustment involves altering either the amounts or the currencies(or both)of the planned cash flows of the parent or its subsidiaries to reduce the firms local currency accounting exposure.nEvaluating Alternative Hedging MechanismsnOrdinarily,the selection of a funds-adjustment strategy cannot proceed

47、by evaluating each possible technique separately without risking suboptimization.4.6 MANAGING TRANSACTION EXPOSUREnVarious techniques for managing transaction exposurenForward Market HedgenMoney-Market HedgenRisk shiftingnPricing DecisionnExposure nettingnCurrency Risk SharingnCurrency CollarsnCross

48、-HedgingnForeign Currency OptionsPART II FOREIGN EXCHANGE RISK MANAGEMENTCHAPTER 5 MEASURING AND MANAGING ECONOMIC EXPOSURELearning Objectives To define economic exposure and exchange risk and distinguish between the two To define operating exposure and distinguish between it and transaction exposur

49、e To identify the basic factors that determine the foreign exchange 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

50、 contingency plans to cope with exchange risk and the consequences of 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 EXPOSUREnT