Đang chuẩn bị liên kết để tải về tài liệu:
Lecture Global financial management - Topic 1: Assessing and managing country risk

In this chapter, students will be able to understand: Define country risk and describe how it us used to make investment decisions from the standpoint of a multinational corporation (MNC), describe the political and economic factors used to measure country risk, describe country risk mitigation strategies, describe the opportunities of global investments. | Topic #1: Assessing and managing country risk L. Gattis 0 Global Financial Management Learning Objectives 1 Define country risk and describe how it us used to make investment decisions from the standpoint of a multinational corporation (MNC) Describe the political and economic factors used to measure country risk Describe country risk mitigation strategies Describe the opportunities of global investments Capital Budgeting 1 Country Risk Analysis 2 Country Risk Analysis is the assessment of potential investment or operating losses in a foreign country that arise from the political and economic environment. The term “political risk” is sometimes used to describe this risk, but country risk is a more general term for the risks of operating in a foreign market. Country Risk Analysis is used by Sovereign bond investors to assess default risk (ability and willingness to pay) Banks to determine where to lend, the currency to denominate the loans, and the interest rate on the loan Investment firms to evaluate currency and equity investments Multinational companies (MNCs) to assess the risk of operating in a country Global Opportunities 3 Obtain domestically scarce resources (extraction) Sell to new markets Lower production, distribution, servicing costs by outsourcing or foreign direct investment (FDI) FDI involves long term, active management Obtain global talent and ideas Tax/Regulatory Arbitrage Access to global capital Global diversification of revenue and costs Opportunities: Raw Material and Capital Goods 4 http://visual.ly/world-commodities-map 5 Opportunities: Consumers (Population) http://i.imgur.com/I81xSNt.png Opportunities: Consumers (Income) 6 Risk or Opportunity? Income Inequality 7 https://en.wikipedia.org/wiki/Gini_coefficient Manufacturing Cost Index (BCG) 8 https://www.bcgperspectives.com/content/interactive/lean_manufacturing_globalization_bcg_global_manufacturing_cost_competitiveness_index/ Opportunities: Outsource Manufacturing Hourly Compensation by . | Topic #1: Assessing and managing country risk L. Gattis 0 Global Financial Management Learning Objectives 1 Define country risk and describe how it us used to make investment decisions from the standpoint of a multinational corporation (MNC) Describe the political and economic factors used to measure country risk Describe country risk mitigation strategies Describe the opportunities of global investments Capital Budgeting 1 Country Risk Analysis 2 Country Risk Analysis is the assessment of potential investment or operating losses in a foreign country that arise from the political and economic environment. The term “political risk” is sometimes used to describe this risk, but country risk is a more general term for the risks of operating in a foreign market. Country Risk Analysis is used by Sovereign bond investors to assess default risk (ability and willingness to pay) Banks to determine where to lend, the currency to denominate the loans, and the interest rate on the loan Investment