tailieunhanh - Lecture International financial management - Chapter 2: International flow of funds

In this chapter you will learn: Explain the key components of the balance of payments, explain the growth in international trade activity over time, explain how international trade flows are influenced by economic factors and other factors, explain how international capital flows are influenced by country characteristics, introduce the agencies that facilitate the international flow of funds. | 1 Instructor: Ajab K. Burki MBA (Fin)- IBA Karachi, BSIT(Hons), BA (Economics) 1 2 2 International Flow of Funds Explain the key components of the balance of payments, Explain the growth in international trade activity over time, Explain how international trade flows are influenced by economic factors and other factors, Explain how international capital flows are influenced by country characteristics, Introduce the agencies that facilitate the international flow of funds. 2 Chapter Objectives 2 3 Balance of Payments Definition: Summary of transactions between domestic and foreign residents for a specific country over a specified period of time. 4 Balance of Payments Components of the Balance of Payments Statement: Current Account: summary of flow of funds due to purchases of goods or services or the provision of income on financial assets. 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. 5 Current Account 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 exports and imports is referred to as the balance of trade. Factor income payments Represents income (interest and dividend payments) received by investors on foreign investments in financial assets (securities). Transfer payments Represent aid, grants, and gifts from one country to another. 6 Exhibit Examples of Current Account Transactions 7 Exhibit Summary of Current Account in the year 2010 (in billions of $) 8 Capital and Financial Accounts Direct foreign investment Investments in fixed assets in foreign countries Portfolio investment Transactions involving long term financial assets (such as stocks and bonds) between countries that do not affect the transfer of control. Other capital investment Transactions . | 1 Instructor: Ajab K. Burki MBA (Fin)- IBA Karachi, BSIT(Hons), BA (Economics) 1 2 2 International Flow of Funds Explain the key components of the balance of payments, Explain the growth in international trade activity over time, Explain how international trade flows are influenced by economic factors and other factors, Explain how international capital flows are influenced by country characteristics, Introduce the agencies that facilitate the international flow of funds. 2 Chapter Objectives 2 3 Balance of Payments Definition: Summary of transactions between domestic and foreign residents for a specific country over a specified period of time. 4 Balance of Payments Components of the Balance of Payments Statement: Current Account: summary of flow of funds due to purchases of goods or services or the provision of income on financial assets. Capital Account: summary of flow of funds resulting from the sale of assets between one specified country and all other countries over a specified

• Tài chính doanh nghiệp
• International financial management
• Quản lý tài chính quốc tế
• Lecture International financial management
• Balance of payments
• Current account
• Financial accounts
• International financial markets
• Foreign exchange market
• International money market
• Financial statement
• International trade transactions
• Financial management
• Fundamentals of financial management
• Financial statement analysis
• International bond market
• International equity markets
• International trade finance
• Multinational cash management
• International equity financing
• International capital market equilibrium
• International capital budgeting
• The foreign currency hedging decision
• International banking
• Money market
• International portfolio investment
• International flow of funds
• Exchange rate determination
• Government influence
• Currency derivatives
• International tax environment
• Financial environments
• Bài giảng International financial management
• Tài chính quốc tế
• Multinational financial management
• Tăng trưởng của MNCs
• Direct foreign investment
• Multinational capital budgeting
• Financing international trade
• International cash management
• Lesson International financial management
• Management of translation exposure
• Translation Exposures
• Alternative currency translation methods
• Translation exposure
• International business
• International marketing
• International operations management
• International strategic management
• International strategic alliances
• Exchange rates
• International Fisher Effect
• Purchasing power parity
• International diversification
• International project
• Initial investment
• Lecture International business
• International environmental forces
• Organizational environment
• Financial management decisions
• International flow
• International arbitrage
• Interest rate parity
• Relationships among inflation
• International monetary system
• International parity relationships
• Forecasting foreign exchange rates
• International financial
• Managing transaction exposure
• Country risk analysis
• Lecture Multinational financial management
• International banking and money market
• International banking services
• Capital adequacy standards