tailieunhanh - Lecture International financial management - Chapter 3: International financial markets

This chapter describe the background and corporate use of the following international financial markets: foreign exchange market, international money market, international credit market, international bond market, international stock markets. | 1 Instructor: Ajab K. Burki MBA (Fin)- IBA Karachi, BSIT(Hons), BA (Economics) 1 2 3 International Financial Markets Describe the background and corporate use of the following International Financial Markets: Foreign exchange market International money market International credit market International bond market International stock markets 2 Chapter Objectives 2 3 Foreign Exchange Market Allows for the exchange of one currency for another. Exchange rate specifies the rate at which one currency can be exchanged for another. 4 History of Foreign Exchange Gold Standard (1876 – 1913) Each currency was convertible into gold at a specified rate. When World War I began in 1914, the gold standard was suspended. Agreements on Fixed Exchange Rates Bretton Woods Agreement 1944 - 1971 Smithsonian Agreement 1971 - 1973 Floating Exchange Rate System Widely traded currencies were allowed to fluctuate in accordance with market forces 5 Foreign Exchange Transactions The over-the-counter market is the telecommunications network where companies normally exchange one currency for another. Foreign exchange dealers serve as intermediaries in the foreign exchange market A foreign exchange transaction for immediate exchange is said to trade in the spot market. The exchange rate in the spot market is the spot rate. Trading between banks occurs in the interbank market. 6 Spot Market The . Dollar is the commonly accepted medium of exchange in the spot market. Spot market time zones - Foreign exchange trading is conducted only during normal business hours in a given location. Thus, at any given time on a weekday, somewhere around the world a bank is open and ready to accommodate foreign exchange requests. Spot market liquidity: More buyers and sellers means more liquidity. 7 Attributes of Banks That Provide Foreign Exchange Competitiveness of quote Special relationship with the bank Speed of execution Advice about current market conditions Forecasting advice 8 Foreign Exchange Quotations . | 1 Instructor: Ajab K. Burki MBA (Fin)- IBA Karachi, BSIT(Hons), BA (Economics) 1 2 3 International Financial Markets Describe the background and corporate use of the following International Financial Markets: Foreign exchange market International money market International credit market International bond market International stock markets 2 Chapter Objectives 2 3 Foreign Exchange Market Allows for the exchange of one currency for another. Exchange rate specifies the rate at which one currency can be exchanged for another. 4 History of Foreign Exchange Gold Standard (1876 – 1913) Each currency was convertible into gold at a specified rate. When World War I began in 1914, the gold standard was suspended. Agreements on Fixed Exchange Rates Bretton Woods Agreement 1944 - 1971 Smithsonian Agreement 1971 - 1973 Floating Exchange Rate System Widely traded currencies were allowed to fluctuate in accordance with market forces 5 Foreign Exchange Transactions The over-the-counter market is the

• Tài chính doanh nghiệp
• International financial management
• Quản lý tài chính quốc tế
• Lecture International financial management
• 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
• Balance of payments
• Current account
• Financial accounts
• 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