tailieunhanh - Lecture Fundamentals of financial management - Chapter 19: Multinational financial management

Chapter 19 - Multinational financial management. This chapter presents the following content: Multinational vs. domestic financial management, exchange rates and trading in foreign exchange, international money and capital markets. | CHAPTER 19 Multinational Financial Management Multinational vs. domestic financial management Exchange rates and trading in foreign exchange International money and capital markets What is a multinational corporation? A corporation that operates in two or more countries. Decision making within the corporation may be centralized in the home country, or may be decentralized across the countries the corporation does business in. Why do firms expand into other countries? To seek new markets. To seek raw materials. To seek new technology. To seek production efficiency. To avoid political and regulatory hurdles. To diversify. What factors distinguish multinational financial management from domestic financial management? Different currency denominations. Economic and legal ramifications. Language differences. Cultural differences. Role of governments. Political risk. Consider the following exchange rates US $ to buy 1 unit Japanese yen Australian dollar Are these currency prices direct or indirect quotations? Since they are prices of foreign currencies expressed in dollars, they are direct quotations. What is an indirect quotation? The number of units of a foreign currency needed to purchase one . dollar, or the reciprocal of a direct quotation. Are you more likely to observe direct or indirect quotations? Most exchange rates are stated in terms of an indirect quotation. Except the British pound, which is usually in terms of a direct quotation. Calculate the indirect quotations for yen and Australian dollar # of units of foreign currency per US $ Japanese yen Australian dollar Simply find the inverse of the direct quotations. What is a cross rate? The exchange rate between any two currencies. Cross rates are actually calculated on the basis of various currencies relative to the . dollar. Cross rate between Australian dollar and the Japanese yen. Cross rate = (Yen / US Dollar) x (US Dollar / A. Dollar) = x = Yen / A. . | CHAPTER 19 Multinational Financial Management Multinational vs. domestic financial management Exchange rates and trading in foreign exchange International money and capital markets What is a multinational corporation? A corporation that operates in two or more countries. Decision making within the corporation may be centralized in the home country, or may be decentralized across the countries the corporation does business in. Why do firms expand into other countries? To seek new markets. To seek raw materials. To seek new technology. To seek production efficiency. To avoid political and regulatory hurdles. To diversify. What factors distinguish multinational financial management from domestic financial management? Different currency denominations. Economic and legal ramifications. Language differences. Cultural differences. Role of governments. Political risk. Consider the following exchange rates US $ to buy 1 unit Japanese yen Australian dollar Are these currency prices

• Tài chính doanh nghiệp
• Financial management
• Fundamentals of financial management
• Financial statement
• Quản lý tài chính
• Multinational financial management
• Exchange rates
• International trade transactions
• Financial statement analysis
• International financial management
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
• IT financial management maturity
• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Hospitality financial management
• Hospitality industry management
• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
• Review of Financial Management
• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
• Investment decisions
• Role of management
• International cash management
• Cash flow analysis
• Centralized cash management
• Intermediate financial management
• Financial options
• Corporate valuation
• Corporate governance
• Financial markets
• Cash flow
• Analysis of financial statements
• Ratio analysis
• Interest rates
• Financial institutions
• Forecasting sales
• Business environment
• Limited liability company
• Common size analysis
• Statement analysis
• Break even analysis
• Break even point