tailieunhanh - Lecture Business finance - Chapter 21: International financial management

This chapter include objectives: Understand the importance of international transactions for the Australian economy; read, interpret and use foreign exchange rates; understand the roles of interest rates and inflation rates in exchange-rate determination; understand the empirical evidence on the behaviour of exchange rates; | Chapter 21 International Financial Management 2 2 2 2 2 2 2 Learning Objectives Understand the importance of international transactions for the Australian economy. Read, interpret and use foreign exchange rates. Understand the roles of interest rates and inflation rates in exchange-rate determination. Understand the empirical evidence on the behaviour of exchange rates. 2 2 2 2 2 2 2 Learning Objectives (cont.) Understand the techniques that can be used to manage exchange risk. Explain the advantages of international diversification of investments. Identify the characteristics and uses of currency swaps. Identify the main sources of foreign currency borrowing used by Australian companies. 3 3 3 3 3 Background Statistics International trade now represents about 20% of Australia’s gross domestic product: Table , Source: Reserve Bank of Australia, Bulletin. 4 4 4 4 4 Background Statistics (cont.) Historically, Australia has been a net importer of capital. Levels of foreign . | Chapter 21 International Financial Management 2 2 2 2 2 2 2 Learning Objectives Understand the importance of international transactions for the Australian economy. Read, interpret and use foreign exchange rates. Understand the roles of interest rates and inflation rates in exchange-rate determination. Understand the empirical evidence on the behaviour of exchange rates. 2 2 2 2 2 2 2 Learning Objectives (cont.) Understand the techniques that can be used to manage exchange risk. Explain the advantages of international diversification of investments. Identify the characteristics and uses of currency swaps. Identify the main sources of foreign currency borrowing used by Australian companies. 3 3 3 3 3 Background Statistics International trade now represents about 20% of Australia’s gross domestic product: Table , Source: Reserve Bank of Australia, Bulletin. 4 4 4 4 4 Background Statistics (cont.) Historically, Australia has been a net importer of capital. Levels of foreign investment in $A billion: non-official sector: Table , Source: Reserve Bank of Australia 5 5 Background Statistics (cont.) The extent of Australia’s external indebtedness is shown below: Table , Source: Reserve Bank of Australia 6 6 Foreign Exchange Market No actual market, instead a communications network linking banks and other dealers in foreign exchange. This market determines the prices of foreign currencies. These prices are called ‘exchange rates’. ‘Exchange rate’ — the price at which one country’s currency can be exchanged for another country’s currency in the foreign exchange market. 7 7 The Spot Exchange Rate ‘Spot rate’: rate for transactions for immediate delivery. In the case of foreign exchange, the spot rate is for settlement in 2 days. Examples of spot rates for one Australian dollar, as at 30 June 2004, are shown in Table . 9 8 The Spot Exchange Rate (cont.) for $A1 as at 30/6/2004 Table , Source: Australian Financial Review 10 9 The Spot Exchange Rate (cont.) .

• Tài chính doanh nghiệp
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• International financial management
• Foreign exchange rates
• Sources of finance
• Leasing finance
• Sources of long term finance
• Long term finance
• Equipment finance
• Ordinary shares
• Long term debt
• Dividend Policy
• Capital structure
• Capital structure decisions
• Capital market efficiency
• Futures contracts
• Option markets
• Analysis of takeovers
• Management of short term assets
• Financial decisions
• Financial mathematics
• The time value of money
• Project evaluation
• Project evaluation methods
• Portfolio theory
• Aasset pricing
• Financial intermediaries
• Sources of short term debt