Multinational financial management:
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Hoboken, NJ
Wiley
2006
|
| Ausgabe: | 8. ed. |
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | XXII, 745 S. graph. Darst. |
| ISBN: | 0471737690 9780471737698 |
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Datensatz im Suchindex
| _version_ | 1804135229506453505 |
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| adam_text | TABLE OF CONTENTS
Preface
Part I Environment of Ini
Financial Management
1 Introduction: Multinational
Enterprise and Multinational
Financial Management 2
Chapter Learning Objectives 2
Key Terms 2
1.1 The Rise of the Multinational Corporation 4
Evolution of the Multinational
Corporation 9
Raw Materials Seekers 10
Market Seekers 11
Cost Minimizers 22
A Behavioral Definition of the
Multinational Corporation 15
The Global Manager 17
1.2 The Internationalization of Business
and Finance 18
Political and Labor Union Concerns about
Global Competition 19
Consequences of Global
Competition 23
1.3 Multinational Financial Management: Theory
and Practice 29
Criticisms of the Multinational
Corporation 29
Functions of Financial Management 30
x
Ill
rERNATIONAL
1_
Theme of This Book 31
Relationship to Domestic Financial
Management 32
Arbitrage 32
Market Efficiency 32
Capital Asset Pricing 33
The Importance of Total Risk 33
The Global Financial Marketplace 34
The Role of the Financial Executive in an
Efficient Market 35
1.4 Outline of the Book 35
Environment of International Financial
Management 35
Foreign Exchange and Derivatives
Markets 36
Foreign Exchange Risk Management 36
Financing the Multinational
Corporation 36
Foreign Investment Analysis 36
Multinational Working Capital
Management 37
Questions 37
Internet Resources 38
Internet Exercises 38
Appendix 1A 39
2 The Determination
of Exchange Rates 44
Chapter Learning Objectives 44
Key Terms 44
2.1 Setting the Equilibrium Spot
Exchange Rate 45
Demand for a Currency 45
Supply of a Currency 46
Factors that Affect the Equilibrium
Exchange Rate 47
Relative Inflation Rates 47
Relative Interest Rates 48
Relative Economic Growth Rates 48
Political and Economic Risk 48
Calculating Exchange Rate Changes 50
2.2 Expectations and the Asset Market Model
of Exchange Rates 52
The Nature of Money and Currency
Values 56
Central Bank Reputations and Currency
Values 58
Price Stability and Central Bank
Independence 59
Currency Boards 63
Dollarization 66
Expectations and Currency Values 68
2.3 The Fundamentals of Central Bank
Intervention 70
How Real Exchange Rates Affect Relative
Competitiveness 70
Foreign Exchange Market Intervention 72
Mechanics oj Intervention 74
Sterilized versus Unsterilized Intervention 75
The Effects of Foreign Exchange Market
Intervention 76
2.4 The Equilibrium Approach to Exchange
Rates 78
Disequilibrium Theory and Exchange Rate
Overshooting 79
The Equilibrium Theory of Exchange
Rates and Its Implications 80
2.5 Summary and Conclusions 82
Questions 83
Problems 84
Internet Resources 85
Internet Exercises 86
Bibliography 86
3 The International Monetary
System 87
Chapter Learning Objectives 87
Key Terms 87
3.1 Alternative Exchange Rate Systems 88
Free Float 89
Managed Float 89
Target Zone Arrangement 91
Fixed Rate System 92
The Current System of Exchange Rate
Determination 92
3.2 A Brief History of the International
Monetary System 93
The Classical Gold Standard 96
How the Classical Gold Standard Worked
in Practice: 1821 1914 98
The Gold Exchange Standard and Its
Aftermath: 1925 1944 98
Competitive Devaluations 99
Bretton Woods Conference and the
Postwar Monetary System 99
Role of the JMF 99
Role of the World Bank 100
Role of the Bank for International
Settlements 100
The Bretton Woods System:
1946 1971 101
The Post Bretton Woods System:
1971 to the Present 102
OPEC and the Oil Crisis of 1973 1974 102
U.S. Dollar Crisis of 1977 1978 103
The Rising Dollar: 1980 1985 103
The Sinking Dollar: 1985 1987 103
Recent History: 1988 2005 104
XI
Assessment of the Floating Rate
System 105
Currency Volatility Has Increased 106
Requirements for Currency Stability 106
3.3 The European Monetary System
and Monetary Union 107
The Exchange Rate Mechanism 107
Lessons from the European Monetary
System 107
The Currency Crisis of
September 1992 108
The Catalyst 108
The High Cost of Intervention 108
The Exchange Rate Mechanism Is
Abandoned in August 1993 109
The Catalyst 109
Governments Surrender to the Market 110
A Postmortem on the EMS 110
European Monetary Union 111
Maastricht Convergence Criteria 111
Launch of the Euro 112
EMU and the European Welfare State 112
Consequences of EMU 114
Performance of the Euro 115
Optimum Currency Area 119
3.4 Emerging Market Currency Crises 122
Transmission Mechanisms 122
Trade Links 122
Financial System 122
Debt Policy 122
Origins of Emerging Market
Crises 122
Moral Hazard 122
Fundamental Policy Conflict 123
Policy Proposals for Dealing with
Emerging Market Crises 123
Currency Controls 123
Freely Floating Currency 123
Permanently Fixed Exchange Rate 124
Better Information 124
3.5 Summary and Conclusions 125
Questions 126
Problems 126
XII
Internet Resources 127
Internet Exercises 127
Bibliography 128
4 Parity Conditions in
International Finance and
Currency Forecasting 129
Chapter Learning Objectives 129
Key Terms 129
4.1 Arbitrage and the Law of One Price 130
4.2 Purchasing Power Parity 134
The Lesson of Purchasing Power
Parity 138
Expected Inflation and Exchange Rate
Changes 140
The Monetary Approach 140
Empirical Evidence 141
4.3 The Fisher Effect 144
Empirical Evidence 147
Adding Up Capital Markets
Internationally 152
4.4 The International Fisher Effect 152
Empirical Evidence 154
4.5 Interest Rate Parity Theory 155
Empirical Evidence 161
4.6 The Relationship Between the Forward Rate
and the Future Spot Rate 161
Empirical Evidence 164
4.7 Currency Forecasting 165
Requirements for Successful Currency
Forecasting 165
Market Based Forecasts 166
Forward Rates 166
Interest Rates 166
Model Based Forecasts 166
Fundamental Analysis 168
Technical Analysis 168
Model Evaluation 169
Forecasting Controlled Exchange
Rates 171
4.8 Summary and Conclusions 172
Questions 174
Problems 175
Internet Resources
Internet Exercises
Bibliography 178
S The Balance of Payments
and International
Economic Linkages 179
Chapter Learning Objectives 179
Key Terms 179
5.1 Balance of Payments Categories 180
Current Account 182
Capital Account 184
Financial Account 184
Balance of Payments Measures 185
The Missing Numbers 186
5.2 The International Flow of Goods, Services,
and Capital 186
Domestic Savings and Investment and the
Financial Account 187
The Link Between the Current
and Financial Accounts 187
Government Budget Deficits and Current
Account Deficits 191
The Current Situation 193
5.3 Coping with the Current Account
Deficit 195
Currency Depreciation 196
Lagged Effects 197
J Curve Theory 197
Devaluation and Inflation 199
U.S. Deficits and the Demand for U.S.
Assets 199
Protectionism 200
Ending Foreign Ownership of Domestic
Assets 200
Boosting the Savings Rate 202
External Policies 203
Current Account Deficits and
Unemployment 203
The Bottom Line on Current Account
Deficits and Surpluses 205
5.4 Summary and Conclusions 206
Questions 207
Problems 208
Internet Resources 209
Internet Exercises 210
6 Country Risk Analysis 21 1
Chapter Learning Objectives 211
Key Terms 211
6.1 Measuring Political Risk 212
Political Stability 213
Economic Factors 214
Subjective Factors 215
Political Risk and Uncertain Property
Rights 216
Capital Flight 220
6.2 Economic and Political Factors Underlying
Country Risk 222
Fiscal Irresponsibility 223
Monetary Instability 225
Controlled Exchange Rate System 226
Wasteful Government Spending 226
Resource Base 227
Country Risk and Adjustment to External
Shocks 227
Market Oriented versus Statist
Policies 228
Why Capitalism Works 228
Statist Policies Constrain Growth 229
Why Statist Policies Persist 229
Key Indicators of Country Risk
and Economic Health 230
Market Oriented Policies Work 232
Market Oriented Reform in Latin America 233
Obstacles to Economic Reform 235
XIII
6.3 Country Risk Analysis in International
Banking 237
Country Risk and the Terms
of Trade 237
The Government s Cost/Benefit
Calculus 238
Lessons from the International
Debt Crisis 239
Onset of the Crisis 239
Reform Takes Hold 239
Part 11 Foreign Exchange
derivatives markets
7 The Foreign Exchange
Market 246
Chapter Learning Objectives 246
Key Terms 246
7.1 Organization of the Foreign Exchange
Market 247
The Participants 249
The Clearing System 251
Electronic Trading 252
Size 253
7.2 The Spot Market 255
Spot Quotations 255
Transaction Costs 258
Cross Rates 259
Currency Arbitrage 261
Settlement Date 263
Exchange Risk 263
The Mechanics of Spot Transactions 264
7.3 The Forward Market 265
Forward Quotations 267
Exchange Risk 269
Cross Rates 269
Forward Contract Maturities 270
7.4 Summary and Conclusions 271
Questions 271
Problems 271
XIV
Debt Relief 239
The Crisis Ends 240
Lessons from Successful Economic
Reform 240
6.4 Summary and Conclusions 241
Questions 241
Problems 241
Internet Resources 243
Internet Exercises 243
Bibliography 243
i AND
245
Internet Resources 272
Internet Exercises 273
Bibliography 273
8 Currency Futures and
Options Markets 274
Chapter Learning Objectives 274
Key Terms 274
8.1 Futures Contracts 275
Forward Contract versus Futures
Contract 276
Advantages and Disadvantages of Futures
Contracts 281
Arbitrage Between the Futures and Forward
Markets 281
8.2 Currency Options 281
Market Structure 282
Using Currency Options 285
Currency Spread 289
Knockout Options 290
Option Pricing and Valuation 291
Using Forward or Futures Contracts
versus Options Contracts 293
Futures Options 298
8.3 Reading Currency Futures and Options
Prices 300
8.4 Summary and Conclusions 302
Questions 302
Problems 302
Internet Resources 303
Internet Exercises 304
Bibliography 304
Appendix 8A 304
Appendix 8B 307
9 Swaps and Interest Rate
Derivatives 311
Chapter Learning Objectives 311
Key Terms 311
9.1 Interest Rate and Currency Swaps 312
Interest Rate Swaps 312
The Classic Swap Transaction 313
Cost Savings Associated with Swaps 314
Part III Foreign Exchang
10 Measuring and Managing
Translation and Transaction
Exposure 336
Chapter Learning Objectives 336
Key Terms 336
10.1 Alternative Measures of Foreign Exchange
Exposure 337
Translation Exposure 337
Transaction Exposure 338
Operating Exposure 339
10.2 Alternative Currency Translation
Methods 339
Current/Noncurrent Method 339
Monetary/Nonmonetary Method 340
Currency Swaps 316
Interest Rate/Currency Swaps 318
Dual Currency Bond Swaps 323
Economic Advantages of Swaps 324
9.2 Interest Rate Forwards and
Futures 325
Forward Forwards 325
Forward Rate Agreement 326
Eurodollar Futures 327
9.3 Structured Notes 329
Inverse Floaters 330
Callable Step Up Note 331
Step Down Coupon Note 331
9.4 Summary and Conclusions 332
Questions 332
Problems 333
Internet Resources 334
Internet Exercises 334
Bibliography 334
e risk Management 335
Temporal Method 340
Current Rate Method 340
10.3 Transaction Exposure 341
10.4 Designing a Hedging Strategy 343
Objectives 344
Costs and Benefits of Standard Hedging
Techniques 347
Costs of Hedging 347
Benefits oj Hedging 348
Exposure Netting 350
Centralization Versus
Decentralization 350
Managing Risk Management 351
Accounting for Hedging and
FASB 133 352
XV
10.5 Managing Translation Exposure 353
Funds Adjustment 354
Evaluating Alternative Hedging
Mechanisms 355
10.6 Managing Transaction Exposure 356
Forward Market Hedge 357
The True Cost of Hedging 357
Money Market Hedge 359
Risk Shifting 361
Pricing Decisions 362
Exposure Netting 363
Currency Risk Sharing 365
Currency Collars 367
Cross Hedging 367
Foreign Currency Options 370
Using Options to Hedge Bids 371
Using Options to Hedge Other Currency
Risks 371
Options Versus Forward Contracts 373
10.7 Summary and Conclusions 375
Questions 376
Problems 377
Internet Resources 379
Internet Exercises 379
Bibliography 380
Appendix 10A 380
1 1 Measuring and Managing
Economic Exposure 385
Chapter Learning Objectives 385
Key Terms 385
11.1 Foreign Exchange Risk and Economic
Exposure 386
Real Exchange Rate Changes and
Exchange Risk 388
Importance of the Real Exchange
Rate 389
Inflation and Exchange Risk 389
XVI
Competitive Effects of Real Exchange
Rate Changes 390
11.2 The Economic Consequences of Exchange
Rate Changes 394
Transaction Exposure 394
Operating Exposure 395
11.3 Identifying Economic Exposure 399
Aspen Skiing Company 399
Petroleos Mexicanos 400
Toyota Motor Company 401
11.4 Calculating Economic Exposure 402
Spectrum s Accounting Exposure 402
Spectrum s Economic Exposure 402
Case Analysis 407
11.5 An Operational Measure of Exchange
Risk 407
Limitations 408
11.6 Managing Operating Exposure 409
Marketing Management of Exchange
Risk 409
Market Selection 409
Pricing Strategy 409
Product Strategy 412
Production Management of Exchange
Risk 413
Input Mix 413
Shifting Production Among Plants 414
Plant Location 415
Raising Productivity 416
Planning for Exchange Rate
Changes 417
Financial Management of Exchange
Risk 419
11.7 Summary and Conclusions 425
Questions 426
Problems 427
Internet Resources 429
Internet Exercises 429
Bibliography 429
Part IV Financing the ivi
Corporation
12 International Financing and
National Capital Markets 432
Chapter Learning Objectives 432
Key Terms 432
12.1 Corporate Sources and Uses of Funds 433
Financial Markets versus Financial
Intermediaries 434
Financial Systems and Corporate
Governance 434
Globalization of Financial Markets 438
12.2 National Capital Markets as International
Financial Centers 441
International Financial Markets 445
Foreign Access to Domestic Markets 445
The Foreign Bond Market 446
The Foreign Bank Market 447
The Foreign Equity Market 447
Globalization of Financial Markets Has
Its Downside 453
12.3 Development Banks 453
The World Bank Group 454
IBRD 454
IFC 454
IDA 455
Regional and National Development
Banks 455
Regional Development Banks 455
National Development Banks 456
Private Sector Alternatives 456
12.4 Project Finance 458
12.5 Summary and Conclusions 459
Questions 460
Problem 460
Internet Resources 461
Internet Exercises 461
Bibliography 461
[ULTINATIONAL
431
13 The Euromarkets 462
Chapter Learning Objectives 462
Key Terms 462
13.1 The Eurocurrency Market 462
Modern Origins 463
Eurodollar Creation 464
Eurocurrency Loans 465
Terms 466
Multicurrency Clauses 467
Relationship Between Domestic and
Eurocurrency Money Markets 468
Interest Differentials 468
Eurocurrency Spreads 468
Euromarket Trends 469
13.2 Eurobonds 470
Swaps 471
Links Between the Domestic and
Eurobond Markets 471
Placement 471
Currency Denomination 471
Interest Rates on Fixed Rate
Eurobonds 471
Interest Rates on Floating Rate
Eurobonds 472
Eurobond Retirement 473
Ratings 474
Rationale for Existence of Eurobond
Market 474
Eurobonds versus Eurocurrency
Loans 476
13.3 Note Issuance Facilities and Euronotes 477
Note Issuance Facilities versus
Eurobonds 480
Euro Medium Term Notes 480
Reasons for Success 480
Costs of a Euro MTN Program 481
XVII
Characteristics 481
Risks 482
13.4 Euro Commercial Paper 482
13.5 The Asiacurrency Market 483
13.6 Summary and Conclusions 484
Questions 484
Problems 485
Internet Resources 485
Internet Exercises 486
Bibliography 486
1 4 The Cost of Capital for
Foreign Investments 487
Chapter Learning Objectives 487
Key Terms 487
14.1 The Cost of Equity Capital 488
14.2 The Weighted Average Cost of Capital
for Foreign Projects 489
14.3 Discount Rates for Foreign
Investments 491
Evidence from the Stock Market 492
Key Issues in Estimating Foreign Project
Discount Rates 493
Proxy Companies 494
Local Companies 494
Proxy industry 495
Adjusted U.S. Industry Beta 496
The Relevant Base Portfolio 496
The Impact of Globalization on the Cost
of Capital 497
Part V Foreign Investme
15 International Portfolio
Investment 524
Chapter Learning Objectives 524
Key Terms 524
XVIII
Empirical Evidence 499
A Recommendation 500
The Relevant Market Risk Premium 500
Recommendations 502
14.4 The Cost of Debt Capital 502
Annual Exchange Rate Change 504
Using Sovereign Risk Spreads 504
14.5 Establishing a Worldwide Capital
Structure 505
Foreign Subsidiary Capital
Structure 506
Political Risk Management 508
Currency Risk Management 509
Leverage and Foreign Tax Credits 509
Leasing and Taxes 509
Cost Minimizing Approach to Global Capital
Structure 510
Joint Ventures 511
14.6 Valuing Low Cost Financing
Opportunities 511
Taxes 512
Zero Coupon Bonds 513
Debt versus Equity Financing 514
Government Credit and Capital
Controls 514
Government Subsidies and
Incentives 515
14.7 Summary and Conclusions 518
Questions 519
Problems 519
Internet Resources 520
Internet Exercises 520
Bibliography 520
nt Analysis 523
15.1 The Risks and Benefits of International
Equity Investing 525
International Diversification 526
Correlations and the Gains from
Diversification 528
Recent Correlations 532
Investing in Emerging Markets 535
Barriers to International
Diversification 540
15.2 International Bond Investing 543
15.3 Optimal International Asset
Allocation 544
15.4 Measuring the Total Return from Foreign
Portfolio Investing 545
Bonds 545
Stocks 546
15.5 Measuring Exchange Risk on Foreign
Securities 547
Hedging Currency Risk 548
15.6 Summary and Conclusions 548
Questions 549
Problems 549
Internet Resources 551
Internet Exercises 551
Bibliography 551
1 6 Corporate Strategy
and Foreign Direct Investment 553
Chapter Learning Objectives 553
Key Terms 553
16.1 The Process of Overseas Expansion 554
Exporting 554
Overseas Production 555
Licensing 556
16.2 Theory of the Multinational
Corporation 557
Product and Factor Market
Imperfections 557
Financial Market Imperfections 558
16.3 The Strategy of Multinational
Enterprise 559
Innovation Based Multinationals 559
The Mature Multinationals 560
The Senescent Multinationals 563
Foreign Direct Investment and
Survival 565
Cost Reduction 565
Economies of Scale 565
Multiple Sourcing 567
Knowledge Seeking 567
Keeping Domestic Customers 569
16.4 Designing a Global Expansion
Strategy 571
1. Awareness of Profitable
Investments 571
2. Selecting a Mode of Entry 572
3. Auditing the Effectiveness of Entry
Modes 572
4. Using Appropriate Evaluation
Criteria 573
5. Estimating the Longevity of a
Competitive Advantage 574
16.5 Summary and Conclusions 575
Questions 575
Problems 576
Internet Resources 577
Internet Exercises 577
Bibliography 577
1 7 Capital Budgeting for the
Multinational Corporation S78
Chapter Learning Objectives 578
Key Terms 578
17.1 Basics of Capital Budgeting 579
Net Present Value 579
Incremental Cash Flows 580
Cannibalization 580
Sales Creation 581
Opportunity Cost 581
Transfer Pricing 581
Fees and Royalties 582
Getting the Base Case Right 582
Accounting jor Intangible Benefits 583
XIX
Alternative Capital Budgeting
Frameworks 584
An Adjusted Present Value Approach 584
17.2 Issues in Foreign Investment Analysis 586
Parent versus Project Cash Flows 586
A Three Stage Approach 586
Estimating Incremental Project Cash
Flows 587
Tax Factors 587
Political and Economic Risk
Analysis 588
Adjusting the Discount Rate or Payback
Period 588
Adjusting Expected Values 589
Exchange Rate Changes and
Inflation 589
17.3 Foreign Project Appraisal: The Case
of International Diesel Corporation 590
Estimation of Project Cash Flows 591
Initial Investment Outlay 591
Financing 1DC U.K. 592
Interest Subsidies 593
Sales and Revenue Forecasts 593
Production Cost Estimates 594
Part VI Multinational W
Management
18 Financing Foreign Trade 616
Chapter Learning Objectives 616
Key Terms 616
18.1 Payment Terms in International Trade 617
Cash in Advance 617
Letter of Credit 618
Online Alternatives 622
Draft 623
Consignment 625
Open Account 626
xx
Projected Net Income 594
Additions to Working Capital 594
Terminal Value 596
Estimated Project Present Value 596
Estimation of Parent Cash Flows 597
Loan Payments 597
Remittances to IDC U.S. 598
Earnings on Exports to IDC U.K. 597
Estimated Present Value oj Project
to IDC U.S. 598
Lost Sales 598
17 A Political Risk Analysis 600
Expropriation 600
Blocked Funds 601
17.5 Growth Options and Project
Evaluation 602
17.6 Summary and Conclusions 606
Questions 607
Problems 607
Internet Resources 608
Internet Exercises 609
Appendix 17A 609
orking Capital
615
Banks and Trade Financing 627
Collecting Overdue Accounts 627
18.2 Documents in International Trade 628
Bill of Lading 628
Commercial Invoice 629
Insurance Certificate 629
Consular Invoice 629
18.3 Financing Techniques in International
Trade 630
Bankers Acceptances 630
Creating an Acceptance 630
Terms oj Acceptance Financing 630
Evaluating the Cost oj Acceptance
Financing 632
Discounting 632
Factoring 633
Evaluating the Cost of Factoring 633
Forfaiting 634
18.4 Government Sources of Export Financing
and Credit Insurance 634
Export Financing 634
Export Import Bank 635
Private Export Funding
Corporation 637
Trends 637
Export Credit Insurance 637
Foreign Credit Insurance
Association 638
Taking Advantage of Government
Subsidized Export Financing 638
Export Financing Strategy 639
Import Financing Strategy 639
18.5 Countertrade 640
18.6 Summary and Conclusions 643
Questions 644
Problems 644
Internet Resources 645
Internet Exercises 645
Bibliography 645
1 9 Current Asset Management
and Short Term Financing 646
Chapter Learning Objectives 646
Key Terms 646
19.1 International Cash Management 647
Organization 647
Collection and Disbursement of
Funds 648
Payments Netting in International Cash
Management 651
Bilateral and Multilateral Netting 651
Information Requirements 652
Foreign Exchange Controls 654
Analysis 654
Management of the Short Term
Investment Portfolio 655
Portfolio Guidelines 656
Optimal Worldwide Cash Levels 656
Evaluation and Control 658
Cash Planning and Budgeting 659
Multinational Cash Mobilization 659
Bank Relations 661
19.2 Accounts Receivable Management 663
Credit Extension 663
19.3 Inventory Management 665
Production Location and Inventory
Control 665
Advance Inventory Purchases 666
Inventory Stockpiling 666
19.4 Short Term Financing 666
Key Factors in Short Term Financing
Strategy 667
Short Term Financing Objectives 668
Short Term Financing Options 669
Intercompany Financing 669
Local Currency Financing 669
Bank Loans 669
Commercial Paper 673
Calculating the Dollar Costs of
Alternative Financing Options 673
Case 1: No Taxes 674
Case 2: Taxes 675
19.5 Summary and Conclusions 677
Questions 678
Problems 679
Internet Resources 680
Internet Exercises 680
Bibliography 680
XXI
2O Managing the Multinational
Financial System 681
Chapter Learning Objectives 681
Key Terms 681
20.1 The Value of the Multinational Financial
System 682
Mode of Transfer 683
Timing Flexibility 684
Value 684
20.2 Intercompany Fund Flow Mechanisms:
Costs and Benefits 686
Tax Factors3 686
Transfer Pricing 687
Tax Effects 687
Tariffs 688
Exchange Controls 691
Joint Ventures 691
Disguising Profitability 691
Evaluation and Control 691
Reinvoicing Centers 691
Fees and Royalties 692
Leading and Lagging 694
Shifting Liquidity 694
Advantages 696
Government Restrictions 696
XXII
Intercompany Loans 696
Back to Back Loans 696
Parallel Loans 699
Dividends 700
Tax Effects 700
Financing Requirements 701
Exchange Controls 701
Joint Ventures 703
Equity versus Debt 703
20.3 Designing a Global Remittance
Policy 706
Prerequisites 707
Information Requirements 708
Behavioral Consequences 708
20.4 Summary and Conclusions 710
Questions 711
Problems 711
Internet Resources 712
Internet Exercises 712
Bibliography 713
Glossary 715
Index 733
|
| adam_txt |
TABLE OF CONTENTS
Preface
Part I Environment of Ini
Financial Management
1 Introduction: Multinational
Enterprise and Multinational
Financial Management 2
Chapter Learning Objectives 2
Key Terms 2
1.1 The Rise of the Multinational Corporation 4
Evolution of the Multinational
Corporation 9
Raw Materials Seekers 10
Market Seekers 11
Cost Minimizers 22
A Behavioral Definition of the
Multinational Corporation 15
The Global Manager 17
1.2 The Internationalization of Business
and Finance 18
Political and Labor Union Concerns about
Global Competition 19
Consequences of Global
Competition 23
1.3 Multinational Financial Management: Theory
and Practice 29
Criticisms of the Multinational
Corporation 29
Functions of Financial Management 30
x
Ill
rERNATIONAL
1_
Theme of This Book 31
Relationship to Domestic Financial
Management 32
Arbitrage 32
Market Efficiency 32
Capital Asset Pricing 33
The Importance of Total Risk 33
The Global Financial Marketplace 34
The Role of the Financial Executive in an
Efficient Market 35
1.4 Outline of the Book 35
Environment of International Financial
Management 35
Foreign Exchange and Derivatives
Markets 36
Foreign Exchange Risk Management 36
Financing the Multinational
Corporation 36
Foreign Investment Analysis 36
Multinational Working Capital
Management 37
Questions 37
Internet Resources 38
Internet Exercises 38
Appendix 1A 39
2 The Determination
of Exchange Rates 44
Chapter Learning Objectives 44
Key Terms 44
2.1 Setting the Equilibrium Spot
Exchange Rate 45
Demand for a Currency 45
Supply of a Currency 46
Factors that Affect the Equilibrium
Exchange Rate 47
Relative Inflation Rates 47
Relative Interest Rates 48
Relative Economic Growth Rates 48
Political and Economic Risk 48
Calculating Exchange Rate Changes 50
2.2 Expectations and the Asset Market Model
of Exchange Rates 52
The Nature of Money and Currency
Values 56
Central Bank Reputations and Currency
Values 58
Price Stability and Central Bank
Independence 59
Currency Boards 63
Dollarization 66
Expectations and Currency Values 68
2.3 The Fundamentals of Central Bank
Intervention 70
How Real Exchange Rates Affect Relative
Competitiveness 70
Foreign Exchange Market Intervention 72
Mechanics oj Intervention 74
Sterilized versus Unsterilized Intervention 75
The Effects of Foreign Exchange Market
Intervention 76
2.4 The Equilibrium Approach to Exchange
Rates 78
Disequilibrium Theory and Exchange Rate
Overshooting 79
The Equilibrium Theory of Exchange
Rates and Its Implications 80
2.5 Summary and Conclusions 82
Questions 83
Problems 84
Internet Resources 85
Internet Exercises 86
Bibliography 86
3 The International Monetary
System 87
Chapter Learning Objectives 87
Key Terms 87
3.1 Alternative Exchange Rate Systems 88
Free Float 89
Managed Float 89
Target Zone Arrangement 91
Fixed Rate System 92
The Current System of Exchange Rate
Determination 92
3.2 A Brief History of the International
Monetary System 93
The Classical Gold Standard 96
How the Classical Gold Standard Worked
in Practice: 1821 1914 98
The Gold Exchange Standard and Its
Aftermath: 1925 1944 98
Competitive Devaluations 99
Bretton Woods Conference and the
Postwar Monetary System 99
Role of the JMF 99
Role of the World Bank 100
Role of the Bank for International
Settlements 100
The Bretton Woods System:
1946 1971 101
The Post Bretton Woods System:
1971 to the Present 102
OPEC and the Oil Crisis of 1973 1974 102
U.S. Dollar Crisis of 1977 1978 103
The Rising Dollar: 1980 1985 103
The Sinking Dollar: 1985 1987 103
Recent History: 1988 2005 104
XI
Assessment of the Floating Rate
System 105
Currency Volatility Has Increased 106
Requirements for Currency Stability 106
3.3 The European Monetary System
and Monetary Union 107
The Exchange Rate Mechanism 107
Lessons from the European Monetary
System 107
The Currency Crisis of
September 1992 108
The Catalyst 108
The High Cost of Intervention 108
The Exchange Rate Mechanism Is
Abandoned in August 1993 109
The Catalyst 109
Governments Surrender to the Market 110
A Postmortem on the EMS 110
European Monetary Union 111
Maastricht Convergence Criteria 111
Launch of the Euro 112
EMU and the European Welfare State 112
Consequences of EMU 114
Performance of the Euro 115
Optimum Currency Area 119
3.4 Emerging Market Currency Crises 122
Transmission Mechanisms 122
Trade Links 122
Financial System 122
Debt Policy 122
Origins of Emerging Market
Crises 122
Moral Hazard 122
Fundamental Policy Conflict 123
Policy Proposals for Dealing with
Emerging Market Crises 123
Currency Controls 123
Freely Floating Currency 123
Permanently Fixed Exchange Rate 124
Better Information 124
3.5 Summary and Conclusions 125
Questions 126
Problems 126
XII
Internet Resources 127
Internet Exercises 127
Bibliography 128
4 Parity Conditions in
International Finance and
Currency Forecasting 129
Chapter Learning Objectives 129
Key Terms 129
4.1 Arbitrage and the Law of One Price 130
4.2 Purchasing Power Parity 134
The Lesson of Purchasing Power
Parity 138
Expected Inflation and Exchange Rate
Changes 140
The Monetary Approach 140
Empirical Evidence 141
4.3 The Fisher Effect 144
Empirical Evidence 147
Adding Up Capital Markets
Internationally 152
4.4 The International Fisher Effect 152
Empirical Evidence 154
4.5 Interest Rate Parity Theory 155
Empirical Evidence 161
4.6 The Relationship Between the Forward Rate
and the Future Spot Rate 161
Empirical Evidence 164
4.7 Currency Forecasting 165
Requirements for Successful Currency
Forecasting 165
Market Based Forecasts 166
Forward Rates 166
Interest Rates 166
Model Based Forecasts 166
Fundamental Analysis 168
Technical Analysis 168
Model Evaluation 169
Forecasting Controlled Exchange
Rates 171
4.8 Summary and Conclusions 172
Questions 174
Problems 175
Internet Resources
Internet Exercises
Bibliography 178
S The Balance of Payments
and International
Economic Linkages 179
Chapter Learning Objectives 179
Key Terms 179
5.1 Balance of Payments Categories 180
Current Account 182
Capital Account 184
Financial Account 184
Balance of Payments Measures 185
The Missing Numbers 186
5.2 The International Flow of Goods, Services,
and Capital 186
Domestic Savings and Investment and the
Financial Account 187
The Link Between the Current
and Financial Accounts 187
Government Budget Deficits and Current
Account Deficits 191
The Current Situation 193
5.3 Coping with the Current Account
Deficit 195
Currency Depreciation 196
Lagged Effects 197
J Curve Theory 197
Devaluation and Inflation 199
U.S. Deficits and the Demand for U.S.
Assets 199
Protectionism 200
Ending Foreign Ownership of Domestic
Assets 200
Boosting the Savings Rate 202
External Policies 203
Current Account Deficits and
Unemployment 203
The Bottom Line on Current Account
Deficits and Surpluses 205
5.4 Summary and Conclusions 206
Questions 207
Problems 208
Internet Resources 209
Internet Exercises 210
6 Country Risk Analysis 21 1
Chapter Learning Objectives 211
Key Terms 211
6.1 Measuring Political Risk 212
Political Stability 213
Economic Factors 214
Subjective Factors 215
Political Risk and Uncertain Property
Rights 216
Capital Flight 220
6.2 Economic and Political Factors Underlying
Country Risk 222
Fiscal Irresponsibility 223
Monetary Instability 225
Controlled Exchange Rate System 226
Wasteful Government Spending 226
Resource Base 227
Country Risk and Adjustment to External
Shocks 227
Market Oriented versus Statist
Policies 228
Why Capitalism Works 228
Statist Policies Constrain Growth 229
Why Statist Policies Persist 229
Key Indicators of Country Risk
and Economic Health 230
Market Oriented Policies Work 232
Market Oriented Reform in Latin America 233
Obstacles to Economic Reform 235
XIII
6.3 Country Risk Analysis in International
Banking 237
Country Risk and the Terms
of Trade 237
The Government's Cost/Benefit
Calculus 238
Lessons from the International
Debt Crisis 239
Onset of the Crisis 239
Reform Takes Hold 239
Part 11 Foreign Exchange
derivatives markets
7 The Foreign Exchange
Market 246
Chapter Learning Objectives 246
Key Terms 246
7.1 Organization of the Foreign Exchange
Market 247
The Participants 249
The Clearing System 251
Electronic Trading 252
Size 253
7.2 The Spot Market 255
Spot Quotations 255
Transaction Costs 258
Cross Rates 259
Currency Arbitrage 261
Settlement Date 263
Exchange Risk 263
The Mechanics of Spot Transactions 264
7.3 The Forward Market 265
Forward Quotations 267
Exchange Risk 269
Cross Rates 269
Forward Contract Maturities 270
7.4 Summary and Conclusions 271
Questions 271
Problems 271
XIV
Debt Relief 239
The Crisis Ends 240
Lessons from Successful Economic
Reform 240
6.4 Summary and Conclusions 241
Questions 241
Problems 241
Internet Resources 243
Internet Exercises 243
Bibliography 243
i AND
245
Internet Resources 272
Internet Exercises 273
Bibliography 273
8 Currency Futures and
Options Markets 274
Chapter Learning Objectives 274
Key Terms 274
8.1 Futures Contracts 275
Forward Contract versus Futures
Contract 276
Advantages and Disadvantages of Futures
Contracts 281
Arbitrage Between the Futures and Forward
Markets 281
8.2 Currency Options 281
Market Structure 282
Using Currency Options 285
Currency Spread 289
Knockout Options 290
Option Pricing and Valuation 291
Using Forward or Futures Contracts
versus Options Contracts 293
Futures Options 298
8.3 Reading Currency Futures and Options
Prices 300
8.4 Summary and Conclusions 302
Questions 302
Problems 302
Internet Resources 303
Internet Exercises 304
Bibliography 304
Appendix 8A 304
Appendix 8B 307
9 Swaps and Interest Rate
Derivatives 311
Chapter Learning Objectives 311
Key Terms 311
9.1 Interest Rate and Currency Swaps 312
Interest Rate Swaps 312
The Classic Swap Transaction 313
Cost Savings Associated with Swaps 314
Part III Foreign Exchang
10 Measuring and Managing
Translation and Transaction
Exposure 336
Chapter Learning Objectives 336
Key Terms 336
10.1 Alternative Measures of Foreign Exchange
Exposure 337
Translation Exposure 337
Transaction Exposure 338
Operating Exposure 339
10.2 Alternative Currency Translation
Methods 339
Current/Noncurrent Method 339
Monetary/Nonmonetary Method 340
Currency Swaps 316
Interest Rate/Currency Swaps 318
Dual Currency Bond Swaps 323
Economic Advantages of Swaps 324
9.2 Interest Rate Forwards and
Futures 325
Forward Forwards 325
Forward Rate Agreement 326
Eurodollar Futures 327
9.3 Structured Notes 329
Inverse Floaters 330
Callable Step Up Note 331
Step Down Coupon Note 331
9.4 Summary and Conclusions 332
Questions 332
Problems 333
Internet Resources 334
Internet Exercises 334
Bibliography 334
e risk Management 335
Temporal Method 340
Current Rate Method 340
10.3 Transaction Exposure 341
10.4 Designing a Hedging Strategy 343
Objectives 344
Costs and Benefits of Standard Hedging
Techniques 347
Costs of Hedging 347
Benefits oj Hedging 348
Exposure Netting 350
Centralization Versus
Decentralization 350
Managing Risk Management 351
Accounting for Hedging and
FASB 133 352
XV
10.5 Managing Translation Exposure 353
Funds Adjustment 354
Evaluating Alternative Hedging
Mechanisms 355
10.6 Managing Transaction Exposure 356
Forward Market Hedge 357
The True Cost of Hedging 357
Money Market Hedge 359
Risk Shifting 361
Pricing Decisions 362
Exposure Netting 363
Currency Risk Sharing 365
Currency Collars 367
Cross Hedging 367
Foreign Currency Options 370
Using Options to Hedge Bids 371
Using Options to Hedge Other Currency
Risks 371
Options Versus Forward Contracts 373
10.7 Summary and Conclusions 375
Questions 376
Problems 377
Internet Resources 379
Internet Exercises 379
Bibliography 380
Appendix 10A 380
1 1 Measuring and Managing
Economic Exposure 385
Chapter Learning Objectives 385
Key Terms 385
11.1 Foreign Exchange Risk and Economic
Exposure 386
Real Exchange Rate Changes and
Exchange Risk 388
Importance of the Real Exchange
Rate 389
Inflation and Exchange Risk 389
XVI
Competitive Effects of Real Exchange
Rate Changes 390
11.2 The Economic Consequences of Exchange
Rate Changes 394
Transaction Exposure 394
Operating Exposure 395
11.3 Identifying Economic Exposure 399
Aspen Skiing Company 399
Petroleos Mexicanos 400
Toyota Motor Company 401
11.4 Calculating Economic Exposure 402
Spectrum's Accounting Exposure 402
Spectrum's Economic Exposure 402
Case Analysis 407
11.5 An Operational Measure of Exchange
Risk 407
Limitations 408
11.6 Managing Operating Exposure 409
Marketing Management of Exchange
Risk 409
Market Selection 409
Pricing Strategy 409
Product Strategy 412
Production Management of Exchange
Risk 413
Input Mix 413
Shifting Production Among Plants 414
Plant Location 415
Raising Productivity 416
Planning for Exchange Rate
Changes 417
Financial Management of Exchange
Risk 419
11.7 Summary and Conclusions 425
Questions 426
Problems 427
Internet Resources 429
Internet Exercises 429
Bibliography 429
Part IV Financing the ivi
Corporation
12 International Financing and
National Capital Markets 432
Chapter Learning Objectives 432
Key Terms 432
12.1 Corporate Sources and Uses of Funds 433
Financial Markets versus Financial
Intermediaries 434
Financial Systems and Corporate
Governance 434
Globalization of Financial Markets 438
12.2 National Capital Markets as International
Financial Centers 441
International Financial Markets 445
Foreign Access to Domestic Markets 445
The Foreign Bond Market 446
The Foreign Bank Market 447
The Foreign Equity Market 447
Globalization of Financial Markets Has
Its Downside 453
12.3 Development Banks 453
The World Bank Group 454
IBRD 454
IFC 454
IDA 455
Regional and National Development
Banks 455
Regional Development Banks 455
National Development Banks 456
Private Sector Alternatives 456
12.4 Project Finance 458
12.5 Summary and Conclusions 459
Questions 460
Problem 460
Internet Resources 461
Internet Exercises 461
Bibliography 461
[ULTINATIONAL
431
13 The Euromarkets 462
Chapter Learning Objectives 462
Key Terms 462
13.1 The Eurocurrency Market 462
Modern Origins 463
Eurodollar Creation 464
Eurocurrency Loans 465
Terms 466
Multicurrency Clauses 467
Relationship Between Domestic and
Eurocurrency Money Markets 468
Interest Differentials 468
Eurocurrency Spreads 468
Euromarket Trends 469
13.2 Eurobonds 470
Swaps 471
Links Between the Domestic and
Eurobond Markets 471
Placement 471
Currency Denomination 471
Interest Rates on Fixed Rate
Eurobonds 471
Interest Rates on Floating Rate
Eurobonds 472
Eurobond Retirement 473
Ratings 474
Rationale for Existence of Eurobond
Market 474
Eurobonds versus Eurocurrency
Loans 476
13.3 Note Issuance Facilities and Euronotes 477
Note Issuance Facilities versus
Eurobonds 480
Euro Medium Term Notes 480
Reasons for Success 480
Costs of a Euro MTN Program 481
XVII
Characteristics 481
Risks 482
13.4 Euro Commercial Paper 482
13.5 The Asiacurrency Market 483
13.6 Summary and Conclusions 484
Questions 484
Problems 485
Internet Resources 485
Internet Exercises 486
Bibliography 486
1 4 The Cost of Capital for
Foreign Investments 487
Chapter Learning Objectives 487
Key Terms 487
14.1 The Cost of Equity Capital 488
14.2 The Weighted Average Cost of Capital
for Foreign Projects 489
14.3 Discount Rates for Foreign
Investments 491
Evidence from the Stock Market 492
Key Issues in Estimating Foreign Project
Discount Rates 493
Proxy Companies 494
Local Companies 494
Proxy industry 495
Adjusted U.S. Industry Beta 496
The Relevant Base Portfolio 496
The Impact of Globalization on the Cost
of Capital 497
Part V Foreign Investme
15 International Portfolio
Investment 524
Chapter Learning Objectives 524
Key Terms 524
XVIII
Empirical Evidence 499
A Recommendation 500
The Relevant Market Risk Premium 500
Recommendations 502
14.4 The Cost of Debt Capital 502
Annual Exchange Rate Change 504
Using Sovereign Risk Spreads 504
14.5 Establishing a Worldwide Capital
Structure 505
Foreign Subsidiary Capital
Structure 506
Political Risk Management 508
Currency Risk Management 509
Leverage and Foreign Tax Credits 509
Leasing and Taxes 509
Cost Minimizing Approach to Global Capital
Structure 510
Joint Ventures 511
14.6 Valuing Low Cost Financing
Opportunities 511
Taxes 512
Zero Coupon Bonds 513
Debt versus Equity Financing 514
Government Credit and Capital
Controls 514
Government Subsidies and
Incentives 515
14.7 Summary and Conclusions 518
Questions 519
Problems 519
Internet Resources 520
Internet Exercises 520
Bibliography 520
nt Analysis 523
15.1 The Risks and Benefits of International
Equity Investing 525
International Diversification 526
Correlations and the Gains from
Diversification 528
Recent Correlations 532
Investing in Emerging Markets 535
Barriers to International
Diversification 540
15.2 International Bond Investing 543
15.3 Optimal International Asset
Allocation 544
15.4 Measuring the Total Return from Foreign
Portfolio Investing 545
Bonds 545
Stocks 546
15.5 Measuring Exchange Risk on Foreign
Securities 547
Hedging Currency Risk 548
15.6 Summary and Conclusions 548
Questions 549
Problems 549
Internet Resources 551
Internet Exercises 551
Bibliography 551
1 6 Corporate Strategy
and Foreign Direct Investment 553
Chapter Learning Objectives 553
Key Terms 553
16.1 The Process of Overseas Expansion 554
Exporting 554
Overseas Production 555
Licensing 556
16.2 Theory of the Multinational
Corporation 557
Product and Factor Market
Imperfections 557
Financial Market Imperfections 558
16.3 The Strategy of Multinational
Enterprise 559
Innovation Based Multinationals 559
The Mature Multinationals 560
The Senescent Multinationals 563
Foreign Direct Investment and
Survival 565
Cost Reduction 565
Economies of Scale 565
Multiple Sourcing 567
Knowledge Seeking 567
Keeping Domestic Customers 569
16.4 Designing a Global Expansion
Strategy 571
1. Awareness of Profitable
Investments 571
2. Selecting a Mode of Entry 572
3. Auditing the Effectiveness of Entry
Modes 572
4. Using Appropriate Evaluation
Criteria 573
5. Estimating the Longevity of a
Competitive Advantage 574
16.5 Summary and Conclusions 575
Questions 575
Problems 576
Internet Resources 577
Internet Exercises 577
Bibliography 577
1 7 Capital Budgeting for the
Multinational Corporation S78
Chapter Learning Objectives 578
Key Terms 578
17.1 Basics of Capital Budgeting 579
Net Present Value 579
Incremental Cash Flows 580
Cannibalization 580
Sales Creation 581
Opportunity Cost 581
Transfer Pricing 581
Fees and Royalties 582
Getting the Base Case Right 582
Accounting jor Intangible Benefits 583
XIX
Alternative Capital Budgeting
Frameworks 584
An Adjusted Present Value Approach 584
17.2 Issues in Foreign Investment Analysis 586
Parent versus Project Cash Flows 586
A Three Stage Approach 586
Estimating Incremental Project Cash
Flows 587
Tax Factors 587
Political and Economic Risk
Analysis 588
Adjusting the Discount Rate or Payback
Period 588
Adjusting Expected Values 589
Exchange Rate Changes and
Inflation 589
17.3 Foreign Project Appraisal: The Case
of International Diesel Corporation 590
Estimation of Project Cash Flows 591
Initial Investment Outlay 591
Financing 1DC U.K. 592
Interest Subsidies 593
Sales and Revenue Forecasts 593
Production Cost Estimates 594
Part VI Multinational W
Management
18 Financing Foreign Trade 616
Chapter Learning Objectives 616
Key Terms 616
18.1 Payment Terms in International Trade 617
Cash in Advance 617
Letter of Credit 618
Online Alternatives 622
Draft 623
Consignment 625
Open Account 626
xx
Projected Net Income 594
Additions to Working Capital 594
Terminal Value 596
Estimated Project Present Value 596
Estimation of Parent Cash Flows 597
Loan Payments 597
Remittances to IDC U.S. 598
Earnings on Exports to IDC U.K. 597
Estimated Present Value oj Project
to IDC U.S. 598
Lost Sales 598
17 A Political Risk Analysis 600
Expropriation 600
Blocked Funds 601
17.5 Growth Options and Project
Evaluation 602
17.6 Summary and Conclusions 606
Questions 607
Problems 607
Internet Resources 608
Internet Exercises 609
Appendix 17A 609
orking Capital
615
Banks and Trade Financing 627
Collecting Overdue Accounts 627
18.2 Documents in International Trade 628
Bill of Lading 628
Commercial Invoice 629
Insurance Certificate 629
Consular Invoice 629
18.3 Financing Techniques in International
Trade 630
Bankers' Acceptances 630
Creating an Acceptance 630
Terms oj Acceptance Financing 630
Evaluating the Cost oj Acceptance
Financing 632
Discounting 632
Factoring 633
Evaluating the Cost of Factoring 633
Forfaiting 634
18.4 Government Sources of Export Financing
and Credit Insurance 634
Export Financing 634
Export Import Bank 635
Private Export Funding
Corporation 637
Trends 637
Export Credit Insurance 637
Foreign Credit Insurance
Association 638
Taking Advantage of Government
Subsidized Export Financing 638
Export Financing Strategy 639
Import Financing Strategy 639
18.5 Countertrade 640
18.6 Summary and Conclusions 643
Questions 644
Problems 644
Internet Resources 645
Internet Exercises 645
Bibliography 645
1 9 Current Asset Management
and Short Term Financing 646
Chapter Learning Objectives 646
Key Terms 646
19.1 International Cash Management 647
Organization 647
Collection and Disbursement of
Funds 648
Payments Netting in International Cash
Management 651
Bilateral and Multilateral Netting 651
Information Requirements 652
Foreign Exchange Controls 654
Analysis 654
Management of the Short Term
Investment Portfolio 655
Portfolio Guidelines 656
Optimal Worldwide Cash Levels 656
Evaluation and Control 658
Cash Planning and Budgeting 659
Multinational Cash Mobilization 659
Bank Relations 661
19.2 Accounts Receivable Management 663
Credit Extension 663
19.3 Inventory Management 665
Production Location and Inventory
Control 665
Advance Inventory Purchases 666
Inventory Stockpiling 666
19.4 Short Term Financing 666
Key Factors in Short Term Financing
Strategy 667
Short Term Financing Objectives 668
Short Term Financing Options 669
Intercompany Financing 669
Local Currency Financing 669
Bank Loans 669
Commercial Paper 673
Calculating the Dollar Costs of
Alternative Financing Options 673
Case 1: No Taxes 674
Case 2: Taxes 675
19.5 Summary and Conclusions 677
Questions 678
Problems 679
Internet Resources 680
Internet Exercises 680
Bibliography 680
XXI
2O Managing the Multinational
Financial System 681
Chapter Learning Objectives 681
Key Terms 681
20.1 The Value of the Multinational Financial
System 682
Mode of Transfer 683
Timing Flexibility 684
Value 684
20.2 Intercompany Fund Flow Mechanisms:
Costs and Benefits 686
Tax Factors3 686
Transfer Pricing 687
Tax Effects 687
Tariffs 688
Exchange Controls 691
Joint Ventures 691
Disguising Profitability 691
Evaluation and Control 691
Reinvoicing Centers 691
Fees and Royalties 692
Leading and Lagging 694
Shifting Liquidity 694
Advantages 696
Government Restrictions 696
XXII
Intercompany Loans 696
Back to Back Loans 696
Parallel Loans 699
Dividends 700
Tax Effects 700
Financing Requirements 701
Exchange Controls 701
Joint Ventures 703
Equity versus Debt 703
20.3 Designing a Global Remittance
Policy 706
Prerequisites 707
Information Requirements 708
Behavioral Consequences 708
20.4 Summary and Conclusions 710
Questions 711
Problems 711
Internet Resources 712
Internet Exercises 712
Bibliography 713
Glossary 715
Index 733 |
| any_adam_object | 1 |
| any_adam_object_boolean | 1 |
| author | Shapiro, Alan C. |
| author_facet | Shapiro, Alan C. |
| author_role | aut |
| author_sort | Shapiro, Alan C. |
| author_variant | a c s ac acs |
| building | Verbundindex |
| bvnumber | BV021499175 |
| callnumber-first | H - Social Science |
| callnumber-label | HG4027 |
| callnumber-raw | HG4027.5 |
| callnumber-search | HG4027.5 |
| callnumber-sort | HG 44027.5 |
| callnumber-subject | HG - Finance |
| classification_rvk | QM 355 QP 305 QP 700 QP 710 |
| classification_tum | WIR 680f |
| ctrlnum | (OCoLC)62133426 (DE-599)BVBBV021499175 |
| dewey-full | 658.1599 |
| dewey-hundreds | 600 - Technology (Applied sciences) |
| dewey-ones | 658 - General management |
| dewey-raw | 658.1599 |
| dewey-search | 658.1599 |
| dewey-sort | 3658.1599 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| edition | 8. ed. |
| format | Book |
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| genre | 1\p (DE-588)4123623-3 Lehrbuch gnd-content |
| genre_facet | Lehrbuch |
| id | DE-604.BV021499175 |
| illustrated | Illustrated |
| index_date | 2024-07-02T14:14:52Z |
| indexdate | 2024-07-09T20:37:11Z |
| institution | BVB |
| isbn | 0471737690 9780471737698 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-014715925 |
| oclc_num | 62133426 |
| open_access_boolean | |
| owner | DE-703 DE-91 DE-BY-TUM DE-92 DE-20 DE-521 DE-2070s DE-188 |
| owner_facet | DE-703 DE-91 DE-BY-TUM DE-92 DE-20 DE-521 DE-2070s DE-188 |
| physical | XXII, 745 S. graph. Darst. |
| publishDate | 2006 |
| publishDateSearch | 2006 |
| publishDateSort | 2006 |
| publisher | Wiley |
| record_format | marc |
| spelling | Shapiro, Alan C. Verfasser aut Multinational financial management Alan C. Shapiro 8. ed. Hoboken, NJ Wiley 2006 XXII, 745 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Entreprises multinationales - Finances Multinationales Unternehmen International business enterprises Finance Internationaler Finanzausgleich (DE-588)4162068-9 gnd rswk-swf Finanzmanagement (DE-588)4139075-1 gnd rswk-swf Multinationales Unternehmen (DE-588)4075092-9 gnd rswk-swf Internationales Management (DE-588)4114040-0 gnd rswk-swf Finanzierung (DE-588)4017182-6 gnd rswk-swf Finanzplanung (DE-588)4017200-4 gnd rswk-swf 1\p (DE-588)4123623-3 Lehrbuch gnd-content Multinationales Unternehmen (DE-588)4075092-9 s Finanzmanagement (DE-588)4139075-1 s DE-604 Finanzierung (DE-588)4017182-6 s Internationales Management (DE-588)4114040-0 s 2\p DE-604 Finanzplanung (DE-588)4017200-4 s 3\p DE-604 Internationaler Finanzausgleich (DE-588)4162068-9 s 4\p DE-604 HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014715925&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis 1\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk 2\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk 3\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk 4\p cgwrk 20201028 DE-101 https://d-nb.info/provenance/plan#cgwrk |
| spellingShingle | Shapiro, Alan C. Multinational financial management Entreprises multinationales - Finances Multinationales Unternehmen International business enterprises Finance Internationaler Finanzausgleich (DE-588)4162068-9 gnd Finanzmanagement (DE-588)4139075-1 gnd Multinationales Unternehmen (DE-588)4075092-9 gnd Internationales Management (DE-588)4114040-0 gnd Finanzierung (DE-588)4017182-6 gnd Finanzplanung (DE-588)4017200-4 gnd |
| subject_GND | (DE-588)4162068-9 (DE-588)4139075-1 (DE-588)4075092-9 (DE-588)4114040-0 (DE-588)4017182-6 (DE-588)4017200-4 (DE-588)4123623-3 |
| title | Multinational financial management |
| title_auth | Multinational financial management |
| title_exact_search | Multinational financial management |
| title_exact_search_txtP | Multinational financial management |
| title_full | Multinational financial management Alan C. Shapiro |
| title_fullStr | Multinational financial management Alan C. Shapiro |
| title_full_unstemmed | Multinational financial management Alan C. Shapiro |
| title_short | Multinational financial management |
| title_sort | multinational financial management |
| topic | Entreprises multinationales - Finances Multinationales Unternehmen International business enterprises Finance Internationaler Finanzausgleich (DE-588)4162068-9 gnd Finanzmanagement (DE-588)4139075-1 gnd Multinationales Unternehmen (DE-588)4075092-9 gnd Internationales Management (DE-588)4114040-0 gnd Finanzierung (DE-588)4017182-6 gnd Finanzplanung (DE-588)4017200-4 gnd |
| topic_facet | Entreprises multinationales - Finances Multinationales Unternehmen International business enterprises Finance Internationaler Finanzausgleich Finanzmanagement Internationales Management Finanzierung Finanzplanung Lehrbuch |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=014715925&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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