文档介绍：INTERNATIONAL
FINANCIAL
MANAGEMENT
EUN / RESNICK
Second Edition
1
Chapter One
Globalization & the
Multinational Firm
Chapter Objectives:
Understand why it is important to study international finance.
Distinguish international finance from domestic finance.
What’s Special about “International” Finance?
Goals for International Financial Management
Globalization of the World Economy
Multinational anization of the Text
Summary
Chapter One Outline
1
What’s Special about “International” Finance?
Foreign Exchange Risk
Political Risk
Market Imperfections
Expanded Opportunity Set
2
What’s Special about “International” Finance?
Foreign Exchange Risk
The risk that foreign currency profits may evaporate in dollar terms due to unanticipated unfavorable exchange rate movements.
Political Risk
Sovereign governments have the right to regulate the movement of goods, capital, and people across their borders. These laws sometimes change in unexpected ways.
3
Market Imperfections
Legal restrictions on movement of goods, people, and money
Transactions costs
Shipping costs
Tax arbitrage
What’s Special about “International” Finance?
4
Expanded Opportunity Set
It doesn’t make sense to play in only one corner of the sandbox.
True for corporations as well as individual investors.
What’s Special about “International” Finance?
5
The focus of the text is to equip the reader with the “intellectual toolbox” of an effective global manager—but what goal should this effective global manager be working toward?
Maximization of shareholder wealth?
or
Other Goals?
Goals for International Financial Management
6
Maximize Shareholder Wealth
Long accepted as a goal in the Anglo-Saxon countries, plications arise.
Who are and where are the shareholders?
In what currency should we maximize their wealth?
7
Other Goals
In other countries shareholders are viewed as merely one among many “stakeholders” of the firm including:
Employees
Suppliers
Customers
In Japan, managers have