TAILIEUCHUNG - Lecture International financial management - Chapter 1: Multinational financial management: Concepts

In this chapter, students will be able to understand: Identify the management goal and organizational structure of the Multinational Corporation (MNC), describe the key theories that justify international business, explain the common methods used to conduct international business, provide a model for valuing the MNC. | 1 Instructor: Ajab K. Burki MBA (Fin)- IBA Karachi, BSIT(Hons), BA (Economics) 1 2 2 Part 1 The International Financial Environment 2 3 1 Multinational Financial Management: Concepts International companies are importers and exporters; they have no investment outside of their home country. Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market. 3 3 4 1 Multinational Financial Management: Concepts Global companies have invested and are present in many countries. They market their products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency. Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market. 4 4 5 1 Multinational Financial Management: An Overview Identify the management goal and organizational structure of the Multinational Corporation (MNC). Describe the key theories that justify international business Explain the common methods used to conduct international business Provide a model for valuing the MNC 5 Chapter Objectives 5 6 Managing the MNC Managers are expected to make decisions that will maximize the stock price. Focus of this text: MNCs whose parents fully own foreign subsidiaries (. parent is sole owner of subsidiary.) Finance decisions are influenced by other business discipline functions: Marketing Management Accounting and information systems 7 Agency Problems The conflict of goals between managers and shareholders 8 Agency Costs Definition: Cost of ensuring that managers maximize shareholder wealth Costs are normally higher for MNCs than for purely domestic firms for several reasons: Monitoring .

• Tài chính doanh nghiệp
• International financial management
• Quản lý tài chính quốc tế
• International companies
• Multinational companies
• Global companies
• Transnational companies
• 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