TAILIEUCHUNG - Lecture Global financial management - Topic 1A: Country selection/research and suggested approach

In this chapter, students will be able to understand: Evaluate the advantages and disadvantages of alternative systems (free floating, fixed, managed float) for the determination of exchange rates; understand the determinants of exchange rates (qualitative); how to forecast (quantitative) exchange rates using models: purchasing power parity, relative purchasing power parity, interest rate parity, an unbiased forward rate. | 0 Global Financial Management Topic #1a: Country Selection / Research and Suggested approach L. Gattis Country Selections 1 Europe 1. Ire 2. Uk 3. Estonia 4. Ire 5. Poland Latin America 1. Uru 2. Brazil 3. Mexico 4. Mexico 5. Mexico Africa 1. Mauritis 2. Moroc 3. South Af 4. Mor / South Africa 5. Moroc AustralAsia 1. Australia 2. India 3. Singapore 4. China 5. Singapore Country Risk Selection Methodology 2 What was your methodology for country selection? What were the key factors? Empirical Research on Country Selection 3 Studies that relate FDI with country characteristics Kobrin found that manufacturing FDI correlated to economic, culture, and demographic factors (but not political risk – which other research has found to be important) Hayakawa, et al (2011) found that socioeconomic condition, investment profile (Exprop./Repat.) and external conflict most important political risk factors only exchange rate stability matters for financial risk Asiedu (2002) found that expropriation risk not important Research on corruption is mixed Ali, et al (2010) found that property rights was most important for non-primary sectors (primary sectors use raw materials) Research: Survey of Risk Factors 4 Brush, Maritan, Karnani (1999) found that managers consider different risk factors depending on the degree of interdependence with existing plants and location of headquarters. (Risk Factors) Domestic plant relative to HQ Foreign plant relative to HQ Integrated with other firm plants Integrated, Domestic Integrated, Foreign Independent from other firm plants Independent, Domestic Independent, Foreign Integrated factors include access to raw materials, capital, technology, customers, suppliers (select location to get access for network) Foreign plants locate more on the basis of national and regional characteristics Capital Budgeting 4 Project Specific Risk Measure Approach 5 Country risk and opportunity ratings do not .

• Tài chính doanh nghiệp
• Global finance
• Global financial management
• Lecture Global financial management
• Foreign exchange rate systems
• Exchange rates
• Benefits of systems
• Global valuation
• Capital budgeting
• Capital budgeting formulas
• Global Corporate Finance
• Global financial problems
• Corporate governance global
• 26 new case studies
• Text emphasizes shareholder
• Domestic capital budgeting
• Free cash flows
• Cost of capital
• Managing country risk
• Country risk
• Country risk analysis
• Indirect prices
• Obtaining exchange rates
• Foreign exchange
• Foreign exchange risks
• Translation exposure
• Competitive exposure
• Real currency appreciation
• Retail foreign exchange transactions
• Debit transactions
• Retail bid