• Tài chính doanh nghiệp - Managing economic exposure and translation exposureTài chính doanh nghiệp - Managing economic exposure and translation exposure

    Should the firm attempt to increase or reduce sales in new or existing foreign markets? Should the firm increase or reduce its dependency on foreign suppliers? Should the firm establish or eliminate production facilities in foreign markets? Should the firm increase or reduce its level of debt denominated in foreign currencies?

    pptx19 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 837 | Lượt tải: 0

  • Tài chính doanh nghiệp - Managing transaction exposureTài chính doanh nghiệp - Managing transaction exposure

    Allows an MNC to lock in a specific exchange rate at which it can purchase a currency and hedge payables. A forward contract is negotiated between the firm and a financial institution. The contract will specify the: currency that the firm will pay currency that the firm will receive amount of currency to be received by the firm rate at which th...

    pptx30 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 876 | Lượt tải: 0

  • Tài chính doanh nghiệp - Relationships among inflation, interest rates and exchange ratesTài chính doanh nghiệp - Relationships among inflation, interest rates and exchange rates

    Any points off of the PPP line represent purchasing power disparity. If the exchange rate does not move as PPP theory suggests, there is a disparity in the purchasing power of the two countries. Point C in Exhibit 8.3 represents a situation where home inflation (Ih) exceeds foreign inflation (If ) by 4 percent. Yet, the foreign currency appreciate...

    pptx35 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 926 | Lượt tải: 0

  • Tài chính doanh nghiệp - Exchange rate behaviorTài chính doanh nghiệp - Exchange rate behavior

    Governments sometimes intervene to prevent their currencies from moving too far in a certain direction. Critics suggest that managed float allows a government to manipulate exchange rates to benefit its own country at the expense of others. Currencies of most large developed countries are allowed to float, although they may be periodically manage...

    pptx30 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 934 | Lượt tải: 0

  • Tài chính doanh nghiệp - Currency derivativesTài chính doanh nghiệp - Currency derivatives

    Similar to forward contracts in terms of obligation to purchase or sell currency on a specific settlement date in the future. Differ from forward contracts because futures have standard contract specifications: Standardized number of units per contract (See Exhibit 5.2) Offer greater liquidity than forward contracts Typically based on U.S. doll...

    pptx33 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 871 | Lượt tải: 0

  • Tài chính doanh nghiệp - Exchange rate determinationTài chính doanh nghiệp - Exchange rate determination

    Relative Inflation: Increase in U.S. inflation leads to increase in U.S. demand for foreign goods, an increase in U.S. demand for foreign currency, and an increase in the exchange rate for the foreign currency. (See Exhibit 4.5) Relative Interest Rates: Increase in U.S. rates leads to increase in demand for U.S. deposits and a decrease in demand f...

    pptx23 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 870 | Lượt tải: 0

  • Tài chính doanh nghiệp - International financial marketsTài chính doanh nghiệp - International financial markets

    When the euro is appreciating against the dollar (based on an upward movement of the direct exchange rate of the euro), the indirect exchange rate of the euro is declining. When the euro is depreciating (based on a downward movement of the direct exchange rate) against the dollar, the indirect exchange rate is rising.

    pptx44 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 801 | Lượt tải: 0

  • Tài chính doanh nghiệp - International flow of fundsTài chính doanh nghiệp - International flow of funds

    Removal of the Berlin Wall: Led to reductions in trade barriers in Eastern Europe. Single European Act of 1987: Improved access to supplies from firms in other European countries. North American Free Trade Agreement (NAFTA): Allowed U.S. firms to penetrate product and labor markets that previously had not been accessible. General Agreement on Ta...

    pptx40 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 824 | Lượt tải: 0

  • Tài chính doanh nghiệp - The international financial environmentTài chính doanh nghiệp - The international financial environment

    Parent control of agency problems Parent should clearly communicate the goals for each subsidiary to ensure managers focus on maximizing the value of the subsidiary. Corporate control of agency problems Entire management of the MNC must be focused on maximizing shareholder wealth. Sarbanes-Oxley Act (SOX) Ensures a more transparent process fo...

    pptx36 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 890 | Lượt tải: 0

  • Tài chính doanh nghiệp - Chapter 25: Insurance and pension fund operationsTài chính doanh nghiệp - Chapter 25: Insurance and pension fund operations

    Property and casualty reinsurance: Effectively allocates a portion of insurance companies’ return and risk to other insurance companies Is similar to a commercial bank’s acting as a lending agent by allowing other banks to participate in the loan Allows a company to write larger policies because a portion of the risk involves will be assumed by ...

    ppt61 trang | Chia sẻ: thuychi20 | Ngày: 07/04/2020 | Lượt xem: 864 | Lượt tải: 0