International finance management - 7674 Words

Chapter 1 Multinational Financial Management An Overview Lecture Outline Managing the MNC Facing Agency Problems Management Structure of an MNC Why Fimrs Pursue International Business Theory of Comparative Advantage Imperfect Markets Theory Product Cycle Theory How Firms Engage in International Business International Trade Licensing Franchising Joint Ventures Acquisitions of Existing Operations Establishing New Foreign Subsidiaries Summary of Methods Valuation Model for an MNC Domestic Model Valuing International Cash Flows Uncertainty Surrounding an MNCs Cash Flows Uncertainty of an MNCs Cost of Capital Organization of the Text Chapter Theme This chapter introduces the multinational corporation as having similar goals†¦show more content†¦Explain how the theory of comparative advantage relates to the need for international business. ANSWER The theory of comparative advantage implies that countries should specialize in production, thereby relying on ot her countries for some products. Consequently, there is a need for international business. b. Explain how the product cycle theory relates to the growth of an MNC. ANSWER The product cycle theory suggests that at some point in time, the firm will attempt to capitalize on its perceived advantages in markets other than where it was initially established. Imperfect Markets. a. Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets. ANSWER Because of imperfect markets, resources cannot be easily and freely retrieved by the MNC. Consequently, the MNC must sometimes go to the resources rather than retrieve resources (such as land, labor, etc.). b. If perfect markets existed, would wages, prices, and interest rates among countries be more similar or less similar than under conditions of imperfect markets Why ANSWER If perfect markets existed, resources would be more mobile and could therefore be transferred to those count ries more willing to pay a high price for them. As this occurred, shortages of resources in any particular country would be alleviated and the costs of such resources would be similar across countries. 4. International Opportunities. Do you think the acquisition of aShow MoreRelatedImpact Technology Has Brought on the Management of International Finance680 Words   |  3 PagesFindings : To identify the positive and negative impact that changes in technology have brought on the management of international finance. With internet being one of the developments of IT, the results showed that it has culminated in improved customer convenience. Yet despite other advances in the management of IF, this arm has thrashed to fully control the power and promise of technology, with the customers looking forward to solutions that are not only faster and cheaper, but that also providesRead MoreCrosswell1474 Words   |  6 PagesGRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT LEN RUSHFIELD MBA 610.63 INTERNATIONAL FINANCE SPRING 2005 WEDNESDAY 6:00 PM – 10:00 PM WESTLAKE VILLAGE CENTER SYLLABUS 1 International Finance MBA 610.63 Westlake Village Center Wednesday 1/5-2/16/05 Len Rushfield (310) 474-5848 (603) 843-9683 (efax) leonard.rushfield@pepperdine.edu/ asiaptner@aol.com Course Objectives MBA 610.63 is intended to provide a foundation of understanding of international finance and the critical options for corporateRead MoreArticle Analysis: On the Contradictions of the New International Financial Architecture: Another Procrustean Bed for Emerging Markets?1404 Words   |  6 Pagesin the case or article? The main concept of the article is to explain why the New International Financial Architecture (NIFA) was created and who is being benefited from this approach. The discussion begins with an examination of the power structures of the global political economy by focusing on the continued dominance of the USA. The article presents the contradictory relations between USA and global finance will be explored so as to shed more critical light on the NIFA. This article criticallyRead MoreQ1. Summarize the Globalization Debate. What Are the Major Interest Groups in the World Economy? How Are They Affected by Different Element of Globalization?2682 Words   |  11 Pagesattachment to identities and citizenship, the lifting of the barriers of visas and passports, the consecration of a new era when national sovereignty and the authority of the nation-state is fading away in favor of regional groupings, international organizations and international legality and law. This means the beginning of the return to the universal trend which is imposed by human instinct, but in a broader environment and in an evident endeavor to dominate the world. Today’s universalism is marked byRead MoreRunning Head : Leading Organizational Change4434 Words   |  18 Pagestitle page with course name and date located on title page (APA, 2010, p. 23, 2.02). The title page should contain the title of the paper, the author s name, and the institutional affiliation. Carlos Simmons BMAL 501 ? Executive Leadership and Management Liberty University August 15, 2015 Abstract Comment by HJ: The term ?Abstract? is not in boldface per APA p. 41. Keywords in APA format are not in bold. See APA manual p. 41 or http://owl.english.purdue.edu/owl/resource/560/01. The purposeRead MoreJeff Madura Solution Manual1199 Words   |  5 PagesSOLUTION MANUAL INTERNATIONAL FINANCIAL Read Online and Download PDF Ebook Jeff Madura Solution Manual International Financial. Download Jeff Madura Solution Manual International Financial PDF file for free, Get many PDF Ebooks from our online library related with Jeff Madura Solution Manual International Financial.... jeff-madura-solution-manual-international-financial.pdf filetype: PDF INTERNATIONAL CORPORATE FINANCE JEFF MADURA SOLUTION MANUAL Read Online and Download PDF Ebook International CorporateRead MoreEssay on MBA detail course outline1314 Words   |  6 Pages(Evening): 1.5 years (Quarters, 3, 4, 7, 8 14) General Management 1st Quarter Effective : Spring Quarter 2011 Human Resource Management Finance Accounting Banking Finance †¢ Organizational Communication †¢ Organizational Communication †¢ Organizational Communication †¢ Organizational Communication †¢ Principles of Management †¢ Principles of Management †¢ Principles of Management †¢ Principles of Management †¢ Research Methods †¢ Research Methods †¢ ResearchRead MoreSources Of Finance For Synergy International Limited1627 Words   |  7 Pagessources of finance for Synergy International Limited to enable the company to invest in new machinery, at a cost of approximately  £225,000, in order to manufacture mobile phone covers for the Samsung S7 Edge. Also included in this report, are the information needs of the different decision makers. There are long term external sources of finance that Synergy International Limited could access; they could issue preference or ordinary shares although there would be issue costs. Finance, in the wayRead MoreThe Economic Environment in Chile Essay1083 Words   |  5 Pagespopulation of about 17.46 million people. Chile is quite well known for international trade. It was ranked 18th out of the 49 most competitive economies in the world by the 1996 World Competitiveness Report which was publishes by the International Institute for Management Development in Lausanne Switzerland. The official language of Chile is Spanish. However, many well – educated business persons speak English. It is an ideal international market to enter for Alvernian; a manufacturer of leisure and gymRead MoreAaoifi997 Words   |  4 PagesInternational Standards for Islamic Finance AAOIFI – Introduction AAOIFI IFRS - Comparison on structural objectives AAOIFI IFRS - Categories of accounting standards for Islamic financial institutions AAOIFI IFRS - Examples of main differences Adoption of AAOIFI Standards How AAOIFI Standards Support Islamic Finance Industry www.aaoifi.com For more information on the Institute of Management Accountants, visit www.imanet.org AAOIFI – Introduction †¢ Responsible for formulation and issuance