College aantekeningen

Multinational Finance everything for the exam

1 keer verkocht

Vak
Multinational Finance

Instelling
Radboud Universiteit Nijmegen (RU)

Boek
International Financial Management

All lectures and chapters from Multinational Finance. Above every lecture is stated which chapter belongs with it. The information from the powerpoints + additional explanations coming from the book and the lectures. Examples, schemes and formulas are included as well.

[Meer zien]

Laatste update van het document: 3 jaar geleden

Voorbeeld 4 van de 77 pagina's

Bekijk voorbeeld

Geupload op 15 maart 2021
Bestand laatst geupdate op 23 maart 2021
Aantal pagina's 77
Geschreven in 2019/2020
Type College aantekeningen
Docent(en) Sven nolte
Bevat Alle colleges

Volgen

kikipuijk Lid sinds 8 jaar 28 documenten verkocht

€6,09

In winkelwagen

Op verlanglijstje

100% tevredenheidsgarantie
Direct beschikbaar na je betaling
Lees online óf als PDF
Geen vaste maandelijkse kosten

Multinational Finance Lectures
Part 1: The International Financial Environment
- Lecture and chapter 1, MN Financial Management: An Overview
- Lecture & chapter 2, International Flow of Funds
- Lecture & chapter 3, International Financial markets
- Lecture 3+, Additional Reading, Cost of Capital and Capital Structure
- Lecture & chapter 4, Exchange Rate Determination
- Lecture & chapter 5, Currency Derivatives

Part 2: Exchange Rate Behaviour
- Lecture & Chapter 6, Exchange Rate and the Role of Governments
- Lecture & Chapter 7, International Arbitrage and Interest Rate Parity
- Lecture & Chapter 8, Relationships among inflation, interest and exchange rates

Part 3: Exchange Rate Risk Management
- Lecture & Chapter 9, Forecasting Exchange Rates
- Lecture & Chapter 10, Measuring Exposure to Exchange Rate Fluctuations
- Lecture & Chapter 11, Managing Transaction Exposure
- Lecture & Chapter 12, Managing Economic Exposure and Translation Exposure
Part 4: Long-Term Asset and Liability Management
- Lecture & Chapter 13, Foreign Direct Investment
- Lecture 13+, Additional Reading 2, Multinational Capital Budgeting
- Lecture & Chapter 14, Country Risk Analysis
- Lecture & Chapter 15, Long-Term Financing
- Lecture & Chapter 16, Ethics
Part 5: Short-Term Investment & Financing Decisions
- Lecture & Chapter 17, Financing International Trade
- Lecture & Chapter 18, Short Term Financing
- Lecture & chapter 19, International Cash Management

Week 1

,Lecture 0, Welcome
Multinational corporation: a corporation with facilities and other assets in at least one
country other than its home country.
Pros for MNC:
- Provide investments.
- Provide jobs.
- Development of infrastructure.
- Transfer of technology.
- Access among countries.
Cons against MNC:
- Decapitalization of countries.
- Income inequality.
- Exploit poor workers/countries.
- Dependency of countries.
- Reduce domestic market shares.
What is it all about?
Part I -International Financial Environment.
Part II -Exchange Rate Behavior.
Part III -Exchange Rate Risk Management.
- Measuring and managing Transaction Exposure, Economic Exposure, Translation Exposure.
Part IV -Long-Term Asset and Liability Management.
- Financing, FDI, Country Risk Analysis.
Part V -Short-Term Asset and Liability Management.
- Financing, Int. Cash Management.

Part 1: The International Financial Environment

,Lecture 1, MN Financial Management: An Overview
Chapter 1
When you have a MNC and deal with other countries,
you need to go through foreign exchange markets.

MNC – Goals and Conflict
- Goal financial manager: maximize shareholders wealth.
 maximize value of entire MNC (max. share price)
- Constraints interfering with goals:
* environmental constraints (pollution controls, building codes... which increase costs of
production)
* regulatory constraints (employee rights, tax law, restrictions on earnings remittance…
which may reduce CFs to parent)
* ethical constraints (working standards, bribes to government...)
- Corporate Governance: system by which a company is directed and controlled. Do
managers act in the best interest of shareholders?
 agency Problem: conflict of goals
Recall: agency theory.
- Agency relationship exists whenever: someone (the principal) contracts with someone else
(the agent) to take actions on behalf of the principal and represent the principal’s interests.
- The shareholders (principal) hire the manager (agent) and he performs.
- Asymmetric information because shareholders are not involved in everything of the
information process. Gives manager some power.
- Agency problem: incentives don’t align.
* shareholders try to provide incentives for agent to act in their interest
Agency costs and corporate control
Providing these incentives come with some costs.
- Direct costs:
* monitoring
* compensation
- Indirect costs:
* Free Cash Flow Hypothesis
* managers decide in favor of other stakeholders
- Corporate control:
* compensation schemes aligned with shareholder interest (if company performs well,

, manager gets paid more)
* hostile takeover threat (if company performs bad and might be taken over, the manager
will be fired)
* investor monitoring
Agency costs in MNC
This works in a particular company or country. But in a MNC you have different countries,
companies and managers. This makes it harder and more expensive to monitor.
- Monitoring distant managers.
- Culture.
- Complexity of operation and communication.
Do local managers maximize value of MNC or rather value of subsidiary?
Reduction of agency cost via management control?
* decentralized vs. centralized management styles
Centralized management style: you have a management board which monitors the entire
company. Also if it’s in 2 countries for example
Decentralized management style: managers right at the subsidiary. So a manager for every
country or regents. And then there’s one big headquarter which manages all the managers.
- Subunit related knowledge and experience, efficient decision, cultural skills, local network.
- Less control, fragmented subunits, costs higher, inefficiencies due to duplication of
activities.
Why engage in international business?
Theories of international business.
- Economic related: does international business increase or decrease a nation’s wealth?
* theory of absolute and comparative advantage
* imperfect markets theory
- Business related: why are firms motivated to expand their business internationally?
* product cycle theory
* global strategies
Absolute and comparative advantage
- Absolute advantage: a country enjoys absolute advantage over another country in the
production of a product when it uses fewer resources to produce that product.
- Comparative advantage: when a country can produce a good at a lower cost in terms of
other goods.
Imperfect Market Theory
Different countries have different factors that are relevant for production but there can be a
immobility of these factors. The country that has the factor has an advantage of producing a
good with that factor.
- Unrestricted mobility of production factors.
* freely transferable
* removes comparative advantage because you can just move the factor
- Restricted mobility of production factors.

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, creditcard of je Stuvia-tegoed en je bent klaar. Geen abonnement nodig.

Direct to-the-point

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper kikipuijk. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €6,09. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 68175 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Begin nu gratis

College aantekeningen

Multinational Finance everything for the exam

Document informatie

Onderwerpen

Gekoppeld boek

Meer samenvattingen voor studieboek

Geschreven voor

Verkoper

Ontvangen beoordelingen

Voorbeeld van de inhoud