ch20MANAGING THE MULTINATIONAL FINANCIAL SYSTEM(跨国公司财务管理Joseph F. Greco)概要1.pptVIP

Multinational Financial Management Alan Shapiro7th Edition J.Wiley Sons Power Points by Joseph F. Greco, Ph.D. California State University, Fullerton CHAPTER 20 MANAGING THE MULTINATIONAL FINANCIAL SYSTEM CHAPTER 0VERVIEW I. THE VALUE OF THE MULTINATIONAL FINANCIAL SYSTEM II. INTERCOMPANY FUND-FLOW MECHANISMS: COSTS AND BENEFITS III.DESIGNING A GLOBAL REMITTANCE POLICY I. THE VALUE OF THE MULTINATIONAL FINANCIAL SYSTEM I. THE MNC’s DISTINCT VALUE A. Allows MNC to arbitrage 1. Tax systems 2. Financial markets 3. Regulatory systems THE VALUE OF THE MULTINATIONAL FINANCIAL SYSTEM A. Tax Arbitrage 1. Wide variations exist in global tax systems 2. Firms reduce taxes paid -move funds to low-tax jurisdiction THE VALUE OF THE MULTINATIONAL FINANCIAL SYSTEM B. Financial Market Arbitrage 1. Assume imperfect markets because a. Formal barriers to trade exist b. Informal also exist c. Imperfections in domestic capital markets exist. THE VALUE OF THE MULTINATIONAL FINANCIAL SYSTEM C. Regulatory Arbitrage 1. Arises when subsidiary profits vary due to local regulations. 2. Example: a. Government price controls b. Union wage pressures, etc. 3. Firms may disguise true profits in order to gain better negotiations II. INTERCOMPANY FUND-FLOWMECHANISMS: COSTS AND BENEFITS II. INTERCOMPANY FUND-FLOW MECHANISMS A. MNC Policy: Unbundling breaks up a total international transfer of funds between pairs of affiliates into separate components. B. Example: Headquarters breaks down charges for corporate overhead by affiliate. INTERCOMPANY FUND-FLOWMECHANISMS: COSTS AND BENEFITS C. Inter-company Fund Flows 1. Tax Factors: a. Taxes available on 1.) corporate income 2.) personal income (includes dividends) b. U.S. Tax System tax income remitted abroad on corporate income tax. INTERCOMPANY FUND-FLOWMECHANISMS: COSTS AND BENEFITS c. Offset: Foreign