Chap001尤恩,国际财务管理,英文第五版ppt.ppt

Multinational Corporations  A multinational corporation (MNC) is a firm that has been incorporated in one country and has production and sales operations in other countries. There are about 60,000 MNCs in the world. Many MNCs obtain raw materials from one nation, financial capital from another, produce goods with labor and capital equipment in a third country, and sell their output in various other national markets. Top 10 MNCs 1 General Electric United States 2 Royal Dutch/Shell Group UK/Netherlands 3 Vodafone Group PLC United Kingdom 4 British Petroleum Co. PLC United Kingdom 5 Toyota Motor Corporation Japan 6 ExxonMobile Corporation United States 7 Total France 8 E.ON AG Germany 9 Electricité De France France 10 ArcelorMittal Luxembourg The following slides cover the appendix to Chapter 1. A comparative advantage exists when one party can produce a good or service at a lower opportunity cost than another party. The opportunity cost of making one additional unit of a good (or service) can be defined as the value of some other good that you have to give up in order to produce this additional unit. For example, if you can work as many hours as you like at your current employer and get paid $10 per hour, then the opportunity cost of your leisure is $10 per hour. The Theory of Comparative Advantage The Geometry of Comparative Advantage Consider the example where there are two countries, A and B, who can each produce only food and textiles. Initially they do not trade with one another. The graph on the next slide shows the increase in consumption available to the citizens of countries A and B with trade arising from the differences in their opportunity costs of production. 300 Food Textiles 180 60 200 As a practical matter, the citizens of Country A must choose a point along their production possibilities curve. Suppose they initially choose 200m pounds of food and 60m yards of textiles. A production possibilities curve shows quantities of food or textiles each coun