国际金融市场管理Ch03InternationalFinancialMarkets教学教材演示幻灯片.pptVIP

Quantity of $ Interest Rate for $ S D Quantity of Real Interest Rate for Real S D Why U.S. Dollar Interest Rates Differ from Brazilian Real Interest Rates The curves are further to the right for the dollar because the U.S. economy is larger. The curves are higher for the Brazilian Real because of the higher inflation in Brazil. Comparing Interest RatesAmong Currencies As the demand and supply schedules change over time for a specific currency, the equilibrium interest rate for that currency will also change. Note that the freedom to transfer funds across countries causes the demand and supply conditions for funds to be somewhat integrated, such that interest rate movements become integrated too. International Stock Markets In addition to issuing stock locally, MNCs can also obtain funds by issuing stock in international markets. This will enhance the firm’s image and name recognition, and diversify the shareholder base. The stocks may also be more easily digested. Note that market competition should increase the efficiency of new issues. Stock issued in the U.S. by non-U.S. firms or governments are called Yankee stock offerings. Many of such recent stock offerings resulted from privatization programs in Latin America and Europe. Non-U.S. firms may also issue American depository receipts (ADRs), which are certificates representing bundles of stock. ADRs are less strictly regulated. International Stock Markets Check out the performance of ADRs at . Online Application International Financial Markets 3 Chapter South-Western/Thomson Learning ? 2003 To describe the background and corporate use of the following international financial markets: foreign exchange market, Eurocurrency market, Eurocredit market, Eurobond market, and international stock markets. Chapter Objectives Motives for Using International Financial Markets The markets for real or financial assets are prevented from complete integration by barriers such as tax differentials, tariffs, quotas, labor