财务管理 跨国公司财务管理(Multinational financial management).pptVIP

Multinational financial management 跨国公司财务管理 1.International opportunities refer to more investment opportunities and lower financing cost. 2.International risks refer to exchange rate risk, overseas business risk and political risk. Economic exposure 1.Intitial investment 2.Demand of consumers 3.price 4.Variable costs 5.Fixed costs 6.Project life 7.Salvage value 8.Restrictions on fund transfer 9.Tax law 10.Exchange rate 11.Required rate of return * Benefits of direct foreign investment Subsidiary versus parent perspective Remittance of subsidiary’s return to parent Input variables in multinational capital budgeting Factors to consider in multinational capital budgeting Adjusting for the risk factor in project evaluation Multinational investment management * 1.Attract new sources of demand 2.Enter profitable markets 3.Fully benefit form economies of scale 4.Use foreign factors of production 5.Use foreign raw materials 6.Use foreign technology 7.Exploit monopolistic advantages 8.React to exchange rate movements 9.React to trade restrictions 10.Diversify internationally Benefits of DFI * 1.Tax differentials 2.Resteicted remittances 3.Excessive remittances 4.Exchange rate movements Subsidiary versus parent perspective * 1.Corporate taxes paid to host government 2.Retained earnings by subsidiary 3.Withholding tax paid to host government Process of remitting subsidiary earnings to the parent * Input variables in multinational capital budgeting * 1.Exchange rate fluctuations 2.Inflation 3.Financing arrangement 4.Blocked funds 5.Uncertain salvage value 6.Impact of project on prevailing cash flows 7.Host government incentives Factors to consider in multinational capital budgeting * 1.risk-adjusted discount rate 2.Sensitivity analysis 3.Simulation Adjusting risk factor in project evaluation * Multinational sources of fund Methods of multinational financing Multinational financing risk management Multinational financing management * 1.Internal fund of multinational cor