Multinational Financial Management Alan Shapiro 7th Edition J.Wiley Sons文档.ppt

Multinational Financial Management Alan Shapiro7th Edition J.Wiley Sons Power Points by Joseph F. Greco, Ph.D. California State University, Fullerton CHAPTER 1 Introduction: Multinational Enterprise and Multinational Financial Management CHAPTER OVERVIEW: I. The Rise of the Multinational Corporation II. The Internationalization of Business and Finance III. Multinational Financial Management: Theory and Practice PART 1 THE RISE OF THE MULTINATIONAL CORPORATION I. The MNC: Definition a company with production and distribution facilities in more than one country. THE RISE OF THE MULTINATIONAL CORPORATION A. Forces Changing Global Markets Massive deregulation Collapse of communism Privatizations of state-owned industries Revolution in information technology Wave of MA Emergence of free market policies Rise of Big Emerging Markets (BEMs) THE RISE OF THE MULTINATIONAL CORPORATION B. Prime Transmitter of Competitive Forces in the Global Economy: The MNC emphases group performance such as Global coordinated allocation of resources Market – entry strategy Ownership of foreign operations Production, marketing and financial activities THE RISE OF THE MULTINATIONAL CORPORATION C. EVOLUTION OF THE MNC Reasons to Go Global: 1. More raw materials 2. New markets 3. Minimize costs of production THE RISE OF THE MULTINATIONAL CORPORATION RAW MATERIAL SEEKERS exploit markets in other countries historically first to appear modern-day counterparts British Petroleum Exxon THE RISE OF THE MULTINATIONAL CORPORATION MARKET SEEKERS produce and sell in foreign markets heavy foreign direct investors representative firms: IBM MacDonald’s Nestle Levi Strauss THE RISE OF THE MULTINATIONAL CORPORATION COST MINIMIZERS seek lower-cost production abroad motive: to remain cost competitive Texas Instruments Intel Seagate Technology THE RISE OF THE MULTINATIONAL CORPORATION D. THE MNC: A BEHAVIORAL VIEW 1. State of