LN01Moffett38115_04_FMF_LN01国际金融环境.pptVIP

? 2012 Pearson Education, Inc. All rights reserved. 1-* Chapter 1 Current Multinational Challenges and the Global Economy Current Multinational Financial Challenges and the Global Economy: Learning Objectives Examine the requirements for the creation of value Consider the basic theory, comparative advantage, and its requirements for the explanation and justification for international trade and commerce Discover what is different about international financial management Current Multinational Financial Challenges and the Global Economy: Learning Objectives Detail which market imperfections give rise to the multinational enterprise Consider how globalization process moves a business from domestic focus to financial relationships and composition global in scope Examine possible causes to the limitations to globalization in finance Creating Firm Value in Global Markets Multinational firms (MNEs) are those with operations in more than one country MNEs include for profit, non-profit firms, and NGOs Today, MNEs rely on emerging markets for raw materials, cheaper labor, and outsourced manufacturing MNEs also rely on emerging markets for sales and profits BRICs – the new world markets of Brazil, Russia, India, and China Global Finance in Practice 1.1Global Capital Markets: Entering a New Era Global capital markets expanded from 1980 – 2007 to quadruple the size of global GDP The 2008 financial crises reduced the value of global financial assets by $16 trillion Looking ahead financial assets are expected to grow more inline with GDP, government debt will increase, and GDP will rise faster in emerging market countries Exhibit 1.1 Global Capital Markets The Global Financial Marketplace We may characterize the market place as links among three items Assets – at the heart of the financial asset markets are government issued debt securities. Several financial assets derive their value from these underlying financial instruments. The financial markets depend upon the health o