第三十二章 跨国公司财务.pptVIP

Reasons for Deviations from IRP Transactions Costs The interest rate available to an arbitrageur for borrowing, ib,may exceed the rate he can lend at, il. There may be bid-ask spreads to overcome, Fb/Sa F/S Thus (Fb/Sa)(1 + i￥l) ? (1 + i￥ b) ? 0 Capital Controls Governments sometimes restrict import and export of money through taxes or outright bans. Equilibrium Exchange Rate Relationships ?$ - ?￡ IRP PPP FE FRPPP IFE FP A recipe for international decision makers: 1. Estimate future cash flows in foreign currency. 2. Convert to U.S. dollars at the predicted exchange rate. 3. Calculate AP