跨国公司财务第1章全球化与跨国企业.pptVIP

NAFTA The North American Free Trade Agreement (NAFTA) calls for phasing out impediments to trade between Canada, Mexico and the United States over a 15-year period beginning in 1994. For Mexico, the ratio of export to GDP has increased dramatically from 2.2% in 1973 to 29% in 2006. The increased trade has resulted in increased numbers of jobs and a higher standard of living for all member nations. 1-* 第二十八页，共四十九页。 1.3.4 Privatization The selling off state-run enterprises to investors is also known as “Denationalization”. Often seen in socialist economies in transition to market economies. By most estimates this increases the efficiency of the enterprise. Often spurs a tremendous increase in cross-border investment. 1-* 第二十九页，共四十九页。 1.4 Multinational Corporations  A firm that has incorporated on one country and has production and sales operations in other countries. There are about 60,000 MNCs in the world. Many MNCs obtain raw materials from one nation, financial capital from another, produce goods with labor and capital equipment in a third country and sell their output in various other national markets. 1-* 第三十页，共四十九页。 Benefits ways of MNCs Economy of scale ------spreading cost ------global purchasing ------utilizing tech and know-how Underpriced labor services Special RD 第三十一页，共四十九页。 Top 10 MNCs 1 General Electric United States 2 Vodafone Group PLC United Kingdom 3 General Motors United States 4 British Petroleum Co. PLC United Kingdom 5 Royal Dutch/Shell Group UK/Netherlands 6 ExxonMobile Corporation United States 7 Toyota Motor Corporation Japan 8 Ford Motor Company United States 9 Total France 10 Eléctricité de France France 1-* 第三十二页，共四十九页。 The Theory of Comparative Advantage Definition: a comparative advantage exists when one party can produce a good or service at a lower opportunity cost than another party. 1-* 第三十三页，共四十九页。 The Geometry of Comparative Advantage Consider the example given in appendix 1A. There are two countries, A and B,