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- 2024-02-22 发布于四川
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Globalizationandthe
MultinationalFirmChapterOne
What’sSpecialabout“International”Finance?GoalsforInternationalFinancialManagementGlobalizationoftheWorldEconomyMultinationalCorporationsChapterOneOutline
What’sSpecialabout
“International”Finance?ForeignExchangeRiskPoliticalRiskMarketImperfectionsExpandedOpportunitySet
What’sSpecialabout
“International”Finance?ForeignExchangeRiskThisisriskthatforeigncurrencyprofitsmayevaporateindollartermsduetounanticipatedunfavorableexchangeratemovements.Suppose$1=￥100andyoubuy10sharesofToyotaat￥10,000pershare.Oneyearlatertheinvestmentisworthtenpercentmoreinyen:￥110,000.But,iftheyenhasdepreciatedto$1=￥120,yourinvestmenthasactuallylostmoneyindollarterms.
What’sSpecialabout
“International”Finance?PoliticalRiskSovereigngovernmentshavetherighttoregulatethemovementofgoods,capital,andpeopleacrosstheirborders.Theselawssometimeschangeinunexpectedways.
MarketImperfectionsLegalrestrictionsonthemovementofgoods,people,andmoneyTransactionscostsShippingcostsTaxarbitrageWhat’sSpecialabout
“International”Finance?
TheExampleofNestlé’sMarketImperfectionNestléusedtoissuetwodifferentclassesofcommonstockbearersharesandregisteredshares.Foreignerswereonlyallowedtobuybearershares.Swisscitizenscouldbuyregisteredshares.Thebearerstockwasmoreexpensive.OnNovember18,1988,Nestléliftedrestrictionsimposedonforeigners,allowingthemtoholdregisteredsharesaswellasbearershares.
Nestlé’sForeignOwnershipRestrictions12,00010,0008,0006,0004,0002,000011203191824Source:FinancialTimes,November26,1988p.1.Adaptedwithpermission.SFBearershareRegisteredshare
TheExampleofNestlé’sMarketImperfectionFollowingthis,thepricespreadbetweenthetwotypesofsharesnarroweddramatically.ThisimpliesthattherewasamajortransferofwealthfromforeignshareholderstoSwiss
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