Multinational Financial Management Alan Shapiro 7th Edition J'Wiley - PowerPoint PPT Presentation

Loading...

PPT – Multinational Financial Management Alan Shapiro 7th Edition J'Wiley PowerPoint presentation | free to view - id: 1333d7-OWEwY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Multinational Financial Management Alan Shapiro 7th Edition J'Wiley

Description:

1. Multinational Financial Management. Alan Shapiro. 7th Edition. J.Wiley & Sons. Power Points by ... I. CORPORATE SOURCES AND USES OF FUNDS ... – PowerPoint PPT presentation

Number of Views:1055
Avg rating:3.0/5.0
Slides: 24
Provided by: joseph70
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Multinational Financial Management Alan Shapiro 7th Edition J'Wiley


1
Multinational Financial Management Alan
Shapiro7th Edition J.Wiley Sons
  • Power Points by
  • Joseph F. Greco, Ph.D.
  • California State University, Fullerton

2
CHAPTER 12
  • INTERNATIONAL FINANCING AND NATIONAL CAPITAL
    MARKETS

3
INTERNATIONAL FINANCING AND NATIONAL CAPITAL
MARKETS
  • CHAPTER OVERVIEW
  • I. CORPORATE SOURCES AND USES OF FUNDS
  • II. NATIONAL CAPITAL MARKETS AS INTERNATIONAL
    FINANCIAL CENTERS
  • III. DEVELOPMENT BANKS
  • IV. PROJECT FINANCE

4
I. CORPORATE SOURCES AND USES OF FUNDS
  • I. CORPORATE SOURCES OF FUNDS
  • A. 3 General Sources of Funds
  • 1. Internally-generated cash
  • 2. Short-term external funds
  • 3. Long-term external funds
  • B. Forms of Securities
  • 1. Equity
  • 2. Debt the most preferred form

5
CORPORATE SOURCES AND USES OF FUNDS
  • C. Debt Instruments Used
  • 1. Commercial Bank Loans
  • 2. Bonds
  • a. Publicly issued
  • b. Privately issued

6
CORPORATE SOURCES AND USES OF FUNDS
  • D. Financial Markets v. Financial
    Intermediaries
  • 1. Securitization
  • a. Definition
  • replacing bank loans with
  • securities issued in public
  • markets.

7
CORPORATE SOURCES AND USES OF FUNDS
  • b. Reflects reduction in access costs
  • due to
  • 1.) Technological improvements
  • 2.) Globalization

8
CORPORATE SOURCES AND USES OF FUNDS
  • E . Corporate Governance
  • differences exist and fall into two general
    categories
  • 1. Anglo-Saxon (AS) Model
  • 2. Continental European and Japanese (CEJ)
    Model
  • - example keiretsus

9
CORPORATE SOURCES AND USES OF FUNDS
  • F. Globalization of Financial Markets
  • -has led to
  • 1. Global center competition
  • 2. Regulatory arbitrage

10
II. NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • II. NATIONAL CAPITAL MARKET AS
  • INTERNATIONAL CENTERS
  • A. Principal Functions of Financial Centers
  • -between savers and borrowers
  • 1. To transfer purchasing power
  • 2. To allocate funds

11
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • B. International Financial Market
  • 1. Development of most important
  • a. London
  • b. New York
  • c. Tokyo

12
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • 2. Other Centers (entrepots)
  • For intermediaries such as
  • a. Singapore
  • b. Hong Kong
  • c. the Bahamas
  • to transfer for nonresident suppliers and users
    of funds.

13
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • 3. Prerequisites to be a financial center
  • a. political stability
  • b. minimal government interventions
  • c. legal infrastructure
  • d. financial infrastructure

14
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • C. Foreign Access to Domestic Markets
  • 1. The Foreign Bond Market
  • a. Extension of domestic market
  • b. Issues floated by foreign cos. or
    governments
  • c. Examples
  • yankee bonds, samurai bonds

15
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • c. Three Major Types of Foreign
  • Bonds
  • 1.) Fixed rate
  • 2.) Floating rate
  • 3.) Equity related

16
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • 2. The Foreign Bank Market
  • a. Extension of domestic markets
  • b. Important funding source
  • Japanese banks for U.S. firms

17
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • 3. The Foreign Equity Market
  • a. Cross listing internationally can
  • 1.) diversify risk
  • 2.) increase potential demand
  • 3.) build base of global owners.

18
NATIONAL CAPITAL MARKETS AS INTERNATIONAL
CENTERS
  • D. Downside of Global Financial Markets
  • -abrupt shifts in capital flows

19
DEVELOPMENT BANKS
  • III. DEVELOPMENT BANKS
  • A. General Purpose
  • founded by governments to help finance very
    large infrastructure projects.

20
DEVELOPMENT BANKS
  • B. Types of Development Banks
  • 1. World Bank Group includes
  • a. International Bank for Reconstructio
    n and Development
  • b. International Development
    Association
  • c. International Finance Corporation

21
DEVELOPMENT BANKS
  • B. Types of Development Banks (cont)
  • 2. Regional Development Banks
  • finance industry, agricultural, and
  • infrastructure projects
  • 3. National Development Banks
  • concentrate on a particular industry or
    region.

22
IV. PROJECT FINANCE
  • PROJECT FINANCE
  • frequently used mechanism to finance
    large-scale, long-term capital investments.

23
PROJECT FINANCE
  • Key Attributes of Project Financing
  • 1. Focus on economically separable projects
  • 2. Lenders have recourse only to assets and
    cash flows of the project
  • 3. Underlying assets are large and illiquid
  • 4. Projects have a finite life.
About PowerShow.com