international financial management basic

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introduction of IFM evolution of international finacial management

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  • 1.1Introduction

    Globalization: World economy increasingly globalizedIncreasing connectivity and integration of countries and corporationsMultinational corporations (MNCs) dominating the landscape

  • 1.2Globalization and the Growth of International Trade and Capital Flows

    Globalization: OverviewThe Growth of International TradeTrade LiberalizationInternational Efforts to Promote Free TradeThe Growth in Trade MNCs Are Affecting Free TradeThe Globalization of Financial MarketsTrends in Financial OpennessThe New Financial Landscape

  • 1.2Globalization and the Growth of International Trade and Capital Flows

    The Growth of International TradeTrade LiberalizationComparative AdvantageEuropean Economic Community

  • Exhibit 1.1 Trade and Financial Openness

  • Exhibit 1.2Trade Liberalization Dates by Country

  • 1.2Globalization and the Growth of International Trade and Capital FlowsThe Growth of International TradeInternational Efforts to Promote Free TradeGATTWTOEUNAFTAASEANRecent Developmentsoutsourcing

  • 1.2Globalization and the Growth of International Trade and Capital Flows

    The Growth of International TradeThe Growth in Trade

    MNCs Are Affecting Free Trade

  • Exhibit 1.3 Panel AThe Growth in International Trade

  • Exhibit 1.3 Panel BThe Growth in International Trade

  • Exhibit 1.3 Panel CThe Growth in International Trade

  • 1.2Globalization and the Growth of International Trade and Capital Flows

    The Globalization of Financial MarketTrends in Financial OpennessThe New Financial LandscapeDerivative securitySecuritization

  • 1.3 Multinational CorporationsMultinational Corporations: Overview

    Definition of an MNC

    How MNCs Enter Foreign Markets

    The Goals of an MNC

    Corporate Governance Around the World

  • Exhibit 1.4Worlds Top Nonfinancial Transnational Corporations by Foreign Assets

  • 1.3 Multinational Corporations

    Definition of an MNC:A firm that does business in two or more foreign countries

    How MNCs Enter Foreign MarketsRoyaltiesLicensingFranchisingJoint venturesForeign Direct Investment (FDI)

  • 1.3 Multinational CorporationsThe Goals of an MNCInvestment Time HorizonStakeholder AlternativeAgency Theory and Corporate Governance

  • 1.3 Multinational CorporationsCorporate Governance Around the WorldCorporate governance differences across countries affects a firms valuationMay lead to cross-listing of stocks

  • Exhibit 1.5Methods of Overcoming Agency Problems Due to the Separation of Ownership and Control

  • Exhibit 1.6 Panel AForeign Direct Investment

  • Exhibit 1.6 Panel BForeign Direct Investment

  • Exhibit 1.7Cross-Border Mergers and Acquisitions by Buyer and Seller, 1990-2004 (in the millions of dollars)

  • 1.4Other Important International Players

    International PlayersInternational banksMultilateral Development BanksWTOOECDInternational institutionsIMFWorld Bank

  • 1.5 Globalization and the Multinational Firm: Benefactor or Menace?

    Two Sides to the Globalization Argument:

    Pro: Benefactors

    Con: Anti-globalists