LECTURE MULTINATIONAL FINANCIAL MANAGEMENT - TOPIC 6: PURCHASING POWER PARITY

Chapter 26 provides knowledge of multinational financial management. This topic will describe: Factors that make multinational financial management different, exchange rates and trading, international financial markets, specific features of multinational financial management.

Lecture 15 - Purchasing and Supply Chain. The contents of this chapter include all of the following: Purchasing overview, purchasing cycle, purchasing function, make or buy decision, purchasing techniques, JIT purchasing, supply chain management, outsourcing, ethics in supply chain.

This chapter explains short term liability management of MNCs, a part of multinational management that is often neglected in other textbooks. From this chapter, students should learn that correct financing decisions can reduce the firm’s costs. While foreign financing costs cannot usually be perfect[r]

After completing this chapter, students will be able to: To describe the methods of payment for international trade; to explain common trade finance methods; and to describe the major agencies that facilitate international trade with export insurance and/or loan programs.

After completing this chapter, students will be able to: To describe the methods of payment for international trade; to explain common trade finance methods; and to describe the major agencies that facilitate international trade with export insurance and/or loan programs.

After completing this chapter, students will be able to: To explain the difference in analyzing cash flows from a subsidiary perspective versus a parent perspective; to explain the various techniques used to optimize cash flows; to explain common complications in optimizing cash flows; and to explai[r]

This chapter emphasizes the decisions involved in the manage¬ment of cash by an MNC. The additional opportunities and risks of cash management for an MNC versus a domestic firm should be stressed. There are actually three key components of the chapter. The first is distinguishing between subsidiary[r]

In this section firms are asked to identify the objective they try to achieve by using derivatives and they can make a multiple choice among minimizing the volatility in accounting earnings, minimizing the volatility in cash flows etc.

In this chapter, the following content will be discussed: To explain the key findings and important implications with respect to the usage of derivatives in greece, the results of the survey indicate that the use of derivatives in risk management is not wide spread among domestic firms, it is observ[r]

After completing this chapter, students will be able to: A statistical perspective, market structure, trading practices, and costs, international equity market benchmarks, world equity market benchmark shares, trading in international equities, factors affecting international equity returns,...

This lecture introduces the multinational corporation as having similar goals to the purely domestic corporation, but a wider variety of opportunities. With additional opportunities come potential increased returns and other forms of risk to consider. The potential benefits and risks are introduced.[r]

Lecture - Currency derivatives. After completing this chapter, students will be able to: To explain how forward contracts are used for hedging based on anticipated exchange rate movements; and to explain how currency futures contracts and currency options contracts are used for hedging or speculatio[r]

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QUI LUẬT MỘT GIÁ p NGANG BẰNG SỨC MUA PPP THE LAW OF ONE PRICE AND PURCHASING POWER PARITY: tỉ giá hối đoái thực phải = 1 nếu hàng hóa được do lường cùng đơn vị do tình trạng kinh doanh [r]

Lecture 22 - International corporate finance. After studying this chapter you will be able to: How exchange rates are quoted, what they mean, and the difference between spot and forward exchange rates; purchasing power parity, interest rate parity, unbiased forward rates, uncovered interest rate par[r]

Ngang giá sức mua giữa hai đồng tiền đơn thuần chỉ là sự so sánh mức giá hàng hóa tính bằng nội tệ và ngoại tệ ở hai nước mà không đề cập đến chi phí vận chuyển quốc tế, thuế quan… Một c[r]

Thus, both because some goods are not tradable and because some tradable goods are not perfect substitutes with their foreign counterparts, purchasing- power parity is not a perfect theory of exchange-rate determination. For these rea- sons, real exchange rates fluc[r]

After completing this chapter, students will be able to: To explain why MNCs consider foreign financing; to explain how MNCs determine whether to use foreign financing; and to illustrate the possible benefits of financing with a portfolio of currencies.

Since MNCs commonly invest in long-term projects, they rely heavily on long-term financing. Once the capital structure decision has been made, the MNC must consider the possible sources of equity or debt, and the costs and risks associated with each source. Many MNCs obtain equity funding in their h[r]

After completing this chapter, students will be able to: To explain why MNCs consider long-term financing in foreign currencies; to explain how the feasibility of long-term financing in foreign currencies can be assessed; and to explain how the assessment of long-term financing in foreign currencies[r]