Multinational Financial Management
● Managing the MNC
● Why Firms Pursue International Business
● How Firms Engage in International
● Business Valuation Model for an MNC
International Flow of Funds
● Balance of Payments
● International Trade Flows
● International Trade Issues
● Factors Affecting International Trade Flows
International Flow of Funds
● Correcting a Balance-of-Trade Deficit
● International Capital Flows
● Agencies That Facilitate International Flows
● How International Trade affects an MNC’s Value
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International Financial Market
● Foreign Exchange Market
● International Money Market
● International Credit Market
● International Bond Market International Stock Markets
● How Financial Markets Facilitate MNC Functions.
Exchange Rate Determination
● Measuring Exchange Rate Movements
● Factors That Influence Exchange Rates
● Speculating on Anticipated Exchange Rates
Currency Derivatives
● Forward Market
● Currency Futures Market Speculation with Currency Futures
● Currency Options Market
● Speculation with Currency Options Market
Government Influence on Exchange rate & International Arbitrage and Interest Rate Parity
● Exchange Rate Systems
● Government Intervention
● Intervention as a Policy Tool
Relationships among Inflation, Interest Rates and Exchange Rates
● Purchasing Power Parity (PPP)
● International Fisher Effect (IFE)
● Comparison of the IRP, PPP, and IFE Theories
Direct Foreign Investment
· Motives for Direct Foreign Investment
· Benefits of International Diversification.
Multinational Capital Budgeting
● Subsidiary versus Parent Perspective
● Factors to Consider in Multinational Capital Budgeting
● Input for Multinational Capital Budgeting
Country Risk Analysis
● Political Risk Factors
● Financial Risk Factors
● Types of Country Risk Assessment Techniques to Assess Country Risk
● Incorporating Country Risk in Capital Budgeting
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Multinational Cost of Capital
● Cost of Capital for MNCs
● Costs of Capital across Countries
● Use of Cost of Capital for Assessing Foreign Projects
● The MNC’s Capital Structure Decision.
Financing International Trade
● Payment Methods for International Trade
● Trade Finance Methods
● Agencies That Motivate International Trade