Bài giảng Tài chính quốc tế Chương 1: GV. Ngô Thị Ngọc Huyền (Chi tiết)

CHAPTER ONE

MNCs & MULTINATIONAL FINANCIAL MANAGEMENT

INTERNATIONAL FINANCIAL MANAGEMENT

NGO THI NGOC HUYEN

TẠI SAO HỌC TÀI CHÍNH QUỐC TẾ?

NỘI DUNG CHƯƠNG 1

• Ra quyết định đầu tư và tài trợ (Making investment and

financing)

• Quyết định trên thị trường toàn cầu (decisions in a global

market)

• Kiểm soát dòng tiền ứng với từng quyết định (Cash flows

associated with these decisions)

• Tại sao học tài chính quốc tế? • Mục tiêu của MNCs • Sự xuất hiện và tăng trưởng của MNCs • Quốc tế hóa của kinh doanh và tài chính. • Quản trị tài chính quốc tế: Lý thuyết và thực hành

• Rủi ro tương ứng (Risks associated with these cash flows) • Thị trường tài chính quốc tế (The international financial

markets)

1

THỊ TRƯỜNG TÀI CHÍNH QUỐC TẾ

LÝ THUYẾT THƯƠNG MẠI QUỐC TẾ

• Nghiên cứu về (Involves the study of):

 Imperfect Markets #1

– Chính sách tỷ giá - Exchange rate regimes

 Comparative Advantage #

– Định chế tài chính - Financial institutions

– Phương tiện tài chính - Financial instruments

 Product Cycle #2

– Mô hình tài chính quốc tế - International finance models

 “A Flat World” #3

– Những vấn đề tài chính quốc tế - Current international finance issues.

• Những nghiên cứu để hiểu thị trường, các công cụ và rủi ro cũng như lợi ích tác động đến quyết định đầu tư và tài trợ.

MULTINATIONAL CORPORATION

• Mục tiêu Goal of MNCs is maximizing shareholder’s wealth – The SWM model – Shareholder Wealth Maximization (US company)

• Khái niệm

• Nguồn gốc của sự phát triển

• Quá trình phát triển

– The CWM model – Corporate Wealth Maximization (European & Japanese company): requires a single goal of value maximization with a well-defined score card

2

OPERATING & FINANCING CASH FLOWS

TYPICAL FOREIGN EXPANSION SEQUENCE

Financial Cash Flows

Licensing

Dividend paid to parent Parent invested equity capital Interest on intrafirm lending Intrafirm principal payments

Exporting

Sales

Distribution

Production

Service

Parent

Subsidiary

subsidiary

system

oversea

facilities

Payment for goods & services Rent and lease payments Royalties and license fees Management fees & distributed overhead

Operational Cash Flows

Chapter 1

Dividends Fees, Royalties, corporate overhead for services

HEÄ THOÁNG TAØI CHÍNH CUÛA MNCs

• Heä thoáng taøi chính cuûa MNCs: • Chuyeån giaù haøng hoùa vaø dòch vuï trong noäi boä coâng ty

Interest and repayment of credit/loan Equity investment Loans Credit on goods and services

 Vay vaø cho vay giöõa caùc coâng ty con

Capital goods

 Thanh toaùn vaø chi traû coå töùc

 Taêng hoaëc giaûm thôøi gian thanh toaùn giöõa caùc coâng ty con

 Thanh toaùn caùc khoaûn tieàn baûn quyeàn coâng ngheä

 Nhöõng thöông vuï traû chaäm laøm gia taêng nhu caàu taøi chính

Technology Management Intermediate goods Finished goods Technology/market intelligence

s w o l f

i

l a i c n a n F

Chapter 1

3

HEÄ THOÁNG TAØI CHÍNH CUÛA MNCs

NHÖÕNG THUAÄN LÔÏI VEÀ NGHIEÄP VUÏ TAØI CHÍNH CUÛA MNCS:

Nhöõng ruûi ro veà nghieäp vuï taøi chính cuûa MNCs:

• Nhôø khaû naêng chu chuyeån voán vaø lao ñoäng khaép toaøn caàu cho pheùp

• Ruûi ro veà ngoaïi hoái vaø laïm phaùt

MNCs môû roäng taàm hoaït ñoäng cuõng nhö nghieäp vuï taøi chính

• Söï khaùc bieät veà thueá suaát quoác teá

• Nhôø tieáp caän moïi thò tröôøng voán neân MNCs coù theå giaûm toång chi

• Qui ñònh kieåm soaùt tieàn teä

phí, chòu thueá thaáp, vaø ña daïng hoùa nguoàn voán

• Caùc ruûi ro chính trò nhö ban haønh luaät tröng thu taøi saûn

• Taêng maïnh khaû naêng ñoái phoù vaø thöông löôïng hôïp ñoàng ñaàu tö vôùi

chính phuû nöôùc sôû taïi

• MNCs coù theå tieáp caän thoâng tin kyõ thuaät môùi ôû nöôùc ngoaøi

Chapter 1

INTERNATIONAL OPPORTUNITIES

HEÄ THOÁNG TAØI CHÍNH CUÛA MNCs

THÒ TRÖÔØNG TAØI CHÍNH TOAØN CAÀU VAØ QUAÛN TRÒ TAØI CHÍNH QT

Cost-benefit Evaluation for Purely Domestic Firms versus MNCs

• Thò tröôøng taøi chính vôùi phaùt trieån cuûa maùy ñieän toaùn vaø vieãn

Investment Opportunities

thoâng ñaõ taïo neân hieäu quaû cuûa thò tröôøng

Purely Domestic Firm

MNC

• Thò tröôøng taøi chính laø hình thöùc theå hieän cuûa chính saùch kinh teá.

Marginal Return on Projects

MNC

Thò tröôøng taøi chính ñöa ra nhöõng phaùn xeùt khaùch quan.

• Chæ coù nhöõng chính saùch taøi chính - tieàn teä ñuùng ñaén môùi taïo neân

Purely Domestic Firm

söï oån ñònh cuûa thò tröôøng tieàn teä.

Marginal Cost of Capital

• Nhöõng saép xeáp treân thò tröôøng seõ khoâng theå cöùu vaõn noåi maø coøn

Financing Opportunities

Appropriate Size for Purely Domestic Firm

Appropriate Size for MNC

laøm traàm troïng hôn cho ñoàng tieàn ñang tuoät doác.

X

Y

Chapter 1

Asset Level of Firm 16

4

VALUATION MODEL FOR AN MNC

DOMESTIC VALUATION MODEL FOR COMPANY

• Domestic Model

K = 10%

Cash Flow

Year 1

Year 2

$10,000

Value = 10,000/ (1+10%)1 + 10,000/ (1+10%)2

E (CF$,t ) = expected cash flows to be received at

= 9091 + 6265

the end of period t

= $17,356

n

= the number of periods into the future

in which cash flows are received

k

= the required rate of return by

investors

VALUATION MODEL FOR AN MNC

VALUATION MODEL FOR MNCs

• Valuing International Cash Flows

R=10%

Year 1

Year 2

Cash Flow

Exchange rate Cash Flow

Exchange rate

Dollar

100,000

Mexico Peso

100,000

$0.10

100,000

$0.08

British Pound

20,000

$2.00

20,000

$2.50

CF(Yr 1): 100,000 + 100,000*0.10 + 20,000*2.00 = $150,000

CF(Yr 2): 100,000 + 100,000*0.08 + 20,000*2.50 = $158,000

E (CFj,t ) = expected cash flows denominated in currency j to be received by the U.S. parent at the end of period t

Value = 150,000 / (1+10%)1 + 158,000 / (1+10%)2 = $266,943

E (ERj,t ) = expected exchange rate at which currency j can

be converted to dollars at the end of period t = the weighted average cost of capital of the U.S.

k

parent company

5

IN-CLASS EXERCISE # 1

VALUATION MODEL FOR AN MNC

TOTAL OUTPUT PER WORKER

Impact of New International Opportunities on an MNC’s Value

FOOD (F) CLOTHING (C) USA 400 10

Exposure to Foreign Economies

Exchange Rate Risk

GERMANY 1000 20 OPPORTUNITY COST COST OF F (in term of C) COST OF C (in term of F) USA GERMANY USA GERMANY 1C=35F U/A U/A 1F=0.04C U/A U/A 1F=0.01C U/A U/A

Political Risk

1C=52F U/A U/A

SOLUTION IN-CLASS EXERCISE # 3

IN-CLASS EXERCISE # 2

TOTAL OUTPUT PER WORKER

TEA COFFEE

COMPUTERS

CALCULATORS

BRAZIL 300 lbs 9000 lbs

USA

10 2000

CHINA 200 lbs 5000 lbs

UK

12 3000

OPPORTUNITY COST

Cost of TEA (in term of Cof)

Cost of Cof. (in term of tea)

Cost of CAL (in term of Com.) Cost of Com (in term of Cal.) BRAZIL CHINA

USA

BRAZIL CHINA

UK

US

UK

1 pound of tea = 32 lb Cof. U/A U/A

1COM=180 CAL.

U/A

1 pound of cof = 0.035 lb tea U/A U/A

1 CAL=0.0038 COM

U/A

1 pound of cof = 0.065 lb tea U/A U/A

1COM=260 CAL.

U/A

1 pound of tea = 20 lb Cof. U/A U/A

1 CAL=0.0055 COM

U/A

6

ONLINE APPLICATION

MINI CASE: NIKE’S DECISION

• Visit FRED®, Fed's economic time-series database, at

http://www.stls.frb.org/fred for numerous economic and financial time series, e.g., balance of payment statistics, interest rates, foreign exchange rates.

• Visit http://www.ita.doc.gov/td/industry/otea (Office of Trade and

Economic Analysis) for an outlook of international trade conditions for each of several industries.

•

• Nike, a US based company with a globally recognized brand name, manufactures athletic shoes in such Asian developing countries as China, and Vietnam using subcontractors, and sell the products in the US and foreign market. The company has no production facilities in the US. In each of those Asian countries where Nike has production facilities, the rates of unemployment and underemployment are quite high. The wage rate is very low in those countries by US standards; the hourly wage rate in the manufacturing sector is less than one dollar in each of those countries, compared with about 18$ in the US. In addition, workers in those countries often operate in poor and unhealthy environments and their rights are not well protected. Understandably, Asian host countries are eager to attract FDI like Nike’s to develop their economies and raise the living standards of their citizens. Recently, however, Nike came under worldwide criticism for its practice of hiring workers for such a low pay – “next to nothing” on the world critics – and condoning poor working conditions in the host countries. Evaluate and discuss various ethical as well as economic ramifications of Nike’s decision to invest in those Asian countries.