Multinational Financial Management（跨国公司财务管理） 全套课件.ppt

Multinational Financial Management Alan Shapiro8th Edition J.Wiley Sons Power Points by Joseph F. Greco, Ph.D. California State University, Fullerton CHAPTER 1 Introduction PART 1 THE RISE OF THE MULTINATIONAL CORPORATION I. The MNC: A Definition a company with production and distribution facilities in more than one country. with a parent company located in the home country at least five or six foreign subsidiaries THE RISE OF THE MULTINATIONAL CORPORATION A. Forces Changing Global Markets Massive deregulation Collapse of communism Privatizations of state-owned industries Revolution in information technology Wave of MA Emergence of free market policies in Third World Nations Countless nations accepting the standards of free market capitalism THE RISE OF THE MULTINATIONAL CORPORATION The Rise of China as a Global Competitor the most dramatic change in the international economy over the last decade the number one destination for foreign direct investment (FDI) Note: FDI is the acquisition abroad of companies, property, or physical assets THE RISE OF THE MULTINATIONAL CORPORATION B. Who is the Prime Transmitter of Competitive Forces in the Global Economy: The MNC emphasizes group performance such as Global coordinated allocation of resources Market – entry strategy Ownership of foreign operations Production, marketing and financial activities THE RISE OF THE MULTINATIONAL CORPORATION C. The MNC’s Evolution Reasons to Go Global: 1. More raw materials 2. New markets 3. Minimize costs of production THE RISE OF THE MULTINATIONAL CORPORATION RAW MATERIAL SEEKERS exploit markets in other countries historically first to appear modern-day counterparts British Petroleum Exxon THE RISE OF THE MULTINATIONAL CORPORATION MARKET SEEKERS Produce and sell in foreign markets Have heavy foreign direct investors Represented today by firms such as: IBM MacDonald’s Nestle Levi Strauss THE RISE OF THE MULTINATIONAL CORPORATION C