《FIN Topic 2 Business and international trade 》.ppt

Topic 2 Business and international trade Compulsory readings Prescribed text: Eiteman et al. Chapters 1 2. Objectives When you have finished studying this topic, you should be able to explain and describe: models of corporate governance implications of the different models of governance agency theory different philosophies for the goals of the firm such as the shareholder wealth maximisation and stakeholder capitalism models. Introduction Chapter 1 of your text discusses the growth of the multinational firm (MNE) and the factors that drive such companies to first engage in importing and exporting and then subsequently to embrace multiple locations across national borders in the transition phase from international trader to multinational operator. Chapter 2 takes you deeper into the concepts of corporate governance and financial goals. You will study these concepts in more detail but without the financial emphasis in MGT382. That subject deals with strategic planning and implementation across all three classifications of firms. But for this topic the importance of firm governance structures relates to the decisions that have to be made with respect to the many financial problems associated with international business and trade that we will discuss in subsequent topics. Chapter1 Globalization and the Multinational Enterprise 1.0 Multinational enterprise (MNE) is defined as …… Multinational International Enterprise Corporation 1.1 globalization and creating value in the multinational enterprise Global business Building firm value requires 3 critical elements: (1)An open marketplace (2)high quality strategic management (3)access to capital EXHIBIT 1.1 Creating Firm Value in Global Markets (P3) GLOBAL FINANCE IN PRACTICE 1.1 National Multinational or “A-National”? (P4) Theory of CA Traditional: to specialize in most efficiently produced by