Chapter2InternationalFlowofFunds(国际资金流动).ppt

1. explain how expectations of a strong dollar can affect the tendency of U.S. investors to invest abroad 2. explain how low U.S. interest rates can affect the tendency of U.S. –based MNCs to invest abroad 广东工业大学管理学院 广东工业大学管理学院 International Corporate Finance International Flow of Funds 2 Chapter 学习目标 To explain the key components of the balance of payments (国际收支平衡表）; To explain how the international flow of funds is influenced by economic factors and other factors. 1. Balance of Payments Definition: Summary of transactions between domestic and foreign residents for a specific country over a specified period of time. 1. Balance of Payments Components of the Balance of Payments Statement: a. 经常项目（Current Account）: summary of flow of funds due to purchases of goods or services or the provision of income on financial assets. b. 资本项目（Capital Account）: summary of flow of funds resulting from the sale of assets between one specified country and all other countries over a specified period of time. Tips: 如果引起资金流出本国，比如说商品或者服务的进口以及向外国居民支付工资，则计入借方；反之计入贷方 Out---debit（借） In---credit（贷） Balance（余额）=credit-debit 1.1 Current Account 1.Payments for merchandise and services Merchandise exports and imports represent tangible products that are transported between countries. Service exports and imports represent tourism and other services. The difference between total exports and imports is referred to as the balance of trade. 2.Factor income payments Represents income (interest and dividend payments) received by investors on foreign investments in financial assets (securities). 3.Transfer payments Examples of Current Account Transactions Summary of Current Account in the year 2010 (billions) 1.2 Capital and Financial Accounts 1.Direct foreign investment Investments in fixed assets in foreign countries 2.Portfolio investment Transactions involving long term financial assets (such as stocks and bonds) between countries