国际商务PPT第十二章.ppt

International Business 9e By Charles W.L. Hill Chapter 12 The Global Capital Market Why Do We Have Capital Markets? Capital markets bring together investors and borrowers investors - corporations with surplus cash, individuals, and non-bank financial institutions borrowers - individuals, companies, and governments markets makers - the financial service companies that connect investors and borrowers, either directly (investment banks) or indirectly (commercial banks) capital market loans can be equity or debt Who Are The Main Players in Capital Markets? The Main Players in a Generic Capital Market What Makes The Global Capital Market Attractive? Today’s capital markets are highly interconnected and facilitate the free flow of money around the world Borrowers benefit from the additional supply of funds global capital markets provide lowers the cost of capital the price of borrowing money or the rate of return that borrowers pay investors What Makes The Global Capital Market Attractive? Market Liquidity and the Cost of Capital What Makes The Global Capital Market Attractive? Investors benefit from the wider range of investment opportunities diversify portfolios and lower risk But, volatile exchange rates can make what would otherwise be profitable investments, unprofitable What Makes The Global Capital Market Attractive? Risk Reduction through Portfolio Diversification How Have Global Capital Markets Changed Since 1990? Global capital markets have grown rapidly the stock of cross-border bank loans was just $3,600 billion in 1990, but $32,430 in 2010 the international bond market has grown from $3,515 billion in 1997 to $26,613 in 2010 international equity offerings were just $18 billion in 1990, but grew to $750 billion in 2009 Why Is The Global Capital Market Growing? Two factors are responsible for the growth of capital markets Advances in information technology the growth of international comm