roy

Global Capital Markets: Entering a New Era

Global Capital Markets: Entering a New Era The current financial crisis and worldwide recession have abruptly halted a nearly three-decade-long expansion of global capital markets. From 1980 through 2007, the world’s financial assets—including equities, private and public debt, and bank deposits—nearly quadrupled in size relative to global GDP. Global capital flows similarly surged. This growth […]

Global Capital Markets: Entering a New Era Read More »

Current Multinational Challenges and the Global Economy

Current Multinational Challenges and the Global Economy I define globalization as producing where it is most cost-effective, selling where it is most profitable, and sourcing capital where it is cheapest, without worrying about national boundaries. —Narayana Murthy, President and CEO, Infosys. The subject of this book is the financial management of multinational enterprises (MNEs). MNEs

Current Multinational Challenges and the Global Economy Read More »

Do these foreign currency borrowings offset any obvious economic exposures they have in those currencies?

Review the annual reports of three MNCs found at www.reportgallery.com. 1. Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure? 2. Which currencies have these companies borrowed in besides the U.S. dollar? Do these foreign currency borrowings offset any obvious economic exposures they have in those

Do these foreign currency borrowings offset any obvious economic exposures they have in those currencies? Read More »

Which currencies have these companies borrowed in besides the U.S. dollar?

Review the annual reports of three MNCs found at www.reportgallery.com. 1. Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure? 2. Which currencies have these companies borrowed in besides the U.S. dollar? Do these foreign currency borrowings offset any obvious economic exposures they have in those

Which currencies have these companies borrowed in besides the U.S. dollar? Read More »

Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure?

Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure? Review the annual reports of three MNCs found at www.reportgallery.com. 1. Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure? 2. Which currencies have these companies borrowed in

Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure? Read More »

What are the likely effects of the change in the yuan’s real value on the dollar profits of a textile manufacturer that exports most of its output to the United States?

Over the past year, China has experienced an inflation rate of about 22%, in contrast to U.S. inflation of about 3%. At the same time, the exchange rate has gone from Y8.7/U.S.$1 to Y8.3/U.S.$1. a. What has happened to the real value of the yuan over the past year? Has it gone up or down?

What are the likely effects of the change in the yuan’s real value on the dollar profits of a textile manufacturer that exports most of its output to the United States? Read More »