3. Companies (and individuals) can raise funds, invest money, buy inputs, produce goods and sell products and services overseas.
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5. Foreigners in return purchase American-made aircrafts, Software, Movies, Jeans, and other products. Continued liberalization of International trade is certain to further internationalize consumption patterns around the world. Effect on Consumption
6. Like consumption, production of goods and services has also become highly globalized. MNCs efforts to source inputs and locate production anywhere in the world where costs are lower and profits are higher. E.g. IBM Effect on Production
7. Financial Markets have also become Highly Integrated. e.g. Diversified Investment Portfolios. E.g. Japanese investors are investing heavily in U.S. and other Foreign financial Markets in efforts to recycle their enormous trade surpluses. Other examples-IBM, Sony etc. Financial Markets
8. Dr. Reddy (A) GAIL (G) GRASIM Inds (G) ICICI Bank (A) Infosys Tech (A) ITC (G) L& T (G) M&M (G) SBI (G) Tata Comm (A) Indian Companies Issuing ADR’s & GDR’s
16. E.g., raise funds in global markets, gains from economies of scale…What is special about international finance?
17. So Finally we can say that….. Rapidly integrating markets have stretched firms across borders and increased the importance of foreign operations to firms around the world.
18. What do finance practitioners need to know to operate in a global setting? Now the Question arises….
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20. Rather than simply considering how to make aggregate capital structure and dividend decisions, CFOs must also wrestle with decisions regarding the capitalization and repatriation policies of their many subsidiaries. Introduction
21. Capital budgeting decisions must not only reflect divisional differences but the complications introduced by currency, tax and country risks. Valuation decisions must now take into account how to value assets that are exposed to different country risks and currencies. Incentive compensations systems must consider how to measure and reward managers who are operating in very different economic and financial settings. Introduction
24. How should subsidiaries be financed? How should repatriation policies be designed? How should investment opportunities in different countries be analyzed How should financial information be communicated inside the firm? When should ownership be shared? With whom Introduction
27. An Overview….. Foreign Exchange & Derivatives Markets Sourcing Capital in Global Markets International Financial Management Multinational WCM Managing FOREX Exposure Foreign Investment Decisions
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