![A19 - 26
仍仂仆 仍仆 亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆勵勵
亳亶亟于 亟亳亶仆 -亳亶仆 仆 仆亟 亰 仍 仆 仍勵勵 勳 勵 勵 勵勵 唏 唏唏
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E (CFj,t ) = t 亠亳亶仆 丕-仆 仂仍亞仂亶勵
从仂仄仗舒仆亳亶 仍仆 舒于舒勵 j 于舒仍ﾑ舒舒 仍亞亟亢 弍亶勵
仄 仆亞 仆 亞舒仍唏 唏
E (ERj,t ) = t 亠亳亶仆 亟仂仍仍舒 于 勵 唏 唏 j
于舒仍ﾑ仆 仍亞亟亢 弍亶 舒仆勵
丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆勵勵
亳亶亟于 亟勵勵](https://image.slidesharecdn.com/basic19-21-170519070820/85/Basic19-21-26-320.jpg)
![A19 - 43
Impact of Short-Term Financing Decisions
on an MNCs Value
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E (ERj,t ) = expected exchange rate at
which currency j can be converted to dollars at
Expenses Incurred from
Short-Term Financing](https://image.slidesharecdn.com/basic19-21-170519070820/85/Basic19-21-43-320.jpg)
![A19 - 67
Impact of International Cash Management
on an MNCs Value
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E (CFj,t ) = expected cash flows in
currency j to be received by the U.S. parent at the
end of period t
E (ERj,t ) = expected exchange rate at
which currency j can be converted to dollars at
Returns on International
Cash Management](https://image.slidesharecdn.com/basic19-21-170519070820/85/Basic19-21-67-320.jpg)
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- 1. V 亞 仂亞亳仆仂 亞舒舒舒 仆亞 弍舒 亳亶仆唏 唏 唏 唏 亟亳亟仍舒亞舒 仍 亟仍 仆亞勵勵 唏 唏 唏 弍 亳亶 -亳亶仆勵 勳 仂亳仆 从仂仄仗舒仆亳亟 仆亞唏 唏 唏 弍 亳亶 -亳亶仆勵 勳 仂亳仆 从仂仄仗舒仆亳亟 仍仂仆 仍仆 舒亳仍亢舒舒仆 于亠从亠仍亳亶仆 于仂于舒仍ﾑ仆 亰舒 亰仍 亟 亠于仂弍舒仆从亟 丐仂仍亞仂亶 勳 丱舒亟亞舒仍舒仄亢 仆 舒舒勳 亟舒仍亟舒仆 舒于舒 仍 舒仆亞舒 仍 舒仆亞舒 丱舒亟亞舒仍舒仄亢 仆 舒舒勳 亟舒仍亟舒仆 舒于舒 仍 舒于舒 仍 舒于舒 仍 舒于舒 仍 舒于舒 仍 舒于舒 仍 舒于舒
- 2. 仍仂仆 仍仆 亟舒仍亟舒舒仆 舒仆 亢亳仍勵勵 19 仍亞勵
- 3. A19 - 3 仍亞亳亶仆 亰仂亳仍亞仂勵 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆唏 唏 舒亞亟亞 舒亶仍弍舒仍舒; 亳亶仍亞 亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆勵勵 舒亞亟亞 舒亶仍弍舒仍舒; 亅从仗仂仆 亟舒舒亞舒仍 弍仂仍仂仆 亰仍亳亶仆 仍弍 弍 亳亶 仂仍仂仆 仍仆 亟舒仍亟舒舒亞唏 唏 唏 勵 仆亞 于亳仍亟 亞 亞仂仍 舒亞亠仆仍舒亞亟亞唏 唏 唏 舒亶仍弍舒仍舒.
- 4. A19 - 4 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏 仍仂仆 仍仆 亟舒仍亟舒舒仆 礆舒 亞 亶仍亞仆亟勵 亟舒舒舒仆 舒仍 舒仍 仆 亰仍 舒仆亞舒亟舒亞 造 亳亶仍 仍亞 (从仗仂仍仂亞),勵勵 造 丱亟舒仍亟舒仆 舒于舒亞 (亳仄仗仂仍仂亞), 造 亞 弍舒 仆 仂仍仂仆 舒仆 亞亳亶仆 亳仆亳亳亟勵勵 勵勵 于仍 造 亳亶仆 礆舒 仂仍仂仍. 亳亶仍 仍亞 亟舒仍亟舒舒仆 亳从仍亳亶亞 弍 仍亟 仆勵勵 勵 舒仆 亢 仍 亰仍亳亶仆 仍弍亳亶亞勵勵 勵勵 仆亳亶仍 仍亞亳亶仆 亰仍勵勵 亞亟亞.
- 5. A19 - 5 亞舒 : 丕亟亳仍舒仆 仍弍 唏 唏 丱亟舒仍亟舒仆 舒于舒亞 亟舒仍亟舒亞亳亟 仍弍 亳亶唏 唏 仍 弍舒舒舒亞 舒仍舒亞 亶 弍舒亶.勵 勵 丐 仍弍 亳亶仆 亞舒舒舒唏 唏 : 仍舒仆 仄仆唏 唏 丱亟舒仍亟舒仆 舒于舒亞亟舒亟 弍仂仍仂仄亢仂亶 弍舒舒舒: 丐 仍弍 亳亶仆 亟舒舒舒唏 唏 亅从仗仂仍仂亞亳亶仆 亟仍: 舒亶亞 亶勵 仄仗仂仍仂亞亳亶仆 亟仍: 舒亳舒仍舒仆 弍舒舒舒亞 舒仍舒 仆 从仗仂仍仂亞仂仂 弍 仆 舒仄舒舒仆舒勵 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏
- 6. A19 - 6 亞舒 : 从从亠亟亳亳于 (L/C) 仆亳亶亞 于亳亶仆 弍舒亳仄 弍亳亞亳亶亞 仆亟仍仆勳勵 勵 亳仄仗仂仍仂亞亳亶仆 仆亳亶仆 仄仆 从仗仂仍仂亞亳亟唏 唏唏 仍弍 仍 亳亶亞 舒仄仍舒亢 弍舒仆从 亞舒亞舒亟舒亞 弍舒亶仆舒.唏 唏 唏 唏 丐 仍弍 亳亶仆 亞舒舒舒唏 唏 : 仍舒仆 亠亟勵 丱亟舒仍亟舒仆 舒于舒亞亟舒亟 弍仂仍仂仄亢仂亶 弍舒舒舒: 丐 仍弍 亳亶仆唏 唏 亟舒舒舒 亅从仗仂仍仂亞亳亶仆 亟仍: 舒 弍舒亞舒 弍ﾑ 弍舒亶亞 亶勵 仄仗仂仍仂亞亳亶仆 亟仍: 舒亳仄 弍亳亳亞 亰舒舒仆 亟舒亞 弍舒舒舒亞 舒仍舒 仆 从仗仂仍仂亞仂仂 舒仄舒舒亟舒亞. 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏
- 7. A19 - 7 亞舒 : 舒 (亳亢亳亶仆 仆 舒舒)勵 舒仆 仆 仆亳亶 亟 仆亞 亟舒仍亟舒仆 舒于舒亞勵勵 勵 仍 亳亶亞 亰舒舒舒仆 从仗仂仍仂亞亳亶仆 亞舒亞舒舒仆唏 唏 弍仂仍亰仂仍亞 亶 舒仄仍舒仍 ﾐ.勵 舒仆从亟 舒仍 舒仍亳仆 亞亞 仍 亟 亳于仍仆唏 唏 于仍仍亳亶仆 弍舒亳仄 弍亳亞亳亶亞 弍仂仍仂于仍舒 弍仂仍仂仆 仍弍 亞仍仍舒 舒仍唏 唏 亟 亰仍舒亞亳亟 亳亞 舒亢亳仍仍舒亟舒亞. 舒仆从仆 仆 仂仄仂仆 于亟 舒亢亳仍 亞 亶仍亞亞勵 弍舒亳仄 弍亳亞亳亶仆 亞仍仍舒仍 亞亟亞. 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏
- 8. A19 - 8 丐 仍弍 亳亶仆 亞舒舒舒唏 唏 : 舒亞 亞 亟唏 唏 唏 丱亟舒仍亟舒仆 舒于舒亞亟舒亟 弍仂仍仂仄亢仂亶 弍舒舒舒: 丐 仍弍 亳亶仆唏 唏 亟舒舒舒 亅从仗仂仍仂亞亳亶仆 亟仍: 丐 仍弍 亳亶亞亟亞 亶 弍舒舒舒仆唏 唏 勵 弍仂仍仍舒仍 仄仗仂仍仂亞亳亶仆 亟仍: 舒亳仄 弍亳亳亞 亰舒舒仆舒舒 弍舒舒舒亞 舒仍舒 仆 从仗仂仍仂亞仂仂 舒仄舒舒仆舒 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏 亞舒 : 舒 (亳亢亳亶仆 仆 舒舒)勵 Sight drafts ( 仍弍 亳亶仆 亞 弍舒亳仄 弍亳亳亞)唏 唏 : 舒舒舒亞 舒仍舒仆 亠亟 仍弍 亳亶 亟舒仍亟舒仆勵 唏 唏 舒于舒亞 亟舒亞 亳仍亞亟亞.
- 9. A19 - 9 丐 仍弍 亳亶仆 亞舒舒舒唏 唏 : 舒仆 亞舒舒舒 亟舒 仍勵 丱亟舒仍亟舒仆 舒于舒亞亟舒亟 弍仂仍仂仄亢仂亶 弍舒舒舒: 丐 仍弍 亳亶仆唏 唏 仄仆唏 唏 亅从仗仂仍仂亞亳亶仆 亟仍: 丱亟舒仍亟舒仆 舒于舒亞 仍弍 唏 唏 亳亶 舒仄舒舒仆舒 仄仗仂仍仂亞亳亶仆 亟仍: 舒亳仄 弍亳亳亞 亰舒舒仆舒舒 从仗仂仍仂亞 弍舒舒舒 舒仍舒舒舒 舒仄舒舒仆舒 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏 亞舒 : 舒 (亳亢亳亶仆 仆 舒舒)勵 丱亞舒舒舒仆 亟舒 (于亠从亠仍亳亶仆 亞 弍舒亳仄 弍亳亳亞): 舒舒舒亞 舒仍舒仆 亠亟 亟舒仍亟舒仆 舒于舒亞勵 亳仍亢 仍仆 亟舒亞 仍仆 舒于亟舒亞 (亞舒仆 亞 亰亟舒亞).勵勵 勵 勵
- 10. A19 - 10 亞舒 : 仍舒仆 弍ﾑ 亳 仍仆 弍舒舒舒仆 亞勵勵 仄仗仂仍仂亞 舒仍舒仆 弍舒舒舒 从仗仂仍仂亞亳亶仆 仆 亟 弍舒亶仆舒. 丐 仍弍 亳亶仆 亞舒舒舒唏 唏 : 舒于亟舒亞 亞亟亟 亟舒仍亟舒 亠亟勵 丱亟舒仍亟舒仆 舒于舒亞亟舒亟 弍仂仍仂仄亢仂亶 弍舒舒舒: 丐 仍弍 亳亶仆唏 唏 仄仆唏 唏 亅从仗仂仍仂亞亳亶仆 亟仍: 亅从仗仂仍仂亞亳亟 仍弍 唏 唏 亳亶亳亶仆 仄仆 亳仄仗仂仍仂亞 弍舒舒舒亞 亟舒仍亟舒亢 弍仂仍仆仂唏 唏 仄仗仂仍仂亞亳亶仆 亟仍: 舒亶亞 亶勵 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏
- 11. A19 - 11 亞舒 : 仍亶 亟舒仆 丱亟舒仍亟舒仆 舒于舒亞 仂亳仂仍仂仆 仆 仍亳亶仆 亟舒亞唏 仍弍 亞亶于仍仆舒 亞亢 亰亢 从仗仂仍仂亞 弍舒舒舒亞唏 唏 勵 舒仍亟舒亞. 丐 仍弍 亳亶仆 亞舒舒舒唏 唏 : 丐仂亳仂仍仂仆 弍舒亶亟仍舒舒 丱亟舒仍亟舒仆 舒于舒亞亟舒亟 弍仂仍仂仄亢仂亶 弍舒舒舒: 丐 仍弍 亳亶仆唏 唏 仄仆唏 唏 亅从仗仂仍仂亞亳亶仆 亟仍: 丐仂亳仂仍仂仆 亟舒亞 仍弍 亳亶亞 亳亶 亟舒仍亟舒仆 舒于舒亞舒舒 弍 仆唏 唏 勵 舒仄舒舒仆舒. 仄仗仂仍仂亞亳亶仆 亟仍: 舒亶亞 亶勵 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍弍 亳亶仆 舒亞亟唏 唏
- 12. A19 - 12 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵 舒仆仆 舒于仍舒亞舒舒 舒仆 亢亳仍勵勵 造 亊舒舒仍舒亶 舒仆 亢亳仍 亞亶 从仗仂仍仂亞勵勵 亟舒仆仆 舒于仍舒亞仆 舒仆 亢亳仍勵勵 弍舒舒仍亞舒舒亢舒仆 弍舒仆从仆 亰仍 舒于 弍仂仍仆仂. 个舒从仂亳仆亞 (丱亳仍 亟舒仄仆舒舒仆 舒从仂亳仆亞) 造 舒仆仆 舒于仍舒亞亞 亞舒于亟舒亞 亞亟亟 亟舒仍亟舒 弍舒 (舒从仂亳仆亞), 亟舒仍亟舒仆 舒于舒亞舒舒 舒于仍舒亞舒 亞仍仍舒舒亶 仂仍弍仂仂仂亶 弍 亞勵 勵勵 舒亳仍舒亞舒 弍仂仍仂仆 亟仍亳亶亞 亟亞.勵勵
- 13. A19 - 13 从从亠亟亳亳于 (L/C) 造 仆亳亶亞 于亳亶仆 弍舒亳仄 弍亳亞亳亶亞 仆亟仍仆勳勵 勵 亳仄仗仂仍仂亞亳亶仆 仆亳亶仆 仄仆 唏 唏唏 从仗仂仍仂亞亳亟 仍弍 仍 亳亶亞 舒仄仍舒亢 弍舒仆从唏 唏 唏 唏 亞舒亞舒亟舒亞 弍舒亶仆舒. 造 仄仗仂仍仂亞 亞舒亞舒亞 弍舒仆从亳仆亟 舒从从亠亟亳亳于亳亶仆 亟 仆 亟 仂仍弍仂亞亟仂 舒舒仄亢亳亶亞 仆仄亢 仍亟 亞.勵 唏 唏 造 亳仍亢舒舒仆 于仍 亳仄仗仂/从仗仂仆 舒从从亠亟亳亳于 仆 亳于仍仆 亞仆 亟亟舒亞 亶勵 弍舒亶亟舒亞. 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵
- 14. A19 - 14 造 舒亳仄亟舒舒 从仗仂仍仂亞 仂仂仆 仆亞亳亶仆 弍舒仆从亳仆亟 舒从从亠亟亳亳于亳亶亞 弍舒舒仍亞舒舒亢仍舒亞 弍仂仍仆仂.勵 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵 从从亠亟亳亳于 (L/C) 造 丿舒舒亟仍舒亞舒舒亶 弍亳亳亞 弍舒亳仄舒亟 亳于仍仆 亟舒 (sight 于仍 亞舒舒舒仆), 舒亳仍亢舒舒仆 仆仄亢仍, 弍仂仍仂仆 于亳亶仆 弍亳亳亞 弍舒亳仄 (舒舒舒仆 弍舒亳仄).
- 15. A19 - 15 造 舒舒舒 仍 亟 弍亳亶唏 勵勵 足 standby 舒从从亠亟亳亳于: 亟舒仍亟舒仆 舒于舒亞 仂亳仂仍仂仆 亟舒亞 亟舒仍亟舒亞亳亟 仍弍 唏 唏 亳亶亞亞 亶 亠亟 舒仆 亢仆.勵 勵 勵勵 足 丿亳仍亢 仍亞亳亶仆 舒从从亠亟亳亳于勵勵 : 仆亳亶 舒亳亞 亞勵 舒仆仆 舒从从亠亟亳亳于亞 弍 仍亟 仆 于仍 亞仍仆勵 亞舒于亟舒亞 亞亟亟 亳仍亢 仍亢 弍仂仍仆仂.勵勵 足 从从亠亟亳亳于亳亶仆 亟舒亞 仂仍仂亞仆 于舒舒亳仍舒仍: 仆仆 舒亳亞 亞 仂仍仂亞亞 亳亶仆勵 仆亳亶仍 仍亞 亳仍亢 仍亟亞.勵勵 勵勵 勵勵 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵 从从亠亟亳亳于 (L/C)
- 16. A19 - 16 舒仆从仆 舒从亠仗 (BA) 造 亅仆 仆 弍舒仆从仆 (亳仄仗仂仍仂亞亳亶仆 弍舒仆从) 仍仆勵 亰 于 , 亞舒亞舒舒仆 亞舒舒舒仆 亟舒 ﾐ. 丱 仍仆唏 唏唏 勵 舒于舒亞 弍舒仆从 仆 亟亞舒于舒 亞舒舒舒 仍 仆勵 亰仄亳 亟舒仆 仍弍 亳亶亞 仍 亞亶.唏 唏 唏 唏 勵勵 造 丱于 从仗仂仍仂亞 仍弍 仍 亞亟 亳亶亞唏 唏 唏 唏 唏 仍亳亶亞 亞 亶 弍舒亶亞舒舒 弍仂仍 弍舒仆从仆勵 勵 勵 舒从亠仗亳亶亞 仄 仆亞 仆亳亶 亰舒 亰仍亟 亟舒仍亟舒唏 唏 弍仂仍仂仄亢仂亶 ﾐ. 舒仆从仆 舒从亠仗亳亶亞 亰仄亳亞 仆 亟舒仍亟舒舒仆 舒仆 亢亳仍舒舒 舒仆亞舒亞亟舒仆舒.勵勵 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵
- 17. A19 - 17 造 仆亳亶亟 弍 仆亳亶 于 仆 弍舒仆从仆唏 唏唏 勵 勵勵 亰仍亳亶仆 仆 弍舒亞舒 弍舒亶亟舒亞. 仂亞亳仆仂勵勵 亞舒舒舒 舒仆亞亳亶仆 仆 舒舒 弍仂仍仂仆勵 舒亳仍亢舒舒仆 弍亳亞亳亶仆 仂仂仂仆亟 弍舒亶亟舒亞. 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵 舒仆从仆 舒从亠仗 (BA) 造 丱仂仂亞亟仍舒仍仆 于 亟 仍仆 舒于舒勵 从仂仄亳亳亶亞 仆仄仆 亟舒仆 弍 仆亳亶 ( 仆亳亶勵 勵勵 勵勵 于) 仍弍 亳亶亞 弍舒仆从 仍仆 舒于亟舒亞.唏 唏 勵
- 18. A19 - 18 亢仍仆 从舒仗亳舒仍仆 舒仆 亢亳仍勵勵 造 舒仆从亟 弍舒舒舒 仄舒亠亳舒仍亞 亟舒仍亟舒仆 舒于舒舒舒 弍仍仆 仄 仆亞 仆亟 于亳舒 仍唏 唏 勵 舒亢仍仆 从舒仗亳舒仍仆 亳从仍亳亶亞 舒仆 亢 仍勵勵 勵勵 弍仂亞亳仆仂 亞舒舒舒 亰仍 舒仆亞舒亟舒亞. 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵
- 19. A19 - 19 仆亟 亞舒舒舒仆 从舒仗亳舒仍 弍舒舒舒仆 舒仆 亢亳仍 ( 亳仍亢 仍仍)勵勵 唏 勵勵 造 仄仗仂仍仂亞 亠 仆亳亶亟 3-7 亢亳仍亳亶仆唏 唏唏 亞舒舒舒仆 亳仄仗仂仂仍仂仆 从舒仗亳舒仍 弍舒舒舒仆舒舒 仍弍 亳亶亞 从仗仂仍仂亞亳亟唏 唏 仍 亳亶仆 弍亳亞亳亶亞 亞舒亞舒亟舒亞.唏 唏 唏 造 亅从仗仂仍仂亞 弍亳亞亳亶亞 弍舒仆从亳仆亟 弍舒舒仍亞舒舒亞 亶勵 亟舒仍亟亟舒亞 (仂亠亶亳仆亞 弍舒仆从). 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵
- 20. A19 - 20 亅亞 亟舒仍亟舒舒 造 亅仆 仆 仆亞 仍 亳亶 弍舒舒舒仆 亟舒仍亟舒舒 仆 舒亶仆 仍舒舒 亟舒仍亟舒仆 舒于舒 弍ﾑ 仂仍亳仍仂 弍舒舒舒舒亶 仂仍弍仂仂仂亶 弍舒亶 亞舒亟舒舒亟 亟舒仍亟舒舒仆 亞 亶仍亞 ﾐ.勵 造 亳亶仍亞 亞 亟舒仍亟舒舒仆 仍 亟亟 弍舒亠,唏 勵勵 仆 仆 仍弍 (弍 亞亟 仆亳亶亞 弍舒舒仆唏 唏 唏 唏 勵 勵勵 亟舒仍亟舒仆 舒于舒), 弍仂仍仂仆 亞 亟舒仍亟舒仆 舒于舒仍. 造 仆亟仆 仂仂仍仂亞亳亟 仆 亰舒亞亳亶仆 亞舒亰舒 弍仂仍仂仆勳 -亟 弍舒亶仆舒.勳 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆 舒亞亟勵勵
- 21. A19 - 21 仍仂仆 仍仆 亟舒仍亟舒舒仆 仍唏 唏 亟仍 亟亳亶仆 仍仄舒舒 亰舒亞亳亶仆 亞舒亰仆勵勵 亳仆亳亳亟 弍仂仍仂仆 于亳亶仆 亠从仂 亟仍亳亶亞 弍仍亢, 亞舒亟舒舒亟 亟舒仍亟舒舒亞 亟仄亢亳亳亶仆 仍亟 从仗仂仆 亰仍, 从仗仂仆 舒仆 亢亳仍 弍仂仍仂仆 弍舒舒仍亞舒舒仆勵勵 仍弍 亟亳亶仆 礌亰 弍 亳亶仆 仍弍 亟亳亶亞唏 唏 唏 勵勵 勵 勵勵 舒仆舒仍 弍仂仍亞仂亟仂亞. 仍仂仆 仍仆 亟舒仍亟舒舒亞 亳亟于亢 仍亟亞 舒亞亠仆仍舒亞亟勵勵
- 22. A19 - 22 仍仂仆 仍仆 亟舒仍亟舒舒亞 亳亟于亢 仍亟亞 舒亞亠仆仍舒亞亟勵勵 丕-仆 从仗仂 亳仄仗仂仆 弍舒仆从 (Ex-Imbank) 亅仆 丕-仆 亰舒亞亳亶仆 亞舒亰仆 舒亞亠仆仍舒亞 仆勵勵 丕-仆 弍舒舒舒 亶仍亳仍亞仆亳亶 从仗仂亞勵 亟仄亢亳亢, 舒仆 亢 仍 亰舒仄舒舒 舒亢仍仆 弍舒亶勵勵 勵勵 弍亳亶 弍仂仍亞仂 弍仂仍仂仆 亞舒亟舒舒亟 亰舒 亰仍 亟 丕-仆 从仂仄仗舒仆亳亟仆 仍亟 仆亳亶亞 亟仄亢亳唏 唏 唏唏 亰仂亳仍亞仂仂亶 弍舒亶亟舒亞. 亅仆 仆 舒亳仍亢舒舒仆 亰仍, 亟 亰仍, 弍仂仍仂仆 从仗仂仆 亰仍亳亶仆 亟舒舒亞舒仍仆 弍舒舒仍亞舒舒亞 舒仆舒仍 弍仂仍亞仂亟仂亞.
- 23. A19 - 23 丱于亳亶仆 从仗仂仆 舒仆 亢亳仍亳亶仆勵勵 从仂仗仂舒亳 (PEFCO) PEFCO 仆 舒亳仍亢舒舒仆 弍舒仆从, 舒亢 亶仍亟于亳亶仆勵 从仂仄仗舒仆亳亟仆 从仂仆仂亳仄仆 亰仄亟亞 于亳亶仆 从仂仗仂舒亳 ﾐ. 亅从-仄 弍舒仆从舒亶 舒仄舒仆 PEFCO 亞舒舒舒舒亶 弍仂仆亟 亞舒亞舒 亰舒仄舒舒 亞舒亟舒舒亟仆 亟舒仍亟舒仆 舒于舒亞亟亞 亟仆亟 弍仂仍仂仆 亞舒舒舒舒亶, 仂亞仄仂仍 亶 舒仆 亢亳仍 舒仆亞舒亟舒亞.勵勵 勵勵 仍仂仆 仍仆 亟舒仍亟舒舒亞 亳亟于亢 仍亟亞 舒亞亠仆仍舒亞亟勵勵
- 24. A19 - 24 丱亳仍亳亶仆 舒仆舒亟 亟舒 于亳亶仆 仆亞 仂仍舒仍仆唏 唏 唏 从仂仗仂舒亳 (OPIC) OPIC 仆 亞舒亟舒舒亟 仆亞 仂仍舒仍仆 亞 仆 舒唏 唏 唏 唏 唏 仄亢亶 仍 亳亶仆 亟仍亳亶亞 仆 亟舒舒亞舒唏 亰舒仄舒舒 丕-仆 仆亞 仂仍舒亞亟舒亟 舒仍亟舒亞唏 唏 唏 亰舒亞亳亶仆 亞舒亰仆 舒亞亠仆仍舒亞 ﾐ. 亅仆 仆 仄 仆 亞舒亟舒舒亟 弍亳亰仆亠 亟亳亶亞 亰仍 弍仂仍仂仆唏 勵勵 亰仍亳亶仆 弍舒舒仍亞舒舒亞舒舒 亟舒仄亢仍舒仆 舒仆 亢亳仍勵勵 舒仆亞舒亟舒亞. 仍仂仆 仍仆 亟舒仍亟舒舒亞 亳亟于亢 仍亟亞 舒亞亠仆仍舒亞亟勵勵
- 25. A19 - 25 舒舒亞舒仍 弍仂仍仂仆 舒仆 亢亳仍 亞舒亟仆舒 丕 仂仍仂仆勵勵 仍仆 亟舒仍亟舒舒亞 亟仄亢亳 舒于舒仆 亰舒舒仍亟舒亶 弍舒亶亟舒亞. 丱-仆 舒亟仍亟舒亟 舒亳 弍仂仍亞仂仆 1984 仂仆 舒亟舒舒亟 丱亟舒仍亟舒舒仆 仂仗仂舒亳亶仆 亰舒舒仍亟亞 2000 仂仆 FSC-亞 亳仆亞 亶 弍仂仍亞仂 弍仂仍仂仆 亞舒亰舒勵 勵 仆亞亳亶仆 亞舒亟仆舒 仂仍仂亞仂 舒舒仍仆 舒亶 仍亳舒 仂仍亢 丕-仆 舒于舒 仆仂亞亟仂 仆亳亶 仂仍仂亞仆 仂亟仂仂亶仍仂仍仂仂 仂亟仂仂亶 亞舒亰舒 仆亞亳亶仆 亞舒亟仆舒 仂仍仂亞亟亞 舒舒仆. 仍仂仆 仍仆 亟舒仍亟舒舒亞 亳亟于亢 仍亟亞 舒亞亠仆仍舒亞亟勵勵
- 26. A19 - 26 仍仂仆 仍仆 亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆勵勵 亳亶亟于 亟亳亶仆 -亳亶仆 仆 仆亟 亰 仍 仆 仍勵勵 勳 勵 勵 勵勵 唏 唏唏 ( ) ( )[ ] ( ) 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 + = n t t m j tjtj k1= 1 ,, 1 ERECFE =Value E (CFj,t ) = t 亠亳亶仆 丕-仆 仂仍亞仂亶勵 从仂仄仗舒仆亳亶 仍仆 舒于舒勵 j 于舒仍ﾑ舒舒 仍亞亟亢 弍亶勵 仄 仆亞 仆 亞舒仍唏 唏 E (ERj,t ) = t 亠亳亶仆 亟仂仍仍舒 于 勵 唏 唏 j 于舒仍ﾑ仆 仍亞亟亢 弍亶 舒仆勵 丱亟舒仍亟舒舒仆 舒仆 亢亳仍亳亶仆勵勵 亳亶亟于 亟勵勵
- 27. A19 - 27 仂亞亳仆仂 亞舒舒舒 舒仆 亢亳仍勵勵 20 仍亞勵
- 28. A19 - 28 仍亞亳亶仆 亰仂亳仍亞仂勵 To explain why MNCs consider foreign financing; To explain how MNCs determine whether to use foreign financing; and To illustrate the possible benefits of financing with a portfolio of currencies.
- 29. A19 - 29 Sources of Short-Term Financing Euronotes are unsecured debt securities with typical maturities of 1, 3 or 6 months. They are underwritten by commercial banks. MNCs may also issue Euro-commercial papers to obtain short-term financing. MNCs utilize direct Eurobank loans to maintain a relationship with the banks too.
- 30. A19 - 30 Internal Financing by MNCs Before an MNCs parent or subsidiary searches for outside funding, it should determine if any internal funds are available. Parents of MNCs may also raise funds by increasing their markups on the supplies that they send to their subsidiaries.
- 31. A19 - 31 Why MNCs Consider Foreign Financing An MNC may finance in a foreign currency to offset a net receivables position in that foreign currency. An MNC may also consider borrowing foreign currencies when the interest rates on such currencies are attractive, so as to reduce the costs of financing.
- 32. A19 - 32 Determining the Effective Financing Rate The actual cost of financing depends on the interest rate on the loan, and the movement in the value of the borrowed currency over the life of the loan.
- 33. A19 - 33 Effective financing rate, rf = {(1+if ) St+1} {1 St} =(1+if ) St+1 1 {1 St} St where if = the interest rate on the loan St = beginning spot rate St+1 = ending spot rate Determining the Effective Financing Rate The effective rate can be rewritten as rf = (1+if ) (1+ef ) 1 where ef = the % in the spot rate
- 34. A19 - 34 Criteria Considered for Foreign Financing There are various criteria an MNC must consider in its financing decision, including 造 interest rate parity, 造 the forward rate as a forecast, and 造 exchange rate forecasts.
- 35. A19 - 35 Criteria Considered for Foreign Financing Interest Rate Parity (IRP) If IRP holds, foreign financing with a simultaneous hedge of that position in the forward market will result in financing costs similar to those for domestic financing.
- 36. A19 - 36 The Forward Rate as a Forecast If the forward rate is an unbiased predictor of the future spot rate, then the effective financing rate of a foreign loan will on average be equal to the domestic financing rate. Criteria Considered for Foreign Financing
- 37. A19 - 37 Exchange Rate Forecasts Firms may use exchange rate forecasts to forecast the effective financing rate of a foreign currency, or they may compute the break-even exchange rate that will equate the domestic and foreign financing rates. Sometimes, it may be useful to develop probability distributions, instead of relying on single point estimates. Criteria Considered for Foreign Financing
- 38. A19 - 38 Financing with a Portfolio of Currencies While foreign financing can result in significantly lower financing costs, the variance in the costs is higher. MNCs may be able to achieve lower financing costs without excessive risk by financing with a portfolio of currencies.
- 39. A19 - 39 Financing with a Portfolio of Currencies If the chosen currencies are not highly positively correlated, they will not be likely to experience a high level of appreciation simultaneously. Thus, the chances that the portfolios effective financing rate will exceed the domestic financing rate are reduced.
- 40. A19 - 40 A firm that repeatedly finances in a currency portfolio will normally prefer to compose a financing package that exhibits a somewhat predictable effective financing rate on a periodic basis. When comparing different financing packages, the variance can be used to measure how volatile a portfolios effective financing rate is. Financing with a Portfolio of Currencies
- 41. A19 - 41 For a two-currency portfolio, E(rP) = wAE(rA) + wBE(rB) where rP = the effective financing rate of the portfolio rX = the effective financing rate of currency X wX = the % of total funds financed from currency X Financing with a Portfolio of Currencies
- 42. A19 - 42 Var(rP) = wA 2 A 2 + wB 2 B 2 + 2wAwBABCORRAB X 2 = the variance of currency Xs effective financing rate CORRAB = the correlation coefficient of the two currencies effective finance rates Financing with a Portfolio of Currencies For a two-currency portfolio,
- 43. A19 - 43 Impact of Short-Term Financing Decisions on an MNCs Value ( ) ( )[ ] ( ) 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 + = n t t m j tjtj k1= 1 ,, 1 ERECFE =Value E (CFj,t ) = expected cash flows in currency j to be received by the U.S. parent at the end of period t E (ERj,t ) = expected exchange rate at which currency j can be converted to dollars at Expenses Incurred from Short-Term Financing
- 44. A19 - 44 International Cash Management 21Chapter South-Western/Thomson Learning 息 2003
- 45. A19 - 45 Chapter Objectives To explain the difference between a subsidiary perspective and a parent perspective in analyzing cash flows; To explain the various techniques used to optimize cash flows; To explain common complications in optimizing cash flows; and To explain the potential benefits and risks of foreign investments.
- 46. A19 - 46 Cash Flow Analysis: Subsidiary Perspective The management of working capital has a direct influence on the amount and timing of cash flow : 造 inventory management 造 accounts receivable management 造 cash management 造 liquidity management
- 47. A19 - 47 Subsidiary Expenses International purchases of raw materials or supplies are more likely to be difficult to manage because of exchange rate fluctuations, quotas, etc. If the sales volume is highly volatile, larger cash balances may need to be maintained in order to cover unexpected inventory demands. Cash Flow Analysis: Subsidiary Perspective
- 48. A19 - 48 Subsidiary Revenue International sales are more likely to be volatile because of exchange rate fluctuations, business cycles, etc. Looser credit standards may increase sales (accounts receivable), though often at the expense of slower cash inflows. Cash Flow Analysis: Subsidiary Perspective
- 49. A19 - 49 Subsidiary Dividend Payments Forecasting cash flows will be easier if the dividend payments and fees (royalties and overhead charges) to be sent to the parent are known in advance and denominated in the subsidiarys currency. Cash Flow Analysis: Subsidiary Perspective
- 50. A19 - 50 Subsidiary Liquidity Management After accounting for all cash outflows and inflows, the subsidiary must either invest its excess cash or borrow to cover its cash deficiencies. If the subsidiary has access to lines of credit and overdraft facilities, it may maintain adequate liquidity without substantial cash balances. Cash Flow Analysis: Subsidiary Perspective
- 51. A19 - 51 Centralized Cash Management While each subsidiary is managing its own working capital, a centralized cash management group is needed to monitor, and possibly manage, the parent-subsidiary and intersubsidiary cash flows. International cash management can be segmented into two functions: 造 optimizing cash flow movements, and 造 investing excess cash.
- 52. A19 - 52 Centralized Cash Management The centralized cash management division of an MNC cannot always accurately forecast the events that may affect parent- subsidiary or intersubsidiary cash flows. It should, however, be ready to react to any event by considering 造 any potential adverse impact on cash flows, and 造 how to avoid such adverse impacts.
- 53. A19 - 53 Techniques to Optimize Cash Flows Accelerating Cash Inflows The more quickly the cash inflows are received, the more quickly they can be invested or used for other purposes. Common methods include the establishment of lockboxes around the world (to reduce mail float) and preauthorized payments (direct charging of a customers bank account).
- 54. A19 - 54 Minimizing Currency Conversion Costs Netting reduces administrative and transaction costs through the accounting of all transactions that occur over a period to determine one net payment. A bilateral netting system involves transactions between two units, while a multilateral netting system usually involves more complex interchanges. Techniques to Optimize Cash Flows
- 55. A19 - 55 Managing Blocked Funds A government may require that funds remain within the country in order to create jobs and reduce unemployment. The MNC should then reinvest the excess funds in the host country, adjust the transfer pricing policy (such that higher fees have to be paid to the parent), borrow locally rather than from the parent, etc. Techniques to Optimize Cash Flows
- 56. A19 - 56 Managing Intersubsidiary Cash Transfers A subsidiary with excess funds can provide financing by paying for its supplies earlier than is necessary. This technique is called leading. Alternatively, a subsidiary in need of funds can be allowed to lag its payments. This technique is called lagging. Techniques to Optimize Cash Flows
- 57. A19 - 57 Complications in Optimizing Cash Flows Company-Related Characteristics 造 When a subsidiary delays its payments to the other subsidiaries, the other subsidiaries may be forced to borrow until the payments arrive. Government Restrictions 造 Some governments may prohibit the use of a netting system, or periodically prevent cash from leaving the country.
- 58. A19 - 58 Characteristics of Banking Systems 造 The abilities of banks to facilitate cash transfers for MNCs may vary among countries. 造 The banking systems in different countries usually differ too. Complications in Optimizing Cash Flows
- 59. A19 - 59 Investing Excess Cash Excess funds can be invested in domestic or foreign short-term securities, such as Eurocurrency deposits, bills, and commercial papers. Sometimes, foreign short-term securities have higher interest rates. However, firms must also account for the possible exchange rate movements.
- 60. A19 - 60 Centralized Cash Management Centralized cash management allows for more efficient usage of funds and possibly higher returns. When multiple currencies are involved, a separate pool may be formed for each currency. The investment securities may also be denominated in the currencies that will be needed in the future. Investing Excess Cash
- 61. A19 - 61 Determining the Effective Yield The effective rate for foreign investments rf = (1+if ) (1+ef ) 1 where if = the quoted interest rate on the investment ef = the % D in the spot rate If the foreign currency depreciates over the investment period, the effective yield will be less than the quoted rate. Investing Excess Cash
- 62. A19 - 62 Implications of Interest Rate Parity (IRP) A foreign currency with a high interest rate will normally exhibit a forward discount that reflects the differential between its interest rate and the investors home interest rate. However, short-term foreign investing on an uncovered basis may still result in a higher effective yield. Investing Excess Cash
- 63. A19 - 63 Use of the Forward Rate as a Forecast If IRP exists, the forward rate can be used as a break-even point to assess the short-term investment decision. The effective yield will be higher if the spot rate at maturity is more than the forward rate at the time the investment is undertaken, and vice versa. Investing Excess Cash
- 64. A19 - 64 Use of Exchange Rate Forecasts Given an exchange rate forecast, the expected effective yield of a foreign investment can be computed, and then compared with the local investment yield. It may be useful to use probability distributions instead of point estimates, or to compute the break-even exchange rate that will equate foreign and local yields. Investing Excess Cash
- 65. A19 - 65 Diversifying Cash Across Currencies If an MNC is not sure of how exchange rates will change over time, it may prefer to diversify its cash among securities that are denominated in different currencies. The degree to which such a portfolio will reduce risk depends on the correlations among the currencies. Investing Excess Cash
- 66. A19 - 66 Use of Dynamic Hedging to Manage Cash Dynamic hedging refers to the strategy of hedging when the currencies held are expected to depreciate, and not hedging when they are expected to appreciate. The overall performance is dependent on the firms ability to accurately forecast the direction of exchange rate movements. Investing Excess Cash
- 67. A19 - 67 Impact of International Cash Management on an MNCs Value ( ) ( )[ ] ( ) 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 錚 + = n t t m j tjtj k1= 1 ,, 1 ERECFE =Value E (CFj,t ) = expected cash flows in currency j to be received by the U.S. parent at the end of period t E (ERj,t ) = expected exchange rate at which currency j can be converted to dollars at Returns on International Cash Management