Chap005尤恩,国际财务管理,英文第五版ppt

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Gresham’s Law
• Gresham’s le
metal is the one that tends to circulate. • Suppose that you were a citizen of Germany
• The exchange rate between two country’s currencies would be determined by their relative gold contents.
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The International Monetary System
Chapter Two
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Chapter Two Outline
• Evolution of the International Monetary System • Current Exchange Rate Arrangements • European Monetary System • Euro and the European Monetary Union • The Mexican Peso Crisis • The Asian Currency Crisis • The Argentine Peso Crisis • Fixed versus Flexible Exchange Rate Regimes

Calls vs. Puts:
– Call options give the holder the right, but not the obligation, to buy a given quantity of some asset at some time in the future at prices agreed upon today.
In general, open interest typically decreases with term to maturity of most futures contracts.
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Options Contracts: Preliminaries
An option gives the holder the right, but not the obligation, to buy or sell a given quantity of an asset in the future at prices agreed upon today.
With futures contracts, we hains and losses rather than one big settlement at maturity.
Every trading day:
– If the price goes down, the long pays the short. – If the price goes up, the short pays the long.
At initiation of the contract, the long posts an initial performance bond of $6,500.

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How to Measure Economic Exposure
• Economic exposure is the sensitivity of the future home currency value of the firm’s assets and liabilities and the firm’s operating cash flow to random changes in exchange rates.
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Economic Exposure
• Exchange rate risk is applied to the firm’s competitive position.
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Management of Economic Exposure
Chapter Nine
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Chapter Outline
• How to Measure Economic Exposure • Operating Exposure: Definition • An Illustration of Operating Exposure • Determinants of Operating Exposure • Managing Operating Exposure

Financial Innovations, such as
Currency futures and options Multi-currency bonds Cross-border stock listings International mutual funds
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The Example of Nestlé’s Market Imperfection
Nestléused to issue two different classes of common stock bearer shares and registered shares.
Foreigners were only allowed to buy bearer shares. Swiss citizens could buy registered shares. The bearer stock was more expensive.
McGraw-Hill/Irwin
INTERNATIONAL FINANCIAL
MANAGEMENT
Fifth Edition EUN / RESNICK
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Globalization and the Multinational Firm
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Other Goals
These types of issues can be much more serious in many other parts of the world, especially emerging and transitional economies, such as Indonesia, Korea, and Russia, where legal protection of shareholders is weak or virtually non-existing.