...Global Financial Management FIN630 AIU Abstract This paper will have a comparative advantage of Vernon's product life-cycle theory of FDI. It will discuss green field investments over cross-border acquisitions and political risk of capital budgeting process of foreign investment projects. It will also discuss forward versus backward internalization and currency exchange risk into the capital budgeting process of foreign investment. Global Financial Management Vernon’s Product Life-Cycle Theory Raymond Vernon proposed his Product Life Cycle (PLC) theory in the mid 1960’s, based on product development and international trend observations of the US role at the time. The PLC theory stated that new products would first be developed and introduced in the US. Advanced markets, such as Europe and Japan, had their demand grow which caused the US to export the new product until the demand levels in the foreign country required the production in the advanced markets. Cost factors become significant as the product reached a maturity phase in the life cycle which warrants the production at the most efficient location. That results in advanced markets exporting the product back to the US. The product is produced in plants located in developing countries because these countries hold a relatively low cost production advantage, as competition further increased in the global market place. The product would once again be exported back to the US (Hill, 2009). Firms will commence...
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...Global Financial Management FIN630 AIU Abstract This paper will discuss the long-term investment projects Acme is considering doing in China. Acme is a US firm that plans to focus on investing in and penetrating markets in China. It will discuss the potential profits as well as the policies that are currently in effect in China. It will give the information on the factors that would be used to consider doing business in China such as import/export restrictions, labor relations, supplier financing, tax rules, etc. Global Financial Management Introduction A long-term investment, which includes stocks, bonds, real estate, and cash, is an account on a company’s asset side of the balance sheet that represents an investment the company intends to hold on to for more than a year (Definition, 2013). The US firm, Acme, wants to focus on investing in markets in China. There are many factors to consider when doing business in any foreign country, China is no different. The first bit of information to look at is the back ground of China. China, whose capital and focal point is Beijing, with over 4,000 years of verifiable history, is believed to have the oldest continuous civilization. The official language of China, which is derived from a Mandarin dialect, is Chinese. China is a Communist country that promotes atheism and a constitution that guarantees freedom of religion (China Introduction, 2013). Culture The second bit of information to look at is the appearance...
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...Global Financial Management FIN630 AIU Abstract This paper will have a comparative analysis of starting operations on establishing a Greenfield production facility overseas. This comparative analysis will include the countries’ currencies, trade policies, culture, and a recommendation with a supporting rational for the country selected. Global Financial Management Introduction Acme, a U.S. multinational enterprise, is planning the stages of establishing a Greenfield production facility overseas. Acme is expanding its international program. The two selected foreign countries for which the steering committee has proposed to start operations in are Germany and Japan. A comparative analysis between the two counties will include the currency of each country, trade policies, and cultural variables that can affect the operations and profitability of the production facility. This paper is meant to discuss which of the two countries are recommended to begin the production facility in. Germany Germany, a federal republic, has the largest population of all the European Union, or EU. Germany has the world’s third largest economy, and it produces automobiles, engineering products, electronic equipment, communications equipment, chemicals, and pharmaceuticals. The most widely spoken language in the EU is German (Germany, Europa, 2013). Currency / Trade Because Germany is a part of the EU, its currency is the euro. Germany has relatively few non-tariff barriers...
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...SUN=237956481 1) ACME Annual Inflation Year Years After 2013 SUN Annual Inflation Cost in Euros 2013 0 237956481 2% 4759129.62 2014 1 242715610.6 2% 4854312.213 2015 2 247569922.9 2% 4951398.457 2016 3 252521321.4 2% 5050426.427 2017 4 257571747.8 2% 5151434.956 2018 5 262723182.8 2% 5254463.655 2019 6 267977646.4 2% 5359552.929 2020 7 273337199.4 2% 5466743.988 2021 8 278803943.4 2% 5576078.868 2022 9 284380022.3 2% 5687600.446 2023 10 290067622.8 2% 5801352.455 2024 11 295868975.2 2% 5917379.505 2025 12 301786354.8 2% 6035727.095 2026 13 307822081.9 2% 6156441.637 2027 14 313978523.5 2% 6279570.471 TOTAL COST IN 2027 6279570.471 2) Sinking Fund Amount of Issue Year Deposit Total per Year in Euros 237956481 1 3% 7138694.43 245095176.5 2 3% 14705710.59 259800889.1 3 3% 23382080.02 283182972.1 4 3% 33981956.65 317164932.8 5 3% 47574739.92 364739677.8 6 3% 65653142 430392825.8 7 3% 90382493.42 520775326.2 8 3% 124986078.3 645761412.6 9 3% 174355581.4 820117003 10 3% 246035100.9 1066152114 11 3% 351830197.6 1417982323 12 3% 510473636.1 1928455971 13 3% 752097828.6 2680553812 14 3% 1125832601 3806386427 15 3% 1712873892 5519260335 16 3% 2649244961 8168505312 17 3% 4165937709 12334443037 18 3% 6660599240 18995042296 19 3% 10827174109 29822216423 20 3% 17893329854 47715546297 21 3% 30060794167 77776340486 22 3% 51332384720 1.29109E+11 23 3% 89085020407...
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...Module 1 - The Accoutant As Strategic Business Adviser The Need For Advice 1.4 (9 issues small business entrepreneurs seek advice about - business structure, IP, liability, regulation, contracts, etc) 1.4 (Malach, Robinson & Radcliff 2006) 1.4 (business efficiency & productivity, management information systems, risk management & internal controls) 1.5 (strategic level - selecting appropriate growth strategies, identifying new products and markets, etc) 1.5 (the need for advice variety of reasons - consider the demand for advice arises) 1.5 (Xiao & Fu 2009) 1.5 Table 1.1 - Characteristics Of Different Sized Organisations 1.6 (SE MSE LE - organisation, strategy, customer/community, financial, governance, work force, IT processes) 1.6 Requests For Advice: Operational - Srategic - Global 1.7 (improving operational performance, greater strategic role, globally relevant issues) 1.7 Example 1.1: A Busniess Dilemma 1.7 Counterpoint (opposing arguement, soft skills, first: make the right decision about the services they perform - second:) 1.7 Providing And Implementing Advice (technical skills, soft skills) 1.8 Figure 1.1 - Providing Business Advisory Services 1.8 (issue, requirement, request, investigation, advice, decision, implementation) 1.8 (recommend actions should be well supported, identify key stakeholders) 1.9 Figure 1.2 - The Chain Of Events For Business Advisory Services) 1.9 Example 1.2: Succession Plan - Please Help 1.9 ...
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...Strategy Map – DEPARTMENT – Funds Department The following illustration depicts the strategy map of the DEPARTMENT – Funds (R&S) Department. The business unit, reports under the Financial and Distribution Services Division of DEPARTMENT. The key responsibilities of the Funds Department is to facilitate the collection of sales amounts due from Travel Agents, and settling of the funds due to Airlines, this process is done through the Hinge Bank Account while ensuring the funds of the Airlines are safeguarded against any risk. The business unit is comprised of a Central Team in XXXX, managing the coordination and development of the process, combined with a Regional Team responsible for execution of the daily operations. The development of the strategy map, allows the Funds department to address the following areas: ➢ Identification and Alignment of the Funds objectives with the “DEPARTMENT Strategic House” and Vision. ➢ Communication Tool to allow the stakeholders to understand the key areas the department are focusing on. ➢ Identifying the cause and effects of implementing certain processes and strategies, and how this would contribute to driving the organizational objectives. [pic] [pic] Learning and Growth Perspective People, Performance & Development: ➢ One of the key objectives of DEPARTMENT is to deliver its mission, by making the organization a great place to work through living and upholding its values on an everyday...
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...their business. JPMorgan raised more than $2.1 trillion in capital for its clients, and more than $75 billion of these capital expenditures went to nonprofit and government entities. Since the 2004 merger with Bank One, JPMorgan has done well against other financial companies and performed slightly below the S&P 500. The company’s tangible book value per share has steadily increased over time, showing a promising future for JPMorgan. Legal and regulatory costs have decreased the value of JPMorgan’s stock, which has lead to a lower price/earnings ratio. Though these legal matters have presented a formidable obstacle, JPMorgan is determined to overcome them over time to make sure the quality of its business shines. Overall, JPMorgan’s four franchises have strengthened their leadership positions, increased their market share, and have continued to deliver on their commitment to improve customer satisfaction and foster innovation. Scope The data and analysis within this report comes from the audited financial statements by PricewaterhouseCoopers for the fiscal year ending December 31, 2014. Findings 1) JPMorgan has an outstanding franchise that has emerged as an endgame winner a) Recent JPMorgan financial results have shown its great ability to adapt to both marketplace and...
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...Global Finance Environment Paper FIN/403 May 4, 2008 Globalization refers to the merging of national markets into one huge global marketplace. In today’s market, selling internationally is much easier due to falling barriers in cross-border trade. Now businesses don’t have to be industry giants to operate and succeed in global markets. Although it can be beneficial to offer a standard product that can be used worldwide, significant differences still exist between national markets such as cultural differences, consumer taste differences, product preferences and legal regulations. It is important to define and understand these differences when merging into national markets. Globalization is inevitable and it’s happening at an astonishing speed in nearly every market possible. The technology era that we are in has enabled businesses to join forces like never before and we are seeing significant changes in the global marketplace. There are main drivers in globalization and this paper will define three of them, as well as describe the risks associated with financial investing, and explain the importance of cultural sensitivity and ethics in global finance. Drivers of Globalization Market drivers Domestic markets are saturated and growth opportunities are often times limited. Expanding globally opens up many new opportunities allowing for real growth within a business. The following lists in detail the specific market drivers that play a key role...
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...| About IMF The International Monetary Fund (IMF) works to bring up International Monetary Cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and to reduce the poverty around the world. IMF was created in 1945 and it’s an organization of 187 countries. Why IMF was created and how it works? The IMF, also known as the “Fund,” was conceived at a United Nations conference convened in Bretton Woods, New Hampshire, United States, in July 1944. The 44 governments represented at that conference sought to build a framework for economic cooperation that would avoid a repetition of the vicious circle of competitive devaluations that had contributed to the Great Depression of the 1930s. Work of IMF The primary mission of the IMF is to provide financial assistance to countries those countries who experience financial and economic difficulties and to sought those difficulties they are given financial help by using funds deposited with the IMF from the institution’s 187 member countries. Member of IMF states with balance of payments problems, which often arise from these difficulties, may request loans from IMF to help fill gaps between what countries earn and/or are able to borrow from other official lenders and what countries must spend to operate, including covering the cost of importing basic goods and services. In return, countries are required to launch certain reforms which have often been dubbed...
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...BUSINESS ADMINISTRATION TERM PAPER TOPIC: ISSUES IN GLOBAL BUSINESS MANAGEMENT DSM 602: By DR. YABS NGETICH MONICAH D61/69197/2013 INTRODUCTION The scope of strategic business issues faced by companies and organizations striving to operate and be successful internationally has widened due to an increasingly broad geographic scope and the increasing complexity of technology. Strategic issues arise not only through the formal, periodic strategic planning processes in companies but also can, and quite often do arise unpredictably due to new insights, unexpected advances in technology or competitive activities in the market place. All companies have their way of identifying and dealing with these being their most critical strategic questions. However, theprocess of managing emerging strategic issues is typically non-structured, not necessarily optimally suited to enable the effective identification of the most critical questions and the appropriate allocation of top management attention and corporate intelligence support to answer the identified strategic questions. Despite the past research during 1960s, 1970s, and 1980s into the domain of strategic issues (SI), strategic issue management (SIM), and strategic issue management systems (SIMS) there is a scarcity applicable approaches for firms to use in improving their attention focus and distribution in strategic issue management processes. The underpinnings of strategic management hinge on managers gaining an understanding of competitors...
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........................................................ I . I1 . 3 4 10 10 11 13 14 14 17 19 THE GLOBAL AGENDA .......................................................................................... PROGRESS IN THE IFA AGENDA ....................................................................... The Financial Sector Assessment Program (FSAP) ............................................. The Reports on the Observance o f Standards and Codes (ROSC) ....................... The Financial Sector Reform and Strengthening Initiative (FIRST) .................... The Financial Sector Reform and Strengthening Initiative (FIRST) .................... Combating Money Laundering and Terrorist Financing (AML/CFT) ................. Debt Sustainability & Debt Management ............................................................. Social Protection................................................................................................... A. B. C. C. D. E. F. ANNEX Accounting and Auditing ........................................................................................... Corporate Governance ............................................................................................. Insolvency and Creditor Rights ................................................................................ 22 28 33 2 INTRODUCTION 1. In response to major financial crises in the 1990s, the international community embarked o n a range o f initiatives to help prevent...
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...Financial stability and risk disclosure Keynote address by Mr Jaime Caruana, General Manager of the BIS, to the FSB Roundtable on risk disclosure, Basel, 9 December 2011. Abstract High-quality risk disclosure is good for markets, because it helps investors make more informed decisions. It is good for prudential supervisors, because it makes banks more accountable to both supervisors and investors. And it is good for financial stability, because it reduces the chance that unexpected events will disrupt the system. To be effective in promoting market discipline, disclosure must be complemented by strong incentives for counterparties to engage in monitoring. The public sector's role in promoting transparency arises from a number of market failures, including the externalities to be gained from common standards, the "free rider" problems that may lead to too little investment in producing and gathering financial information, and the tendency of markets to overreact to bad news when the information environment is clouded. Guided by these considerations, the Financial Stability Board and the Basel Committee on Banking Supervision have long supported improvements in transparency, through their work on accounting, disclosure templates and aggregate market data. At the same time, industry and investor representatives need to play a key role in developing disclosure standards. Accounting standards need to converge, standards for the discussion and analysis that accompany financial...
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...non-continuing businesses our underlying profit1 for 2009 was $3,772 million, up 10%. Underlying revenue growth of 17% was strong while costs increased by 12%, with our underlying cost-to-income ratio at 42.2%, down from 44%. Provisions were at cyclical highs with the total credit impairment charge up 46% to $3,056 million, with increases across all regions but most pronounced in New Zealand. Importantly, ANZ maintained its AA-credit rating, one of only 11 banks remaining in the world with a AA-rating. These results were achieved at a time the global financial system and the world economy came under extraordinary pressure and they reflect the very significant efforts of our management and our staff during the year. I thank them for their contribution. Capital Management During 2009 ANZ took further steps to manage its capital position and funding programs to ensure we were strongly positioned given the difficult financial and economic conditions. In May, we undertook a fully underwritten $2.5 billion institutional share placement. In July, we completed a Share Purchase Plan for retail shareholders which saw us issue $2.2 billion of ordinary equity. Over 40% of our retail shareholders participated, making it one of the most successful Share Placement Plans undertaken by an Australian company. The new shares were issued at $14.40 compared to ANZ’s year-end share price of $24.39 representing a strong return to participating...
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...azon.co.uk “I WAKE up every single night thinking, ‘What could I have done differently? What could I have said? What should I have done.’ And I have searched myself every single night. And I come back to this: at the time I made those decisions, I made those decisions with the information that I had. I can look right at you and say, this is a pain that will stay with me for the rest of my life…” When Dick Fuld delivered these words to Congress, he was loudly berated for being insufficiently sorry for his role in the demise of Lehman Brothers—America’s biggest bankruptcy—in September 2008, a bankruptcy that triggered the near collapse of the global financial system. Yet Vicky Ward’s history of the last 25 years of the Wall Street investment bank, the final 15 under Mr Fuld’s watch, broadly supports the former chief executive’s assessment of himself. It offers no evidence of the alleged wrongdoing for which many people want to see him in court. Indeed, writes Ms Ward, a contributor to Vanity Fair magazine, “despite appearances and the endlessly self-perpetuated myth of being a mighty gorilla, Dick Fuld was never truly synonymous with Lehman.” Instead of the domineering king of the Lehman jungle, Mr Fuld was in reality merely a “lieutenant” to two more powerful leaders of the firm who technically served under him, Chris Pettit and then Joe Gregory. Well, maybe. Ms Ward’s account is engaging enough, though it suffers from the fact that both Mr Fuld and Mr Gregory refused to...
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...서울대학교 法學 제51권 제3호 2010년 9월 125∼180면 Seoul Law Journal Vol. 51 No. 3 September 2010. pp. 125∼180 글로벌 금융위기와 금융산업의 구조재편* - 금융산업의 역사와 발전전략 1) 金 和 鎭 요 약 ** 이 논문은 글로벌 금융위기 이후 진행되어 온 미국과 유럽 금융산업의 재편 동향을 정리하고 그로부터 정책적 시사점을 찾기 위한 것이다. 특히, 미국에서 투자은행업과 상업은행업을 재분리하려는 개혁 움직임이 2010년 7월에 제정된 미국의 금융규제 개혁법에 어떻게 반영되었는지를 역사적 배경과 함께 살펴보았다. 현재 국내에서 진행 되고 있는 유니버설뱅킹과 메가뱅크 논의가 미국과 유럽에서의 움직임으로부터 어떤 영향을 받을 것인지를 진단하였고 미국과 유럽의 주요 은행들의 사례를 검토하였다. 이 논문은 미국에서의 논의는 미국 특유의 정치적 상황의 부산물이므로 미국에서의 제도변화 동향에 지나치게 민감하게 반응하지 않으면서 메가뱅크 계획보다는 유니 버설뱅크 계획을 추진하는 것이 바람직하다고 결론 내린다. 이 논문은 상업은행업과 투자은행업간의 업무 경계획정 기준은 상업은행은 국가가 제공하는 안전망의 보호 하에 있기 때문에 그를 망각하지 않는 범위 내에서만 영업활동이 허락되어야 한다는 것으로 설정하자고 제안한다. 주제어: 상업은행, 투자은행, 유니버설뱅킹, 미국 금융규제개혁법, 헤지펀드 * 이 논문은 필자가 2010년 4월과 8월에 각각 한국금융투자협회에 제출한 연구보고서의 일부에 기초하였다. 이 논문에 귀중한 코멘트를 해 주신 심사위원님들께 감사드린다. ** 서울대학교 법과대학⋅법학대학원 부교수. 126 서울대학교 法學 제51권 제3호 (2010. 9.) I. 머리말 1. 문제 2008년 글로벌 금융위기 이후 새로운 국제금융질서를 모색하기 위한 범세계적인 노력이 전개되고 있다. 특히, 자본시장과 금융회사들에서 발생한 리스크가 적절히 통제되지 못하고 금융위기의 직접적인 원인이 되었으므로 이에 관한 문제의 포착과 해법의 발견에 많은 노력이 기울여지고 있다. 과도하게 복잡해지고 지나친 레버리 지를 사용한 금융상품의 거래 비중이 높아졌으나 그에 대한 각국 정부의 감독부족과 시장 투명성 확보 실패, 금융회사의 내부통제 기능 마비가 문제였음이 지적된다. 통상 서브프라임 모기지 시장의 붕괴와 파생금융상품의 과도한 판매와 유통이 금융 위기의 직접적인 원인이 되었다고 지적되나1) 글로벌 금융위기는 아직도 계속되고 있기 때문에 그 원인에 대한 본격적인 학술적인 연구는 아직 출현이 이르다. 금융 위기의 과정과 거대 금융기관들의 몰락, 구조조정을 다루는 책과 논문들이 이제 서서히 등장하고 있을 뿐이다. 아마도 이는 후세의 역사가들에게 1차 세계대전의 원인이 어디에 있었는지를 규명하는 작업처럼 어려운 과제가 될 것이다. 글로벌 금융위기의 발원지인 미국에서는 포괄적인 금융개혁이 진행되고 있으며 그 중 가장 중요한 것으로 상업은행업무와 투자은행업무를 다시 분리시키려는...
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