MULTINATIONAL
MULTINATIONALBUSINESS FINANCETHIRTEENTH EDITION
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MultinationalBusiness FinanceTHIRTEENTH EDITIONDavid K.Arthur I.Michael H.EITEMANSTONEHILLMOFFETTUniversity of California,Los AngelesOregon State Universityand the Universityof Hawaii at ManoaThunderbird Schoolof Global ManagementBoston Columbus Indianapolis New York San Francisco Upper Saddle RiverAmsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyoiii
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PrefaceAs the field of multinational financial management has evolved, so has the content of Multinational Business Finance. Both institutions and markets are changing, and as a result, this editionfocuses on the multitude of financial management challenges faced by the business leaders oftomorrow, with three points of emphasis.nnnOrganizations of all kinds. Multinational enterprises (MNEs) applies to organizationsof all kinds—publicly traded, privately held, state-run, and state-owned enterprises(SOEs)—all forms that permeate global business today.Emerging markets. Firms from all countries and all markets are looking to theeconomic drivers of the global economy today, the emerging markets. These countrymarkets present many specific risks, opportunities, and challenges for business andmultinational finance.Financial leadership. The leaders of MNEs face numerous foreign exchange andpolitical risks. These risks can be daunting; but if properly understood, they presentopportunities for creating value. These risks and opportunities are most effectivelyunderstood in the context of the global business itself, and the ability of managementto integrate the strategic and financial challenges that business faces.The success of all multinationals, however, continues to depend on their ability to recognizeand benefit from imperfections in national markets for products, production factors, and financialassets. As in previous editions, we perceive the multinational enterprise to be a unique institutionthat acts as a catalyst and facilitator of international trade, and as an important producer anddistributor in host countries where its subsidiaries are located.AudienceMultinational Business Finance, thirteenth edition, is appropriate for university-level coursesin international financial management, international business finance, international finance,and similar titles. It can be used at the undergraduate or graduate level as well as in executiveeducation courses.A prerequisite course or experience in corporate finance or financial management is ideal.However, we review the basic finance concepts before we extend them to the multinationalcase. We also review the basic concepts of international economics and international business.Over many years and many editions, as language translations and sales have expanded,we have observed a widening global audience for this book. We continue to try to service thisgreater global audience with multicountry companies and markets in theoretical applications,examples, Mini-Cases, and Global Finance in Practice features, as seen in the business andnews press (including anecdotes and illustrations).OrganizationThis edition of Multinational Business Finance is more concise, but it includes several newsubjects. We accomplished this by integrating a number of previous topics along financialmanagement threads. The book comprises six parts, unified by the common thread of thev
viPrefaceglobalization process by which a firm moves from a domestic to a multinational businessorientation.nnnnnnPart 1 introduces the global financial environment.Part 2 explains foreign exchange theory and markets.Part 3 analyzes foreign exchange rate exposure.Part 4 explores the financing of the global firm.Part 5 analyzes foreign investment decisions.Part 6 examines the management of multinational operations.New in the Thirteenth EditionAlthough we hesitate to use a common tag line, the thirteenth edition could be called thenew normal. Today, the developed or industrialized countries see slower growth, poorer jobopportunities, and a growing insecurity about their competitiveness in the global marketplace,while the rapidly expanding emerging markets and their major players represent an increasingly larger piece of the global pie.In this new world, the MNEs not only depend on the emerging markets for cheaper labor,raw materials, and outsourced manufacturing, but also they increasingly depend on those markets for sales and profits. These markets—whether they are labeled as BRICs (Brazil, Russia,India, China) or some other popular label—represent the majority of the earth’s populationand therefore consumers. These markets are also home to many of the world’s most rapidlydeveloping multinational enterprises.We have attempted to capture this evolution through a number of principles, practices,and features:nnnnWe have increased the clarity of principles and practices at the core of multinationalfinance—to accentuate the purpose behind the book’s title.We have integrated emerging market content, highlighting both the promise andchallenges of financial management in a global marketplace where the future likelyrests with these countries, cultures, and their new players.We have expanded our coverage of global financial crises to go beyond the creditcrisis of 2007–2009 to the current sovereign debt and financial crisis raging acrossEurope.We have presented 12 new Mini-Cases. The majority are inclusive of emerging market business. The Global Finance in Practice features follow the same themes.To create a shorter, succinct text for today’s more complex courses, we have merged andintegrated some concepts and chapters, and we have revised other chapters.nChapters on currency derivatives—futures, options, and swaps—have been combinedto facilitate study.nChapters on translation exposure and operating (economic) exposure have beenrevised to capture industry’s growing interest and concern about these currencybased company exposures.Chapters on the financial structures and capital sourcing strategies employedby multinational firms have been restructured and reorganized for a tighterpresentation.n
Preface viiA final note on style. The subject of international finance is sophisticated, evolving, andrich in history. We have tried to bridge the past and future by using a mix of currency notations and symbols, including both the increasingly common three-letter currency codes—USD,CNY, GBP, EUR—and the currency symbols of the past— , , , —which live on in modern media. Who knows, we may be re-introducing historical currency designations like thedrachma and lira in future editions!A Rich Array of Support MaterialsA robust package of materials for the instructor and student accompanies the text to facilitatelearning and to support teaching and testing. All instructor resources are available for download from the online catalog page for this book (www.pearsonhighered.com/irc).nnnnnInstructor’s Manual. The Online Instructor’s Manual, prepared by the authors, contains answers to Case questions and end-of-chapter questions. Excel solutions forthe end-of-chapter problems are available as well as PowerPoint teaching solutionsfor all Mini-Cases. The Instructor’s Manual is available for download as Microsoft Word files or Adobe PDF files and the solutions to the problems are available fordownload as Microsoft Excel files from the Instructor Resource Center or fromyour local sales representative.Test Bank. The Test Bank, prepared by Curtis J. Bacon of Southern Oregon University, contains more than 700 multiple choice and true/false questions. The multiplechoice questions are labeled by topic and category—recognition, conceptual, and analytical. The test bank is available for download from the Instructor Resource Center.Computerized Test Bank. The Test Bank is also available in Pearson Education’sTestGen software for Windows and Macintosh . TestGen’s graphical interfaceenables the instructor to view, edit, and add questions; transfer questions to tests;and print different forms of tests. Search-and-sort features enable the instructor tolocate questions quickly and arrange them as preferred. The Quizmaster applicationallows the instructor to administer TestGen tests over the school’s computer network.More information on TestGen software is available at http://wpslive.pearsoncmg.com/cmg instructor testgen 1/.PowerPoint Presentation. The PowerPoint presentation slides, prepared by CurtisJ. Bacon of Southern Oregon University, provide lecture outlines and selected graphics from the text for each chapter. The PowerPoint presentation is also available fordownload from the Instructor Resource Center.Companion Web Site. A dedicated Web site (www.pearsonhighered.com/eiteman) contains access to chapter exhibits, Internet exercises, and glossary flashcards.Instructors have access to spreadsheet solutions for all problems from the InstructorResource Center.International EditionsMultinational Business Finance is used throughout the world to teach students of internationalfinance. More than two-thirds of the book’s sales volume now occurs outside North America,which is distinct considering that it is used at more than 200 universities in North Americaalone. It is published in a number of foreign languages including Chinese, French, Spanish,Indonesian, Portuguese, and Ukrainian.
viiiPrefaceAcknowledgmentsWe are very thankful for the many detailed reviews and suggestions from numerous colleagues, including chapter reviews and answers to a comprehensive questionnaire by morethan 100 adopters and nonadopters. The final version of Multinational Business Financereflects most of these suggestions. The survey reviewers were anonymous; the detailedreviewers were as follows:Yong-Cheol Kim, University ofWisconsin-MilwaukeeRobert Mefford, University of San FranciscoYen-Sheng Lee, Bellevue UniversityRahul Verma, University of Houston-DowntownJohn Petersen, George Mason UniversitySpecial thanks are extended to the reviewers and survey participants of the previous editions:Otto AdlebergerEssen University, GermanyTom BrewerGeorgetown UniversityAlan AlfordNortheastern UniversityMichael BrookeUniversity of Manchester,EnglandStephen ArcherWillamette UniversityBala ArshanapalliIndiana University NorthwestHossein G. AskariGeorge Washington UniversityRobert T. AubeyUniversity of Wisconsin at MadisonDavid BabbelUniversity of PennsylvaniaRobert CornuCranfield School of Management,U.K.Roy CrumUniversity of FloridaRobert CarlsonAssumption University, ThailandSteven DawsonUniversity of Hawaii at ManoaKam C. ChanUniversity of DaytonDavid DistadUniversity of California, BerkeleyChun ChangUniversity of MinnesotaGunter DufeyUniversity of Michigan,Ann ArborSam CheeBoston University MetropolitanCollegeMark EakerDuke UniversityJames BakerKent State UniversityKevin ChengNew York UniversityRodney EldridgeGeorge Washington UniversityMorten BallingArhus School of Business, DenmarkIt-Keong ChewUniversity of KentuckyImad A. ElhahUniversity of LouisvilleArindam BandopadhyayaUniversity of Massachusetts atBostonFrederick D. S. ChoiNew York UniversityVihang ErrunzaMcGill UniversityJay ChoiTemple UniversityCheol S. EunGeorgia Tech UniversityNikolai ChuvakhinPepperdine UniversityMara FaccioUniversity of Notre DameRobert BoatlerTexas Christian UniversityMark CiechonUniversity of California, LosAngelesLarry FauverUniversity of TennesseeGordon M. BodnarJohn Hopkins UniversityJ. Markham CollinsUniversity of TulsaJoseph FinnertyUniversity of Illinois at UrbanaChampaignNancy BordUniversity of HartfordAlan N. CookBaylor UniversityWilliam R. Folks, Jr.University of South CarolinaFinbarr BradleyUniversity of Dublin, IrelandKerry CooperTexas A&M UniversityLewis FreitasUniversity of Hawaii at ManoaAri BeenhakkerUniversity of South FloridaCarl BeidlemanLehigh University
Preface Anne FremaultBoston UniversityFariborg GhadarGeorge Washington UniversityIan GiddyNew York UniversityMartin GlaumJustus-Lievig-Universitat Giessen,GermanyGordon KleinUniversity of California, LosAngelesSteven KobrinUniversity of PennsylvaniaPaul KorsvoldNorwegian School of ManagementChris KorthUniversity of South CarolinaixGregory NoronhaArizona State UniversityEdmund OutslayMichigan State UniversityLars OxelheimLund University, SwedenJacob ParkGreen Mountain CollegeYoon Shik ParkGeorge Washington UniversityDeborah GregoryUniversity of GeorgiaChuck C. Y. KwokUniversity of South CarolinaRobert GrosseThunderbirdJohn P. LajaunieNicholls State UniversityChristine HekmanGeorgia Tech UniversitySarah LaneBoston UniversityYash PuriUniversity of Massachusetts atLowellSteven HestonUniversity of MarylandMartin LaurenceWilliam Patterson CollegeR. RavichandrarnUniversity of Colorado at BoulderJames HodderUniversity of Wisconsin, MadisonEric Y. LeeFairleigh Dickinson UniversityScheherazade RehmanGeorge Washington UniversityAlfred HofflanderUniversity of California, LosAngelesDonald LessardMassachusetts Institute ofTechnologyJeff RosenlogEmory UniversityJanice JadlowOklahoma State UniversityArvind MahajanTexas A&M UniversityVeikko JaaskelainenHelsinki School of Economics andBusiness AdministrationRita Maldonado-BaerNew York UniversityBenjamas JirasakuldechUniversity of the PacificRonald A. JohnsonNortheastern UniversityJohn KallianiotisUniversity of ScrantonAnthony MatiasPalm Beach Atlantic CollegeCharles MaxwellMurray State UniversitySam McCordAuburn UniversityHarvey PoniachekNew York UniversityDavid RubinsteinUniversity of HoustonAlan RugmanOxford University, U.K.R. J. RummelUniversity of Hawaii at ManoaMehdi SalehizadehSan Diego State UniversityMichael SaltSan Jose State UniversityJeanette MedewitzUniversity of Nebraska at OmahaRoland SchmidtErasmus University, theNetherlandsRobert MeffordUniversity of San FranciscoLemma SenbetUniversity of MarylandParitash MehtaTemple UniversityAlan ShapiroUniversity of Southern CaliforniaW. Carl KesterHarvard Business SchoolAntonio MelloUniversity of Wisconsin atMadisonHany ShawkyState University of New York,AlbanySeung KimSt. Louis UniversityEloy MestreAmerican UniversityHamid ShomaliGolden Gate UniversityYong KimUniversity of CincinnatiKenneth MoonSuffolk UniversityVijay SingalVirginia Tech UniversityFred KaenUniversity of New HampshireCharles KaneBoston CollegeRobert KempUniversity of Virginia
xPrefaceSheryl Winston SmithUniversity of MinnesotaK. G. ViswanathanHofstra UniversityPayson ChaHKR International, Hong KongLuc SoenenCalifornia Polytechnic StateUniversityJoseph D. VuUniversity of Illinois, ChicagoJohn A. DeuchlerPrivate Export FundingCorporationMarjorie StanleyTexas Christian UniversityJoseph StokesUniversity of MassachusettsAmherstJahangir SultanBentley CollegeLawrence TaiLoyola Marymount UniversityKishore TandonCUNY—Bernard Baruch CollegeRussell TaussigUniversity of Hawaii at ManoaLee TavisUniversity of Notre DameSean TooheyUniversity of Western Sydney,AustraliaMahmoud WahabUniversity of HartfordMasahiro WatanabeRice UniversityMichael WilliamsUniversity of Texas at AustinBrent WilsonBrigham Young UniversityKåre DullumGudme Raaschou InvestmentBank, DenmarkStev
Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Boakes Reading and Understanding the Financial Times Brooks Financial Management: Core Concepts* Copeland/Weston/Shastri Financial Theory and Corporate Policy Dorfman/Cather
2.3.1 Home and host State responsibility 15 2.3.2 The developing role of home States and government power 17 3 REGULATION OF MULTINATIONAL CORPORATIONS 18 3.1 Self-regulation of multinational corporations 18 3.2 Corporate codes of conduct 18 3.3 Corporate Social Responsibility
supporting and enabling joint, whole-of-government, and multinational land-based operations. We must develop and advance a base technological architecture into which other military Services, U.S. government agencies, and allies and partners can easily “plug and play.” Improving the Army’s multinational force interoperability (MFI) with allies
Klaas van Wijk kv35@cornell.edu Wolfram Weckwerth wolfram.weckwerth@univie.ac.at Yang Weicai wcyang@genetics.ac.cn Viktor Zarsky viktor@natur.cuni.cz The Multinational Coordinated Arabidopsis thaliana Functional Genomics Project Annual Report 2011 The Multinational Arabidopsis Steering Committee-May 2011 Kazuo Shinozaki shinozaki@rtc.riken.go .
L1-A Visa- Senior Manager and Executive Director of Multinational Corporations L1-A visa, a non-immigration visa, is applicable to senior managers of multinational companies. L1-A allows multinational companies to send executives to the U.S for the operation of U.S subsidiaries or affiliates. The beneficiary of L1-A visa must have
of strategic actors (HR and talent leaders as system designers and business leaders as system implementers) in multinational companies (MNCs). Moreover, to contribute to the knowledge and understanding of how multinational organisations think about and define Talent Management (henceforth shortened to TM) and whether and how they perceive their .
Fundamentals of:,/ MULTINATIONAL FINANCE Edition III MICHAEL H. MOFFETT Thunderbird School of Global Management ARTHUR I. STONEHILL Oregon State University and University of Hawaii at Manoa DAVID K. EITEMAN University of California, Los Angeles Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid
PAST AND FUTURE Proceedings of the Fifth Workshop of the Partnership for Peace Consortium’s Military History Working Group Edited by Robert S. Rush and William W. Epley Multinational Operations, Alliances, and International Military Cooperation: Past and Future PIN : 082789–000 United States Army Center of Military History
2011-08-11 // U.S. Central Command J-6 Session: 5, MultiNational Information Sharing (MNIS) JWICS Stone Ghost SIPRNET SIPR REL NIPRNET NATO U UGOV LES PIX INTERNET CX-G CX-I NATO/BICES AMN CONSIDERATIONS Cross Domain Solution may not touch every country or every sys
