Instructor Manual For

Instructor Manual For Financial Management Core Concepts 4 th Edition By Raymond Brooks

(All Chapters 1-18, 100% Original Verified, A+ Grade)

All Chapters Arranged Reverse:

18-1

This is The Original Instructor Manual For 4 th Edition, All other Files in The Market are Fake/Old/Wrong Edition. 1 / 4

575 © 2018 Pearson Education, Inc.Chapter 18 International Financial Management LEARNING OBJECTIVES (Slide 18-2)

• Understand cultural, business, and political differences in business practices.
• Calculate exchange rates, cross rates, and forward rates.
• Understand transaction exposure, operating exposure, and translation exposure.
• Apply net present value to foreign projects.

IN A NUTSHELL…

With globalization here to stay and the Internet spreading its web across most cultures and continents, financial managers and businessmen have to be well equipped with knowledge about business practices, policies, and issues related to investing and managing funds across the globe.This chapter starts out with a discussion of the cultural and political differences permeating business practices in different countries. Next, the calculation of cross and forward exchange rates is covered followed by the effects of fluctuating currencies on a firm’s transaction, operating, and translation exposures. The chapter ends with a detailed explanation of how capital budgeting is to be done in the context of foreign projects.

LECTURE OUTLINE

18.1 Managing Multinational Operations (Slides 18-3 to 18-8) The complexity of managing multinational corporations increases significantly because of differences in cultures, business practices, and political systems that they are faced with once they operate in foreign countries.Cultural Risk: Cultural risk arises from differences in customs, social norms, attitudes, assumptions, and expectations of the local society in the host country.Differences in ownership structure: Such norms include the requirement to set up joint ventures in certain countries and the requirement to increase local participation and ownership.Differences in human resource norms: Such norms include hiring and firing norms and different cultural attitudes toward women and minorities in the workplace. Also, local promotions and reward systems may not be consistent with those of the home office and would have to be altered to maintain positive relations with local employees, customers, and government officials.Religious heritage of the host country: These can often can affect the way employees dress and their holiday observances and have to be honored.Nepotism and corrupt practices in the host country: The requirement to hire relatives of government officials as a condition of doing business (Indonesia) and bribery of officials to get permits and licenses—considered to be illegal in the United States—are normal practices in many foreign countries.Intellectual property rights: Rights protected by copyrights and patents may not be honored in some foreign countries (e.g., China) and become an issue when considering doing business abroad.Although attempts are being made to alter the landscape of differences in attitudes toward intellectual property rights, e.g., 2001 treaty, much still needs to be done. 2 / 4

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