ch09(2) - 9-1Butler / Multinational FinanceChapter 9...

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Unformatted text preview: 9-1Butler / Multinational FinanceChapter 9 Multinational Treasury ManagementLearning objectivesSetting financial goals and strategiesManaging operations– Managing international trade– Financing international trade– Managing the firm’s cash flowsCurrency risk management– Currency exposures and forward hedges– Implementing a risk management policyChapter 9Chapter 9Multinational Treasury ManagementMultinational Treasury Management9-2Butler / Multinational FinanceChapter 9 Multinational Treasury ManagementFunctions of the modern treasuryTreasury serves as a corporate bank-Determine the firm’s overall financial goals-Manage the risksof domestic and international transactions-Arrange financingfor domestic and international trade-Consolidate and manage financial flows-Identify, measure, and manage riskexposures✓Financial goals and the corporate treasuryManaging operationsCurrency risk managementFunctions of the modern treasury ✓Setting financial goals & strategies9-3Butler / Multinational FinanceChapter 9 Multinational Treasury ManagementSetting financial goals & strategiesIdentify the firm’s core competenciesand potential growth opportunitiesEvaluate the business environmentwithin which the firm operatesFormulate a strategicplanfor achieving sustainable competitive advantagesDevelop processesfor implementing the strategic business plan✓Financial goals and the corporate treasuryManaging operationsCurrency risk managementFunctions of the modern treasurySetting financial goals & strategies ✓9-4Butler / Multinational FinanceChapter 9 Multinational Treasury ManagementThe problems of international tradeExporters must assure timely paymentImporters must assure timely delivery of quality goodsGeographic and cultural distances are greater than in domestic tradeTrade disputes span several legal jurisdictionsFinancial goals and the corporate treasury✓Managing operationsCurrency risk managementManaging international trade ✓Financing international tradeManaging the firm’s cash flows9-5Butler / Multinational FinanceChapter 9 Multinational Treasury ManagementIf something can go wrong, it will.“Murphy’s Law” applies to international businessFinancial goals and the corporate treasury✓Managing operationsCurrency risk managementManaging international trade ✓Financing international tradeManaging the firm’s cash flows9-6Butler / Multinational FinanceChapter 9 Multinational Treasury ManagementManaging the risks of international shipmentsTrade documentationreduces exposures to operating and financial risks- Commercial invoice- Packing list- Certificate of origin- Export declaration - Export license- Bill of lading- Dock receipt- Warehouse receipt- Insurance certificate- Inspection certificateFreight forwarders (shippers)can coordinate the logistics of tradeFinancial goals and the corporate treasury✓Managing operationsCurrency risk managementManaging international trade ✓Financing international tradeManaging the firm’s cash flows9-7...
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This note was uploaded on 07/07/2011 for the course FINS 5516 taught by Professor Dl during the Three '11 term at South Australia.

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ch09(2) - 9-1Butler / Multinational FinanceChapter 9...

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