Global corporate finance - Kim
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WEB RESOURCES AND INTERNET EXERCISES |
533 |
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www.euronext.com
The website of Euronext NV, which is the world’s first cross-border exchange business. It provides services for cash markets in Belgium, France, the Netherlands, and Portugal, and for derivatives in the UK.
www.biz.yahoo.com/ifc
The website of Yahoo Finance gives country economic profiles, news, and exchange rates from all over the world.
Internet exercises
1Visit www.adr.com and then click on “market overview” to review the stock performance of ADRs of different countries. The website provides a table that shows information about countries that have issued ADRs and returns every 6 months or per year. Click on any particular country of interest to review the performance of individual ADRs from that country.
2Visit biz.yahoo.com/funds/, click on “top performers” to review the performance of top mutual funds, and then conduct a comparative analysis of performance for international mutual funds and purely domestic portfolios.
Chapter 17: Corporate Strategy and Foreign Direct Investment
Internet resources
www.unctad.org/statistics
The website of the United Nations Conference on Trade and Development (UNCTAD). UNCTAD compiles statistics that are relevant for the analysis of international trade, foreign direct investment, commodities, and development.
www.euromoney.com/index.html
The Euromoney website is the most authoritative source of detailed, yet concise, information on the trends and developments in international banking and the capital markets.
www.globaledge.msu.edu/ibrd/ibrd.asp
The website of Michigan State University’s Global Edge is a knowledge web portal that connects international business professionals worldwide to a wealth of information, insights, and learning resources on global business activities.
www.bea.doc.gov/bea/di/home/directinv.htm
The website of the Bureau of Economic Analysis (BEA), an agency of the US Department of Commerce, provides details of US direct investment abroad and foreign direct investment in the USA.
www.worldbank.org
The website of the World Bank. The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) provide low-interest loans, interest-free credit, and grants to developing countries.
534 WEB RESOURCES AND INTERNET EXERCISES
www.oecd.org
The website of the Organization for Economic Cooperation and Development provides details on foreign direct investment flows (inwards and outwards) for most OECD member countries and the eurozone.
www.ebrd.org
The website of the European Bank for Reconstruction and Development (EBRD). EBRD promotes co-financing and foreign direct investment.
www.opic.gov
The website of the Overseas Private Investment Corporation (OPIC), whose support makes it possible for US businesses – particularly small businesses – to grow through investment in the world’s emerging markets.
Internet exercises
1Visit www.export.gov/comm_svc, click on “market of the month”, and then check the investment climate in this particular country. List the factors that make the country so favorable for foreign direct investment.
2Visit www.unctad.org/statistics. Check the top 10 developing countries whose economies the FDI hosts. What factors do you think account for these countries being large recipients of US FDI?
Chapter 18: International Capital Budgeting Decisions
Internet resources
www.biz.yahoo.com/ifc
The Yahoo Finance website gives country economic profiles, news, and exchange rates from all over the world.
www.tax.kpmg.net
The website of KPMG Consulting, global provider of assurance, tax and legal, and financial advisory services.
www.export.gov/cs
The website of the US Commercial Service offers valuable assistance to help businesses export goods and services to markets worldwide.
www.odci.gov/cia/publications/factbook/index.html
The web page of the Central Intelligence Agency and the Director of Central Intelligence.
www.globaledge.msu.edu/ibrd/ibrd.asp
The website of Michigan State University’s Global Edge is a knowledge web portal that connects international business professionals worldwide to a wealth of information, insights, and learning resources on global business activities.
WEB RESOURCES AND INTERNET EXERCISES |
535 |
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www.bloomberg.com
The website of Bloomberg, provider of breaking financial, business, and economic news worldwide.
www.economist.com/countries
This web page of The Economist provides articles, background profiles, forecasts and statistics, market and currency updates, newswires, and links on 60 countries.
www.ebrd.org
The home page of the European Bank for Reconstruction and Development (EBRD), which is the largest single investor in central and eastern Europe and the CIS, and mobilizes significant foreign direct investment beyond its own financing.
www.worldbank.org/guarantees
The home page of the World Bank. The Bank’s fundamental objective in offering guarantees is to mobilize private capital for financial investment in infrastructure sectors of developing countries.
www.cofacerating.com
This website provides the first worldwide company rating system.
www.political-risk.net
This site contains information on political risk assessment by both country and industry sector.
Internet exercises
1Go to www.cofacerating.com and choose one country from each of the following areas: Africa, South America, Asia, Europe, and the Middle East. Study the risk assessments of these five countries and list the types of operating strategies you will adopt to cope with these political risks.
2Visit www.globaledge.msu.edu/ibrd/ibrd.asp, click on “country insights,” and then select five countries and compare five statistical indicators. What do the comparisons indicate?
Chapter 19: The Cost of Capital for Foreign Projects
Internet resources
www.moodys.com
The website of Moody’s Investor Service is among the world’s most respected, widely utilized sources for credit ratings, research, and risk analysis.
www.bradynet.com
The website of Brady Network is the pioneer and leading provider of emerging markets’ fixed income information through the Internet.
www.emgmkts.com
The website of Emerging Markets is the financial source for global investors.
WEB RESOURCES AND INTERNET EXERCISES |
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www.pwcglobal.com
The website of Pricewaterhouse Coopers Global. Pricewaterhouse Coopers provides industryfocused assurance, tax, and advisory services for public and private clients.
www.sec.gov/rules/concept/34-42430.htm
This website provides details of international accounting standards released by the US Securities and Exchange Commission.
www.iasc.org.uk
The website of the International Accounting Standards Board (IASC). The IASC is an independent, privately funded accounting standards-setter, based in London.
www.tpmba.com
The website of the Transfer Pricing Management Benchmarking Association (TPMBA). TPMBA is an association that conducts benchmarking studies to identify the best transfer pricing processes that will improve the overall operations of the members.
www.taxup.com
The Taxup website provides a global web directory of tax and accounting information.
www.taxsites.com
The website of Tax and Accounting Sites. Taxsites is a comprehensive index of web-based tax and accounting resources.
www.ifac.org
The website of the International Federation of Accountants (IFAC). IFAC is the global organization for the accounting profession.
Internet exercises
1Use www.prctaxman.com.cn/asian.htm to study and compare the tax systems of two Asian countries of your choice.
2Visit www.tpmba.com to list the objectives of the Transfer Pricing Management Benchmarking Association (TPMBA).
Answers to Selected End-of-Chapter Problems
Chapter 2
11 food = 3 clothing.
21 food = 4 clothing.
3The USA in food, and Taiwan in clothing.
Chapter 3
1b A balance-of-payments deficit of $10,000. 2a A balance-of-payments surplus of $2,000.
3Service trade balance = -$19,000.
4Reserve account balance = $500.
Chapter 5
1Swiss franc–yen cross rate = 0.0137 yen per franc. Yen–Swiss franc cross rate = 72.9610 francs per yen.
2a Percentage change (peso) = -9%.
2b Percentage change (peso) = 11%.
33.03%.
4Canadian dollar: -1.0%. Swiss franc: 5.7%.
6Pound future spot rate = $2.095. 7a ¥129.63 per dollar.
7b |
Undervalued. |
8a |
Premium = 16%. |
ANSWERS TO SELECTED END-OF-CHAPTER PROBLEMS |
541 |
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4c $615 million.
5a Exchange rate = 2.20.
5b Either direct loan or credit swap.
5c Credit swap.
5d Exchange rate = 2.095238.
Chapter 11
2a |
$400. |
2b |
$400. |
2d |
$2,000. |
2f |
$38,000. |
3 |
$108. |
4a |
$386. |
4b |
$463. |
4c |
$322. |
5 |
$30. |
Chapter 12
1Total external debt to GNP = 0.42. Total external debt to exports = 1.14. Debt service ratio = 0.21.
Interest service ratio = 0.09.
2Total external debt = $50 billion; exports = $45 billion; debt service = $5 billion; interest service = $2.73 billion.
3a A compound growth rate of 7.5% per year.
3b A simple growth rate of 16.8% per year.
4a A compound growth rate of 25.5% per year.
4b A simple growth rate of 55.6% per year.
Chapter 13
1a (i) 36.73%; (ii) 37.50%; (iii) 111.34%; (iv) 12.24%.
1b (i) March 20, $490; (ii) March 30, $3,360; (iii) April 10, $1,455; (iv) March 20, $4,312. 2a $19,600.
2b $18,600.
2c Hold the bankers’ acceptance until maturity.
3a $7,623.
3b 16.06%.