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An Overview of Multinational Financial Management. International Finance. Dr. Andrea DeMaskey. Learning Objectives. What is multinational financial management? Why do we need to study international financial management?
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An Overview of Multinational Financial Management International Finance Dr. Andrea DeMaskey
Learning Objectives • What is multinational financial management? • Why do we need to study international financial management? • How does multinational financial management differ from domestic financial management?
What is so special about International Finance? • Foreign exchange and political risk • Market imperfections • Expanded opportunity set
Goals of Multinational Financial Management • Corporate Goals • Operational Goals
Conflict and Constraints with the MNC’s Goal • Agency problem • Environmental constraints • Regulatory constraints • Ethical constraints
Basic Concepts for the Study of International Finance • Arbitrage • Market Efficiency • Capital Asset Pricing