Current Multinational Financial Challenges and the Global Economy: Learning Objectives Examine the requirements for the creation of value Consider the basic theory, comparative advantage, and its requirements for the explanation and justification for international trade and commerce Discover what is different about international financial management
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Current Multinational Financial Challenges and the Global Economy: Learning Objectives Detail which market imperfections give rise to the multinational enterprise Consider how globalization process moves a business from domestic focus to financial relationships and composition global in scope Examine possible causes to the limitations to globalization in finance
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Global Finance in Practice 1.1 Global Capital Markets: Entering a New Era
Global capital markets expanded from 1980 2007 to quadruple the size of global GDP The 2008 financial crises reduced the value of global financial assets by $16 trillion Looking ahead financial assets are expected to grow more inline with GDP, government debt will increase, and GDP will rise faster in emerging market countries
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Linkages the interbank networks that provide the actual medium for exchange e.g. LIBOR
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Second, the evaluation of the credit quality of foreign buyers and sellers is now more important than ever; this is known as credit risk management
Potential for non-payment of exports and non-delivery of imports Differences in business and legal systems and practices
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