经济类课件汇集_FIN2101_Lecture12 International Financial Management

F|N2101 BUSINESS FINANCE

FIN2101 BUSINESS FINANCE II

Module 11 International financial Management

Module 11 International Financial Management

Student Activities Reading Text, Chapter 20 Text study Guide chapter 20 Study Book, Module 11 Tutorial work Tutoria/ Workbook, Self Assessment Activity 11.1 Text Study Guide, Chapter 20, All

Student Activities Reading ◼ Text, Chapter 20 ◼ Text Study Guide, Chapter 20 ◼ Study Book, Module 11 Tutorial Work ◼ Tutorial Workbook, Self Assessment Activity 11.1 ◼ Text Study Guide, Chapter 20, All

Lecture overview Foreign exchange (FOREX market Transactions in FOREX market FOREX rates and quotes EXchange rate risk Political risk International investment and financing decisions

Lecture Overview ◼ Foreign exchange (FOREX) market ◼ Transactions in FOREX market ◼ FOREX rates and quotes ◼ Exchange rate risk ◼ Political risk ◼ International investment and financing decisions

Relevance of International Finance Firms are part of and operate in a highly globalised and integrated world economy Australian-dollar denominated financial instruments are traded among a wider clientele of international investors and borrowers The profitability of Australian importers and exporters is affected by exchange rate fluctuations

Relevance of International Finance ◼ Firms are part of and operate in a highly globalised and integrated world economy. ◼ Australian-dollar denominated financial instruments are traded among a wider clientele of international investors and borrowers. ◼ The profitability of Australian importers and exporters is affected by exchange rate fluctuations

FOREX Market Where FOREX (different currencies) is(are) traded As a result of these transactions, FOREX rates between different currencies are determined for example, 1 AUD/0.5185 USD FOREX management is implemented FOREX activities are based on supply and demand

FOREX Market ◼ Where FOREX (different currencies) is (are) traded. ◼ As a result of these transactions, FOREX rates between different currencies are determined, for example, 1 AUD / 0.5185 USD. ◼ FOREX management is implemented. ◼ FOREX activities are based on supply and demand

Market Characteristics Largest financial market in the World -1.2 trillion Usd traded daily in 2001 Highly integrated Operates 24 hours a day London, New York and tokyo dominate the market activity (75%o of turnover

Market Characteristics ◼ Largest financial market in the world – 1.2 trillion USD traded daily in 2001. ◼ Highly integrated. ◼ Operates 24 hours a day. ◼ London, New York and Tokyo dominate the market activity (75% of turnover)

FOREX Market Structure TWo tiers Interbank market wholesale large transactions Retail market small scale transactions

FOREX Market Structure Two tiers: ◼ Interbank market - wholesale, large transactions ◼ Retail market - small scale transactions

Where s The market? An over-the-counter(OTC) market There is no one market place a Transactions occur in trading rooms by telephone, telex, computer, automated dealing systems Trades must be conducted by authorised dealers(80-90), licensed by the rba

Where Is The Market? ◼ An over-the-counter (OTC) market. ◼ There is no one market place. ◼ Transactions occur in trading rooms by telephone, telex, computer, automated dealing systems. ◼ Trades must be conducted by authorised dealers (80-90), licensed by the RBA

Market Participants Bank and non-bank dealers Individuals and firms exporters/importers Tourists Speculators/ arbitragers a Central banks foreX brokers

Market Participants ◼ Bank and non-bank dealers ◼ Individuals and firms - exporters/importers ◼ Tourists ◼ Speculators/arbitragers ◼ Central banks ◼ FOREX brokers