Global corporate finance - Kim
.pdf
SIXTH EDITION
GLOBAL
CORPORATE
FINANCE
SukKimandSeungH.Kim
Global Corporate Finance
World Value of the Dollar
The table below, based on foreign-exchange quotations from Reuters, gives the rates of exchange for the US dollar against various currencies as of Friday, July 9, 2004. Unless otherwise noted, all rates listed are middle rates of interbank bid and asked quotes, and are expressed in foreign currency units per one US dollar.
|
Value |
Value |
|
Value |
Value |
|
Value |
Value |
Country (Currency) |
07/09 |
07/02 |
Country (Currency) |
07/09 |
07/02 |
Country (Currency) |
07/09 |
07/02 |
Albania (Lek) |
100.850 |
100.300 |
Gambia (Dalasi) |
29.7500 |
29.7500 |
(Kina) |
3.1109 |
3.1090 |
Algeria (Dinar) |
71.0100 |
71.0100 |
Ghana (Cedi) |
9,027.5 |
9,025.0 |
Paraguay (Guarani) d |
5,920.0 |
5,920.0 |
Angola (New Kwanza) |
83.9911 |
83.7239 |
Gibraltar (Pound) |
0.6269 |
0.6269 |
Peru (Nuevo Sol) d |
3.4507 |
3.4686 |
Angola |
|
|
Greenland |
|
|
Philippines (Peso) |
55.8036 |
55.8659 |
(Readj Kwanza) |
83.9911 |
83.7239 |
(Danish Krone) |
5.9905 |
6.0347 |
Pitcairn Island |
|
|
Antigua |
|
|
Grenada |
|
|
(NZ $) |
1.5200 |
1.5444 |
(East Caribbean $) |
2.6700 |
2.6700 |
(East Caribbean $) |
2.6700 |
2.6700 |
Poland (Zloty) o |
3.6460 |
3.6750 |
Argentina (Peso) |
2.9499 |
2.9464 |
Guadeloupe (Franc) |
7.4330 |
7.4330 |
Puerto Rico (US $) |
1.0000 |
1.0000 |
Armenia (Dram) |
531.25 |
533.25 |
Guam (US $) |
1.0000 |
1.0000 |
Qatar (Rial) |
3.6398 |
3.6399 |
Aruba (Florin) |
1.7900 |
1.7900 |
Guatemala (Quetzal) |
7.8950 |
7.8850 |
Réunion, Ile de la |
|
|
Australia (Dollar) |
1.3835 |
1.4021 |
Guinea Bissau |
|
|
(Franc) |
7.4330 |
7.4330 |
Azerbaijan (Manat) |
4,920.0 |
4,915.0 |
(CFA Franc) |
528.63 |
532.93 |
Romania (Leu) |
32,943.0 |
32,964.0 |
Bahamas (Dollar) |
1.0000 |
1.0000 |
Guinea Rep. (Franc) |
2,055.0 |
2,055.0 |
Russia (Ruble) m, b |
29.1121 |
29.0107 |
Bahrain (Dinar) |
0.3770 |
0.3770 |
Guyana (Dollar) |
179.000 |
179.000 |
Rwanda (Franc) |
563.25 |
562.75 |
Bangladesh (Taka) |
59.1500 |
59.2500 |
Halti (Gourde) |
33.1070 |
32.5000 |
Saint Christopher |
|
|
Barbados (Dollar) |
1.9900 |
1.9900 |
Honduras Rep. |
|
|
(East Caribbean $) |
2.6700 |
2.6700 |
Belarus (Ruble) |
2,165.5 |
2,163.0 |
(Lempira) |
18.2200 |
18.2100 |
Saint Helena (Pound) |
0.6269 |
0.6269 |
Belize (Dollar) |
1.9700 |
1.9700 |
Hong Kong (Dollar) |
7.8003 |
7.8003 |
Saint Lucia |
|
|
Benin (CFA Franc) |
528.63 |
532.93 |
Hungary (Forint) |
203.335 |
203.542 |
(East Caribbean $) |
2.6700 |
2.6700 |
Bermuda (Dollar) |
1.0000 |
1.0000 |
Iceland (Krona) |
70.9900 |
72.1000 |
Saint Pierre (Franc) |
7.4330 |
7.4330 |
Bhutan (Ngultrum) |
47.6250 |
47.6250 |
India (Rupee) m |
45.6204 |
45.7038 |
Saint Vincent |
|
|
Bolivia |
|
|
Indonesia (Rupiah) |
8,896.8 |
9,132.4 |
(East Caribbean $) |
2.6700 |
2.6700 |
(Boliviano) f |
7.9298 |
7.9385 |
Iran (Rial) o |
8,656.0 |
8,645.0 |
Samoa, American |
|
|
Bosnia & Herzeg. |
|
|
Israel (Shekel) |
4.4823 |
4.4723 |
(US $) |
1.0000 |
1.0000 |
(Convertible Mark) |
1.5828 |
1.6113 |
Ivory Coast |
|
|
Samoa, Western |
|
|
Botswana (Pula) |
4.5403 |
4.5883 |
(CFA Franc) |
528.63 |
532.93 |
(Tala) |
2.8063 |
2.7540 |
Bouvet Island |
|
|
Jamaica (Dollar) o |
60.8100 |
60.7200 |
Sã Tomé and Principe |
|
|
(Krone) |
6.8192 |
6.9052 |
Japan (Yen) |
108.331 |
108.366 |
(Dobra) |
8,700.0 |
8,700.0 |
Brazil (Real) |
3.0423 |
3.0386 |
Jordan (Dinar) |
0.7090 |
0.7090 |
Saudi Arabia (Riyal) |
3.7509 |
3.7495 |
Brunei (Dollar) |
1.7040 |
1.7155 |
Kazakhstan (Tenge) |
135.300 |
135.850 |
Senegal (CFA Franc) |
528.63 |
532.93 |
Bulgaria (Lev) |
1.5755 |
1.5874 |
Kenya (Shilling) |
79.7000 |
79.4500 |
Seychelles (Rupee) |
5.1800 |
5.1800 |
Burkina Faso |
|
|
Kiribati |
|
|
Sierra Leone (Leone) |
2,455.0 |
2,455.0 |
(CFA Franc) |
528.63 |
532.93 |
(Australia $) |
1.3836 |
1.4022 |
Singapore (Dollar) |
1.7021 |
1.7114 |
Burundi (Franc) |
1,075.3 |
1,075.5 |
Korea, North (Won) |
2.2000 |
2.2000 |
Slovakia (Koruna) |
32.1440 |
32.2997 |
Cambodia (Riel) |
3,990.0 |
3,990.0 |
Korea, South (Won) |
1,149.4 |
1,154.5 |
Slovenia (Tolar) |
193.230 |
194.690 |
Cameroon (CFA Franc) |
528.63 |
532.93 |
Kuwait (Dinar) |
0.2948 |
0.2948 |
Solomon Islands |
|
|
Canada (Dollar) |
1.3184 |
1.3242 |
Laos, People DR |
|
|
(Dollar) |
7.2697 |
7.4375 |
Cape Verde Isl |
|
|
(Kip) |
7,882.0 |
7,882.0 |
Somalia (Shilling) d |
2,620.0 |
2,620.0 |
(Escudo) |
108.950 |
108.950 |
Latvia (Lat) |
0.5341 |
0.5371 |
South Africa |
|
|
Cayman Islands |
|
|
Lebanon (Pound) |
1,509.0 |
1,514.0 |
(Rand) c |
6.0864 |
6.1162 |
(Dollar) |
0.8200 |
0.8200 |
Lesotho (Maloti) |
6.1000 |
6.1510 |
Sri Lanka (Rupee) |
102.780 |
102.350 |
Central African Rep. |
|
|
Liberia (US $) |
1.0000 |
1.0000 |
Sudan (Dinar) c |
259.540 |
259.540 |
(CFA Franc) |
528.63 |
532.93 |
Libya (Dinar) |
1.3233 |
1.3233 |
Sudan Rep. (Pound) |
2,595.4 |
2,595.4 |
Chad (CFA Franc) |
528.63 |
532.93 |
Liechtenstein |
|
|
Suriname (Guilder) |
2,515.0 |
2,515.0 |
Chile (Peso) |
634.92 |
630.12 |
(Swiss Franc) |
1.2234 |
1.2327 |
Swaziland |
|
|
China (Yuan) |
8.2781 |
8.2781 |
Lithuania (Lita) |
2.7815 |
2.8027 |
(Lilangeni) |
6.1510 |
6.1510 |
Colombia (Peso) o |
2,668.8 |
2,670.2 |
Macau (Pataca) |
8.0066 |
8.0066 |
Sweden (Krona) |
7.4074 |
7.4571 |
Comoros (Franc) |
454.327 |
454.327 |
Macedonia (Denar) |
49.8200 |
51.5400 |
Switzerland (Franc) |
1.2235 |
1.2326 |
Congo Dem. Rep. |
|
|
Madagascar DR |
|
|
Syria (Pound) |
48.5200 |
50.2170 |
(CFA Franc) |
528.63 |
532.93 |
(Malagasy Franc) |
9,508.0 |
9,305.0 |
Taiwan (Dollar) o |
33.5345 |
33.5458 |
Congo, People Rep. |
|
|
Malawi (Kwacha) |
108.750 |
108.550 |
Tanzania (Shilling) |
1,100.0 |
1,107.0 |
(CFA Franc) |
528.63 |
532.93 |
Malaysia (Ringgit) e |
3.8000 |
3.8000 |
Thailand (Baht) |
40.7332 |
40.6669 |
Costa Rica (Colon) |
438.770 |
438.000 |
Maldives (Rufiyaa) |
12.8000 |
12.8000 |
Togo, Rep. |
|
|
Croatia (Kuna) |
5.9379 |
5.9805 |
Mali Rep. (CFA Franc) |
528.63 |
532.93 |
(CFA Franc) |
528.63 |
532.93 |
Cuba (Peso) |
1.0000 |
1.0000 |
Malta (Lira) |
0.3437 |
0.3465 |
Tonga Islands |
|
|
Cyprus (Pound) |
0.4688 |
0.4718 |
Martinique (Franc) |
7.4330 |
7.4330 |
(Pa’anga) |
1.9608 |
1.9863 |
Czech. Republic |
|
|
Mauritania (Ouguiya) |
254.250 |
254.400 |
Trinidad & Tobago |
|
|
(Koruna) |
25.3743 |
25.8131 |
Mauritius (Rupee) |
28.2400 |
28.2100 |
(Dollar) |
6.1500 |
6.1500 |
Denmark (Krone) |
5.9916 |
6.0350 |
Mexico (Peso) |
11.4903 |
11.4482 |
Tunisia (Dinar) |
1.2432 |
1.2473 |
Djibouti (Franc) |
175.000 |
175.000 |
Moldova (Leu) |
11.8500 |
11.8550 |
Turkey (Lira) h |
1,449,275.4 |
1,449,275.4 |
Dominica |
|
|
Mongolia (Tugrik) m |
1,180.0 |
1,174.0 |
Turks & Cakos |
|
|
(East Caribbean $) |
2.6700 |
2.6700 |
Montserrat |
|
|
(US $) |
1.0000 |
1.0000 |
Dominican Rep. (Peso) |
43.5000 |
45.0940 |
(East Caribbean $) |
2.6700 |
2.6700 |
Uganda (Shilling) |
1,741.5 |
1,761.5 |
Ecuador (US $) g |
1.0000 |
1.0000 |
Morocco (Dirham) |
8.8756 |
8.9315 |
Ukraine (Hryvnia) |
5.3183 |
5.3190 |
Egypt (Pound) |
6.2364 |
6.2201 |
Mozambique (Metical) |
22,650.0 |
22,628.5 |
United Arab Emir. |
|
|
El Salvador |
|
|
Myanmar (Kyat) |
6.4200 |
6.4200 |
(Dirham) |
3.6730 |
3.6730 |
(Colon) d |
8.7520 |
8.7520 |
Namibia (Dollar) |
6.0500 |
6.1900 |
United Kingdom |
|
|
Equatorial Guinea |
|
|
Nauru Island |
|
|
(Pound Sterling) |
0.5378 |
0.5454 |
(CFA Franc) |
528.63 |
532.93 |
(Australia $) |
1.3836 |
1.4022 |
Uruguay (Peso) m |
29.4118 |
29.5858 |
Estonia (Kroon) |
12.6050 |
12.7063 |
Nepal (Rupee) |
72.0000 |
72.0000 |
Vanuatu (Vatu) |
113.220 |
115.000 |
Ethiopia (Birr) o |
8.5800 |
8.6795 |
Netherlands Antilles |
|
|
Venezuela |
|
|
European Union |
|
|
(Guilder) |
1.7800 |
1.7800 |
(Bolivar) d |
1,919.4 |
1,919.4 |
(Euro) |
0.8057 |
0.8116 |
New Zealand (Dollar) |
1.5200 |
1.5444 |
Vietnam (Dong) o |
15,721.0 |
15,734.0 |
Faeroe Islands |
|
|
Nicaragua |
|
|
Virgin Islands |
|
|
(Danish Krone) |
5.9905 |
6.0347 |
(Cordoba Oro) |
15.8400 |
15.8300 |
(US $) |
1.0000 |
1.0000 |
Falkland Islands |
|
|
Nigeria (Naira) m |
134.550 |
133.300 |
Yemen (Rial) a |
184.520 |
184.520 |
(Pound) |
0.6269 |
0.6269 |
Norway (Krone) |
6.8213 |
6.9061 |
Yugoslavia |
|
|
Fiji (Dollar) |
1.7449 |
1.7715 |
Oman (Sul Rial) |
0.3850 |
0.3850 |
(New Dinar) |
58.6293 |
58.9989 |
French Guiana |
|
|
Pakistan (Rupee) |
58.2072 |
58.3431 |
Zambia (Kwacha) |
4,780.0 |
4,763.0 |
(Franc) |
7.4330 |
7.4330 |
Panama (Balboa) |
1.0000 |
1.0000 |
Zimbabwe (Dollar) |
5,350.9 |
5,338.8 |
Gabon (CFA Franc) |
528.63 |
532.93 |
Papua New Guinea |
|
|
|
|
|
*US $ per national currency unit. a, Parallel; b, Russian Central Bank rate; c, commercial; d, free market; e, government rate; f, financial; h, floating rate as of 2/22/01; m, market; o, official.
Source: The Wall Street Journal, July 12, 2004, p. C13.
S I X T H E D I T I O N
G L O B A L
C O R P O R A T E F I N A N C E
t e x t a n d c a s e s
Suk H. Kim
University of Detroit Mercy
and
Seung H. Kim
St. Louis University
© 2006 by Suk H. Kim and Seung H. Kim
BLACKWELL PUBLISHING
350 Main Street, Malden, MA 02148-5020, USA
9600 Garsington Road, Oxford OX4 2DQ, UK
550 Swanston Street, Carlton, Victoria 3053, Australia
The right of Suk H. Kim and Seung H. Kim to be identified as the Authors of this Work has been asserted in accordance with the UK Copyright, Designs, and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher.
This edition published 2006 by Blackwell Publishing Ltd
1 2006
Library of Congress Cataloging-in-Publication Data
Kim, Suk H.
Global corporate finance : text and cases / Suk H. Kim, Seung H. Kim.—6th ed.
p.cm.
Includes bibliographical references and index.
ISBN-13: |
978-1-4051-1990-0 (hardcover : alk. paper) |
||
ISBN-10: |
1-4051-1990-X |
(hardcover : alk. paper) 1. International business enterprises—Finance. |
|
2. International finance. 3. |
International business enterprises—Finance—Case studies. I. Kim, Seung Hee. |
||
II. Title. |
|
|
|
HG4027.5.K557 |
2006 |
|
|
658.15¢99—dc22 |
|
|
|
|
|
|
2005022069 |
A catalogue record for this title is available from the British Library.
Set in 10 on 12 pt Adobe Garamond
by SNP Best-set Typesetter Ltd, Hong Kong Printed and bound in the United Kindom by TJ International, Padstow, Cornwall
The publisher’s policy is to use permanent paper from mills that operate a sustainable forestry policy, and which has been manufactured from pulp processed using acid-free and elementary chlorine-free practices. Furthermore, the publisher ensures that the text paper and cover board used have met acceptable environmental accreditation standards.
For further information on
Blackwell Publishing, visit our website:
www.blackwellpublishing.com
Contents
List of Figures |
xii |
List of Tables |
xv |
Preface and Acknowledgments |
xviii |
About the Authors |
xxvii |
Part I: The Global Financial Environment |
1 |
|
Chapter 1: Introduction |
3 |
|
Opening Case 1: TIAA-CREF Goes Global with Corporate Governance |
3 |
|
1.1 |
Reasons to Study International Finance |
5 |
1.2 |
Company Goals and Functions of Financial Management |
8 |
1.3 |
Multinational Companies and their Performance |
10 |
1.4 |
Principles of Global Finance |
14 |
1.5 |
Agency Theory and Corporate Governance |
18 |
1.6 |
Environmental Differences |
21 |
1.7 |
The Structure of this Book |
23 |
Summary |
23 |
|
Questions |
24 |
|
References |
24 |
|
Case Problem 1: What Is a National Company? |
25 |
|
Chapter 2: Motives for World Trade and Foreign Investment |
28 |
|
Opening Case 2: The Effect of Foreign Investment on Exports |
28 |
|
2.1 |
Motives for Foreign Trade |
29 |
2.2 |
Economic Integration |
38 |
vi |
CONTENTS |
|
|
|
|
|
|
|
2.3 |
Motives for Foreign Investment |
43 |
|
2.4 |
A Synthesis of Foreign Trade and Investment Theories |
46 |
|
Summary |
47 |
|
|
Questions |
47 |
|
|
Problems |
48 |
|
|
References |
49 |
|
|
Case Problem 2: The Fruits of Free Trade Under the World Trade Organization |
49 |
|
Chapter 3: The Balance of Payments |
54 |
|
Opening Case 3: Opportunity Cost and Comparative Advantage |
54 |
|
3.1 |
An Overview of the Balance of Payments |
55 |
3.2 |
Balance-of-Payments Accounts |
57 |
3.3 |
The Actual Balance of Payments |
63 |
3.4 |
How to Reduce a Trade Deficit |
70 |
Summary |
72 |
|
Questions |
72 |
|
Problems |
73 |
|
References |
73 |
|
Case Problem 3: USA–China Trade Relations |
74 |
|
Chapter 4: The International Monetary System |
78 |
|
Opening Case 4: The Euro – A Story of Change |
78 |
|
4.1 |
A Successful Foreign-Exchange System |
81 |
4.2 |
A Brief History of the International Monetary System |
87 |
4.3 |
The International Monetary Fund |
94 |
4.4 |
The European Monetary Union |
98 |
4.5 |
Proposals for Further International Monetary Reform |
102 |
Summary |
104 |
|
Questions |
105 |
|
References |
105 |
|
Case Problem 4: The Mexican Peso Crisis of December 1994 |
106 |
|
Part II: Corporate Foreign-Exchange Risk Management |
111 |
|
Chapter 5: The Foreign-Exchange Market and Parity Conditions |
113 |
|
Opening Case 5: The Volume of Foreign-Exchange Trading |
113 |
|
5.1 |
Major Participants in the Exchange Market |
115 |
5.2 |
Spot Exchange Quotation: The Spot Exchange Rate |
120 |
5.3 |
Forward Exchange Quotation: The Forward Exchange Rate |
125 |
5.4 |
International Parity Conditions |
128 |
5.5 |
Arbitrages |
136 |
CONTENTS vii
Summary |
142 |
Questions |
142 |
Problems |
143 |
References |
145 |
Case Problem 5: The Big Mac Hamburger Standard: February 2003 |
146 |
Chapter 6: Currency Futures and Options |
148 |
|
Opening Case 6: Derivatives Risks |
148 |
|
6.1 |
The Currency Futures Market |
150 |
6.2 |
The Currency Options Market |
157 |
6.3 |
Futures Options |
169 |
Summary |
170 |
|
Questions |
171 |
|
Problems |
171 |
|
References |
173 |
|
Case Problem 6: Merck’s Use of Currency Options |
174 |
|
Chapter 7: Financial Swaps |
177 |
|
Opening Case 7: Why have Gillette and GE Chosen a Higher Cost of Funding? |
177 |
|
7.1 |
The Emergence of the Swap Market |
179 |
7.2 |
Plain Vanilla Swaps |
183 |
7.3 |
Motivations for Swaps |
187 |
Summary |
191 |
|
Questions |
192 |
|
Problems |
192 |
|
References |
193 |
|
Case Problem 7: Regulations of Derivatives Markets |
193 |
|
Chapter 8: Exchange Rate Forecasting |
196 |
|
Opening Case 8: Mundell Wins Nobel Prize in Economics |
196 |
|
8.1 |
Measuring Exchange Rate Changes |
197 |
8.2 |
The Forecasting Needs of the Multinational Company |
199 |
8.3 |
Forecasting Floating Exchange Rates |
201 |
8.4 |
Forecasting Fixed Exchange Rates |
210 |
Summary |
216 |
|
Questions |
216 |
|
Problems |
217 |
|
References |
218 |
|
Case Problem 8: General Motors Operations in Mexico, and the Peso Crisis |
218 |
|
Chapter 9: Managing Transaction Exposure and Economic Exposure |
221 |
|
Opening Case 9: Avon’s Actions to Protect Against Volatile Currencies |
221 |
|
9.1 |
The Basic Nature of Foreign-Exchange Exposures |
222 |
viii |
CONTENTS |
|
|
|
|
|
|
|
9.2 |
Transaction Exposure Management |
226 |
|
9.3 |
Economic Exposure Management |
233 |
|
9.4 |
Currency Exposure Management Practices |
235 |
|
Summary |
238 |
|
|
Questions |
238 |
|
|
Problems |
239 |
|
|
References |
241 |
|
|
Case Problem 9: Western Mining’s Economic Exposure Management |
241 |
|
Chapter 10: Translation Exposure Management |
243 |
|
Opening Case 10: Main Features of Accounting Exposure |
243 |
|
10.1 |
Translation Rules |
244 |
10.2 |
FASBs 8 and 52 |
247 |
10.3 |
Hedging Translation Exposure |
251 |
Summary |
252 |
|
Questions |
253 |
|
Problems |
254 |
|
References |
256 |
|
Case Problem 10: Dell Mercosur |
256 |
|
Part III: The Global Financing Strategy |
261 |
|
Chapter 11: International Financial Markets |
263 |
|
Opening Case 11: Foreign Investors Load Up with Asia’s Shares |
263 |
|
11.1 |
Eurocurrency Markets |
264 |
11.2 |
The Eurocurrency Interbank Market |
269 |
11.3 |
The Asian Currency Market |
274 |
11.4 |
The International Bond Market |
276 |
11.5 |
The International Equity Market |
281 |
11.6 |
Long-Term Capital Flows to Developing Countries |
285 |
Summary |
286 |
|
Questions |
287 |
|
Problems |
288 |
|
References |
289 |
|
Case Problem 11: The Rise and Fall of the US Stock Market |
290 |
|
Chapter 12: International Banking Issues and Country Risk Analysis |
293 |
|
Opening Case 12: Argentina’s Currency Crisis |
293 |
|
12.1 |
International Banking Operations |
295 |
12.2 |
International Loans |
298 |
12.3 |
Country Risk Analysis |
309 |
CONTENTS ix
Summary |
314 |
Questions |
314 |
Problems |
314 |
References |
315 |
Case Problem 12: The World Bank |
316 |
Chapter 13: Financing Foreign Trade |
319 |
|
Opening Case 13: US Export–Import Bank Seeks Private Investors |
319 |
|
13.1 |
Basic Documents in Foreign Trade |
320 |
13.2 |
The Payment Terms of Export Transactions |
326 |
13.3 |
Sources of Financing Foreign Trade |
333 |
Summary |
339 |
|
Questions |
340 |
|
Problems |
341 |
|
References |
342 |
|
Case Problem 13: Arms Dealers Get Creative with Offsets |
342 |
|
Chapter 14: Financing Foreign Investment |
345 |
|
Opening Case 14: Failed US–Vietnamese Joint Ventures |
345 |
|
14.1 |
Internal Sources of Funds |
346 |
14.2 |
External Sources of Funds |
349 |
14.3 |
Development Banks |
357 |
Summary |
362 |
|
Questions |
363 |
|
Problems |
363 |
|
References |
364 |
|
Case Problem 14: IBM’s Strategic Alliances |
364 |
|
Part IV: Global Investment Strategy |
367 |
|
Chapter 15: International Working Capital Management |
369 |
|
Opening Case 15: An Efficient Global Treasury Structure |
369 |
|
15.1 |
The Basic Concepts of Working Capital Management |
370 |
15.2 |
Cash Management |
382 |
15.3 |
Accounts Receivable Management |
388 |
15.4 |
Inventory Management |
389 |
Summary |
392 |
|
Questions |
393 |
|
Problems |
393 |
|
References |
395 |
|
Case Problem 15: Navistar International’s Netting System |
395 |
|
Chapter 16: International Portfolio Investment |
398 |
|
Opening Case 16: LE Group Shows how Korea Inc. Might Restructure |
398 |
|
16.1 |
Key Terminology |
400 |