Академический Документы
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1-1
Bohui Zhang
Education: NTU, Singapore, Ph.D. Finance; HKUST, M.Sc. Economics;
Tsinghua, B.Eng. Engineering Mechanics.
Academic experience: UNSW Australia, Professor of Finance; Tsinghua
University, Visiting Professor (2014-2015); University of Wisconsin,
Milwaukee, Visiting Professor (2011-2012)
Research interests: International capital markets (empirical asset
pricing, institutional investors, market microstructure, financial
accounting, and corporate governance)
Others: https://www.business.unsw.edu.au/our-people/bohuizhang
Phone: 9385 5834
Office: ASB 314 (west lobby)
Email: bohui.zhang@unsw.edu.au
Consultation time: Wednesday 14:00 to 15:00
Teaching: weeks 1-6
1-2
course is concerned
corporations (MNCs)
with
multinational
It
It
1-3
Brand
Name
10
1-4
Reference:
1-5
Coverage
Week
1
2
3
4
5
6
7
8
9
10
11
12
Topic
Introduction
Exchange Rate Systems
The Foreign Exchange Market
Transaction Exchange Risk and Forward Contracts
Transaction Exchange Risk and International Trade Risk
International Debt Financing and Interest Rate Parity
Purchasing Power Parity
Managing Real Exchange Risk
Exchange Rate Forecast
International Capital Budgeting
Additional Topics in International Capital Budgeting
Foreign Currency Futures and Options
Readings
Ch. 1
Ch. 5
Ch. 2
Ch. 3 & 17
Ch. 6 & 18
Ch. 6 & 11
Ch. 8
Ch. 9
Ch. 10
Ch. 15
Ch. 16
Ch. 20
1-6
Assessment
Tutorials
- Attendance
- Participation
Mid
10%
5%
5%
Session
- Week 7 Saturday morning (Sep. 10th)
- Coverage: Week 1 to 6
Group
project
Examination
- Formal exam period
- Coverage: Week 7-12
30%
25%
Final
35%
Total
100%
1-7
Mid-session Exam
It
Closed
One
book
Details
1-8
Study Tools
Stock exchanges:
ASX (http://www.asx.com.au/) SHSE (http://www.sse.com.cn/)
NYSE (https://www.nyse.com/index)
Central banks:
RBA (http://www.rba.gov.au/) PBC (http://www.pbc.gov.cn/)
FRB(http://www.federalreserve.gov/)
World map
Google (http://maps.google.com/)
Economic and financial news:
Bloomberg.com (http://www.bloomberg.com/news/)
Economist.com (http://www.economist.com/)
Research data:
WRDS (http://wrds-web.wharton.upenn.edu/wrds/)
Fama-French factors (http://mba.tuck.dartmouth.edu/pages/faculty/ken.french
/data_library.html)
NBSPRC (http://www.stats.gov.cn/) World Bank (http://data.worldbank.org/ )
Journals:
Economics: QJE, AER, JPE, RES, and Econometrica
Finance: JF, JFE, RFS
Accounting: JAR, JAE, and TAR
1-9
1. Australia
1-10
Country
GDP (Mn.)
U.S.
17,946,996
China
10,866,444
Japan
4,123,258
Germany
3,355,772
U.K.
2,848,755
France
2,421,682
India
2,073,543
Italy
1,814,763
Brazil
1,774,725
10
Canada
1,550,537
11
Korea
1,377,873
12
Australia
1,339,539
1-11
1-12
1-13
Commodity
Share (%)
Iron ores
20.2
Coal
11.6
Natural gas
5.4
Education
5.2
Personal travel
4.4
Gold
4.1
Petroleum
3.2
Beef
2.4
Aluminium
1.9
10
Wheat
1.8
Mining
Agriculture
Education
Tourism
Wealth
Management
1-14
5%
Singapore
4%
U.S.
9%
China
24%
Japan
11%
Malaysia
3%
New
Zealand
Thailand
3%
3%
UK
3%
Germany
3%
1-15
1-16
1-17
1-18
Name
Industry
Size
BHP Billiton
Mining
$72.1bn
Rio Tinto
Mining
$59.8bn
Wesfarmers
Retail
$58.4bn
Woolworths
Retail
$55.5bn
NAB
Financial
$48.5bn
Commonwealth
Financial
$47.1bn
Westpac
Financial
$42.3bn
ANZ
Financial
$40.0bn
Telstra
Telecom.
$25.6bn
10
Xstrata
Holdings
Mining
$23.1bn
1-19
Managers
Shareholders
Debt
Assets
Equity
1-20
of a MNC
Maximize shareholder wealth (US, UK, Australia)
Maximize stakeholder wealth (Europe and Asia)
Conflict
of
interest
between
shareholders
and
managers
Independent board of directors
Concentrated ownership
Executive compensation
Shareholder activism and litigation
Hostile takeovers
1-21
1-22
For
example:
Australia: mining and agricultural industries
India: IT industry
Japan/Germany: manufacturing
Saudi Arabia: oil-based industries
1-24
Four methods
Licensing: gives local firms right to manufacture their
products in exchange for fees
Brand
Profits (10%)
A local supermarket
in India
A local supermarket
in India
Profits (100%)
A new supermarket
in India
A new supermarket
in India
1-26
1-27
Political
risk
The risk that a host government will change the
rules of the game under which business is
conducted.
Due to unexpected political changes within a host
country or to the hosts relationship with other
governments.
Financial
risk
Foreign exchange risk: the risk of an unexpected
change in the value of the firm due to an unexpected
change in exchange rates
Financial crises
Cultural
culture
1-28
Example:
Political
risk
The dispute between US and Iranian governments in
1970s
Financial
Jul. 2008
Nov. 2008
Nov. 2011
risk
1A$=0.97 US$
1A$=0.61 US$
1A$=1.09 US$
Culture
risk
Does everyone around the world like Starbucks coffee?
Alcohol in Dubai?
1-29
1-30
International
Banks
e.g. BGI, Citibank, ANZ, and Commonwealth
International
Institutions
--The International Monetary Fund (IMF)
--The World Bank
--Regional development banks e.g. The Asian Development
Bank (ADB)
--The World Trade Organization (WTO)
--The Organization for Economic Cooperation and
Development (OECD)
--The Bank for International Settlements (BIS)
--The European Union (EU)
Governments
Individual
1-32
Globalization
Definition:
Implication:
1-33
1-34
WTO
members in
January
2012
Brexit
The EU is a politico-economic
UK European Union membership referendum
union of 28 European countries:
Announced on the morning of June 24, 2016
Ensure the movement of people,
Choice
Votes
%
goods, services, and capital
Maintain common policies on
Leave
17,410,742
51.89
trade, agriculture, fisheries, and
regional development
Remain
16,141,241
48.11
Enact legislation in justice
1-36
1-37
Exchange
Country
Headquarters Market
cap. (bn.)
Trading
vol. (bn.)
NYSE
U.S.
New York
19,223
1,520
NASDAQ
U.S.
New York
6,831
1,183
LSE
U.K.
London
6,187
165
TSE
Japan
Tokyo
4,485
402
SHSE
China
Shanghai
3,986
1,278
HKSE
Hong Kong
Hong Kong
3,325
155
Euronext
N.B.P.F.
A.B.L.P.
3,321
184
SZSE
China
Shenzhen
2,285
800
TMX Group
Canada
Toronto
1,939
120
10
Frankfurt
1,762
142
1-38