CHA Current Multinational Financial Challenges ‘The subjoct ofthis book then management of iostionl MNES are tins—both for profit companies and noe pot oreming ‘eperationsin more than one coun. and conduct thee ioc tee tes, ranches, or joint veatures wih host county fs MINES at tugging to surive and penpet in ery diferent world han nthe es, Todays MNEs depend not only onthe emerging marels for cheat labor iew en . alo inreningl on th ne 20th and early 21 coma wa taken ia god ing Bathe saprome rh wa ‘Nevermind the fa dat nblance 1 the bigger sk mopar i ntThe theme dominating global financial markets today isthe comple of rks soca with nancial lbalizaton—far beyond wheter tsi good ot bad. but how ead aa ‘manage mulation! rms the apy moving markerpice "The international monetary system, a eclectic mix of foting and manage xed exchange ates today, is under constant sertiny The ie of the Chinese reamin is eanging mach of the word's outlook fr cureney exchange reserve currencies, land the roles of the dll and the eur 28e Chapter 3), "Large seat defi plague most the major trading couse ofthe wor inching {erent carozone criss complain fel and notary poise, nd ley lntrest rats and exchange ates see Chapters and 3) Many counties experience continuing balance of pnyments balance, nin some aes, dangerously large dats and suples whether tbe the tin surpues ‘njoyed by China, be erent account surplus of Germany amidst sc fearon ‘eis othe coining current secon defi ofthe United Sate, lw nc {ably moe exchange rte (oe Chapers and) Ownership, contr) and governance changes radically aro the world. The pub "ade company ino the drainant soba busines ogatztion the evel ‘or family-owned busines the prevalent strtareand ther gels and messes ‘of performance dle dramatically (oe Chapter), 5 Global capital markets tha aormaly provide the means to lower firm's eos of capital, and even more ertcllyinreae the avlaity of cpital have fa many vayssirunk in siz, opeaness, and acest by enany ofthe wort oepsniations (see Chapters and 3). Todays emerging markets are confonted wth anew dla the problem of being the ceciients of too much capital sometimes, Financial globalization has eseed| inthe lw of massive quanti of capt nto ad out of mea emerging markets, complicating nancial sanagement (Caapers 6 9), ‘These ae uta sampling ofthe complet of topics, The Mini-Cas at the end ofthis haper ine Dragons Paper and the 2009 Cre Criss highlights many ofthese MNE tates emerging markets oday. As described in Global Finance in Practice 1, the global tet ‘ss ad its aftermath has damaged the Word's largest banks and ede the ate of exe nomi growth worldwide, leading to higher eae of unemployment snd ping rial ps ‘reson government bodgets tom Gress a Ian to Portugal to Metco, ‘The Global Financial Marketplace Basines—drnest, internation, global—involes the intceaction of nv ad nd vidual organizations fo the exchange of products srrces and capital teh markets The bal capital markets are eal forthe cond ofthis exchange The lob inne is ‘92008-2009 served aan istatio and a warning of how tight integrated and fe hit ‘marketplce ca be ‘Assets, Insitutions, and Linkages Exhibit 1 provides a map tothe global capital markets, One way to characterize the plobal ‘inanil marketplace through ts se, sons. td ages,habe Te treaty hee cae erp a tras om 6 rou 207 he wots enter eas prt nd abe ‘rare cponte—nonty aa #328 ee reap Goon caph hve srt sau. Th TO a a ori Yes Pea TE (enw cern co. aes =e ere aorta nfl Pods a Moe we ari eo ‘sneciafonenwarest ratio ort ean og meutmaen betes Bao Sonn tr en eae ek n ‘Signa can ave bce er = Fa elbow or pats Ow TEP onslcoraee at 20 oe hfe sues then fm the “Galant like ban Joa, corporat (OUI secant ats ae 1+ carer mtr Francia Cater ‘Assets. The asets—the final scts—which Aoi der secures sued by governments ‘ndatin for he eet nds na cites (ck) Global Capital Markets: Entering a New Era, i a scan wi to (eine cups rpepensoyers etcltuorl Fran gh ro ots 0G Wat Frcteveeresigo seco agen tint i re amt Sor ha rk oS es reer ene ne tesa ath hres ed I een at crn ovocrarmrea re Oe ca canon a theheart ofthe loa capita markets $eansy Bou), These lows oF ing, vaing and pesing of fhe fina Farce yeas, numer ofddionl scares have been cea fom the existing secures deviates, whose valve [based on marke value changes the uncerying seuss The heath and security of he flobal nani sytem relies onthe quality of hee sets, Inatiuens. The nsttutions of lob nnce ae the central banks, which create and control ‘ch cunty'smoney supply the commercial banks which take deposits and exten oars o businesses, both local an global: an the multe f other financial insittions created to trade secre and derivatives, These iniutons take many shapes sn are subject oman) Siferent reglstory frameworks Te health an security the gba nancial sytem lcs Linkages. The links Between the Sansa institutions, the asta vd oF medium for aching, tie tank petri ang ren The end xcs cece trading andthe lobal currency markets ae the largest maelsin he world, The exchange ‘of eurrendies, and he subsequent exchange ofl other eer global Via cuten. isthe lnernationa interbank network. Tis nctwork, whose planar peice isthe London Interbank (Otered Rate (LIBR), ithe core copanen ofthe global tania stem. “The movement of cept sto borders and continents forthe conduct of business has «existed many diferent forms fr thosands of years Yet sony within the past 50 ytre {hat these capital movements ve started o move wth pace ofan electron eter ia + phone call ran cml Aa it isony within the past 20 years tha th market hs ben able foreach the mst distant corners he eth at any moment the dy. Ts market basse tnexposionafimnovtve products and services he pest cae, one of which proved st ‘nth es ofthe 25-208 rss somewhat oxi t the oth ‘The Market for Currencies The price of any one county’ curency in terms of another country's currency i called & {oraiga curency exchange rate For example the exchange ate between the US. doa ($ (USD) andthe European euro (€ or EUR) maybe stated a “4868 dollar pe euro" or Slpy abbreviated ae $1.45656. This the sme exchange ate a8 when sated "EURO *=USD14345" Since mst international business activites reqie atleast one of the two pares ina business ansation to iter pay or eceiv payment ima curency, which si ferent from their cn, an understanding of exchange rates serial othe comdul a lbal bones A ick word about currency symbols. As noted, USD and EUR se often used s the symbol forthe U.S dolar and te European Unions eure. These are the computer sy bo (I90-4217 codes) sed toy onthe moras dpa networks The ld of ntrnatinal pros, and avant of dlferent abbreviations are commonly tsed Fr example, the Bish Pound sterling may be (te pound synol, GBP (Creat Brain pound), ST (Brtsh pound Sering) Se (poundstelng) or URL (United Kingdom pound) This book wiles use the Simpler common symbole § (dolar), the € (euro) the ¥ (en) tbe & (pound) but be warned and wate when reading the business pres Exchange Rate Quotations and Terminology. Eeibit 12 lists cuteny exchange rates for Thursday, January 12,2012, a woul be quoted in New York or London. The exchange rate sted stor a specie county's cureacy-for example, the Argealin peso agaist he US. dbllar—Peso 297138, the European euro Peso 95176716, and the British pound Peso {14786 The rated termed mk” ovate tithe mile average othe aes orreny waders uy currency (bid at) and sl curreney (ole rate)[ESUSIEIRIEY seston ita cna chro tos sent geeager eke aeCanon Mutnatenal rence Ging CHASTE n The US. dallas bs been the focal point of most curency ting since the 1940s, As rents mos ofthe word surences have been quoted aps the dll ~ Mesa psc pet ‘ota, Braan eal per dlr, ong Kong dolla er dla, et. This tation cnventon Isao oliowed again the word's major currence sisted in Exhibit 12. Forex, the Japenese Yen commenty quoted nx ¥8 200, ¥i08 41/6, 0 9128 04, ‘Quotation Convention. Several of the word's major curteney exchange rte, however fl low aspecie quotation convention tat teres of tradition eodhory. The exhange st Setneen th US dollar andthe euro is alway quoted us dolar per curo" (WE), $1366 listed in Exist 12 Simian, the exchange rte between the U.S dolar and ‘he Brith pound is alvays quoted a 8, for example, the $1 SOAS ited under “United Staten Eh 12 Many countries tht Were formery members ofthe Brith Commonwealth will commonly be quoted spans th Glia IS. dallas per caveny the Attain ot (Canadan dota) Eurocurrencles and LIBOR ‘One ofthe major nkagesof lob! money and capital markets is the Euscuererey market saudi intere rate known ss LIBOR.Eurocurences te domestic curence of on county tn deposit in second country. Eurdollar ime Gepost maturities ange fog all money tnd overnight funds to longer periods Ceriests of depos are sual for thee monte ot or and ip milion-dollarneements. A Burdollar epost snot demand depot act ‘reated onthe bank's books by wring lane aginst required factional reserves in ca not be aneferedby «check dawn on the bank Raving the deposit Eurodole depois ae twansferte by wire or cae tasfr ofan underyng balance bet in 9 correspoment bask Toeatod within the United Sate, In sos counties, domestic analogy would be ie enter ‘of deposits held in nonbank savings stccsaions, These ae transfered by the wsociation ‘wtng itso check on commerce bank ‘Ary convertible crrency ca exit in "Euro" frm. Noe that hit we of “Ear” should not be confused with he new common European cucosey called the euo. The Euro ‘eney market incades Euoserng (Bish pounde deposited ouside the United Kingdom) "rvocura (eurs on depen out the eurozone); Caroyen Uapanne yu deste ate Japan) and Eurdellas (US. dolar deposited ouside te United Stats). The eset ie of Ibe Eurourreney markets if to measure besus varies wth ly core ade by ‘epost abou where to hod rei transferable gud ond, ad partly cn whether to epost dla within or oats the United Sates, Eocuttency markets serve tw vluabe purposes: 1) Eorocarrency deposits at an eft ‘leat and eaneniemt money market device for holding exces corporate guid 2) the Erocurency market sa major source of short-term bank loans onan eorporte working ‘copta ned, including the iancing of inp and exports Banks in which Eurccurencies ate deposited are called Eurobonks, A Ewrbank is financial intermediary that simultaneously bide fr time depois and make oan in 8 Eurteney other than tat of the crtency in which loved. Eurobanks are major Mord banks that conduct a Eurocurreacy business in addon to all ther banking "unctions. Thus, the Esocarreny operation that quails «bank forthe name Barcbanh isin fst & department of lrg commercial bank, and he name springs fom the peeformance of thi funtion. The modern Eurocureney market was born shorty afer World War I. Eastern Euro ean holders of ola, nslading the varios tate trading banks of the Soviet Union were rid to deposit soir dolar oldng inthe United Stats besa these deposit igh be ‘ached by US, residents with clans aginst commbnist government Therefor, EsteCcawrren Cinnetnasratal Franck Calora -Focpcan odes deposited thi dls in Wester Eope, pat wih te Soviet Fore ee Nevany Hankin London, andthe Banque Comercle pour Europe an Meeps Banks edepeited the funds in oter Ween banks pel Bona in oa lor epost were received from various cena banks n Wester ero eel par ofr ol eserves hormone: il Fee ta laced tht dol blancs in the market bxause specie materies ea cdi tbe Earodlar sae. Suc companies oui inncallyodvants sa een delay esevain the her peking Erdal art, Various holders Sf aernatona fae fonds als supplied nds ee eae caae ofthe powth of the Eurourency marke re ecomom ef enna entation events during he 190s and 196s helped is growth tr 195, British monetary auborities responded 10 weakening of the pound by eT igtconolson U.K tank ning in seingtoronresiens fhe Usted iro raged bythe Bank of Eland, Ubon tarned to dt ending Tam ernst would alo them to intin heir leading poston owl nance For this they needed daar deposits 2 Aiough New York was “home base” forthe dllar anda age dome mone} Alto ee otro rain the dla cested ia Landon bees of td ap ron metry mates i Oy nie and stanee to maorcostomers alone! suport fora Buropesn-based dollar market came from the balance of ats lalue ofthe U during he 1965, which temporary segmented the US Somes capital mare, timate, however the Eurocrrency market continae 1 thrive Decnut it ee Fe nal eae fee fom governmental regulation and interference ‘Cveurrenoy intrest Rates: IBOR. Un the Eurocurreney parse the reference até of coe OW the London Intvinnk Orfered Rate, LIBOR i now the most widely ine cof restsedin standudaed uotations oan cement or Sandal dt ser DOR trolly defined by te ritnh Banker, Associaton (BBA) For a NE LIBOR & the mest of liatonal bens interbank fered oes ral Voy the BBA a Axe London imein Londen, Slay, the BA cua the See AOR cue OR aed oer corey LIBOR rts whe sae ine 9 [Landon fo semipes of ans. om rate is nt, however, confined o London. Most major domes Fee nrc theron interbank offered rts ot oral oa reemient financier BOR (Pais Interbank Offered ate), MIBOR (Mads aterbonk as aR (Singapore Intrtonk Ofleed Rats), anc FIBOR (Frank Inter- Sank Offered Rate), to mame but fe I Ofer Rae trating both depots and borrowesto the Erosureny fan mat ene tne spread win tat market. The difernc eters depos andlou> ae is trent spread inthe Eurocurency marke are sal for many sates in oft a ats cnn beenee the Eurocrrency mathe is a wholesale markt a oma aad ean are mae in mount of $9000 of more onan unsecured basi were depos ay arg conporaions or government ents tha qualify fo Tow ats aa eh stating and horaue the ansacton sz sarge. nado, overheat estat wo tht Euroeureny operation by participating banks smal. Peo etch i the Eurcarency market th 8 moe domestic cusreney marca teats ine financial institutions offering Furocurreney activities ae aot sbjet £2‘many ofthe regutions and reserve requirements imposed on trains demesticbanks and banking activites With these cons removed rates are subject to more compete preseies epost ates arehgher, and oun rate ar lower. A second majoras of Ct avcided inthe urocurrency mskes isthe paysea of dope insurance fees sch sn Federal Depost Insurance Corprstion FDICy nd assesses pal on deposits inthe Und Sats. The Theory of Comparative Advantage Thetheory of compare avenags provide bis for ean a jutijingnterationa tradename word smd oejoy fe tae, perf competion, aunty cot Ic nfrtn td no govertertnrtrnc, Ti theey sori inh work of Aa Sonith and paricny with seminal bok The Weath of None pine in 1776. Sth sought to expe way the dvson of borin productive stiles, nd subsequent iter. avon tae ose god, ress the gol a ioral itauneSith sed werk nthe concep ofabnite Gamage, where every county shoud spain he production Gfthat god was uniquely sated fo, More wouldve procure Tab each oy Spesngn prod for which t posted sb avenae, oust Could pode ore in ttl andetchange prods tadefor goods that were cheaper prc han these ‘Dad Rc, in is work On the Principles of Pde! Economy au Taxation pub Use in 117, sagt tae he basses st down by Aca Sih few lop steps further, Ricardo noted tat eve county poseted absolute advanaze in te pre: tio of wo rod, at sl Be slat more efit he the thr county none sus product an th other, Rcrdo teed thi comporav advantage Ech county Would then poss comparative advantage inthe production af on of he two product ind both counts would then benef by special completly none produ tn tra. ing or he he. ‘Althogh imation trade might have aproathe the comparative advantage model they are i etter positon than purely domestic poets trough thei own tral information network impertections a national makets for prot actors he mart for products sansa 10 mene Detter able te exploit such \Gagerat and technological experi, produet ompaior In far MNES thrive NINES have essed a physical prsenee abroad bet these factor to ently and isplement marksWhy Do Firms become Multinational? Seategimorives rive the decision to aves abreadand become an MNE- These motives an besummarzed uner the falling categories Marketscelers produce in foreign maketeitherto sty local demand orto export tomarkes other than thes home mael,U.S automo rms manvfotring a Eaope for eal consunption sre an expe of musket seeking msivaton 2 Raw material seekers extract rt materi wherever they can be found ithe for ‘export for further proven andl inne country in wich hey ae fond the host country. msi theo nine platon and fore ides al nt this cxesey 3. Production fon sekers proce countries where one or more of the ator cof produston are underpased reative tothe prot. Laborintensie produc $n of electronic components in Taiwan, Malaysia, and Mexico an exanpie of this 44 Knovledgescckers operate in foreign couse to in acces to technology of man ageial expertise. For example, German, Date, nd lapanes rmsaveporchised US located electrons ims fr tel tstooogy Pole safety seekers aequte or establish new operations in counties that ase considered uniely to exproprineorinterfe wth private enterprise. For expe Hong Kong Sms invested ew in the United States, United Kingdom, Canad nd Ausra in antipstion ofthe consequenes of Chinas 197 takeover othe Bri coony These five types of sratepe consideration are not mutual excusive. Foret products fms seeking wood Ser in Bra, for example, aya i ge Brava market fora portion of ter output Ts indusiries characterized by worlwide oligepoistie competition, each ofthe above suatepie moves shouldbe subsided into prosetve and defensive invesimens. Proscive Investments ae designed enhance the growth andprotabliy ofthe fim self Defensive investments redesigned to dry growth an profitabity tthe rm's competitors Examples ofthe later are investments that ry to preempt a market before competitors can get ea lished init or capture rw materi ares and dent them to sompeiters ‘The Giobalization Process Tridetis hypothetical U.Sased im that wil be used aa setve example tro out the bok ta demonstrate te loblzaton proce. the stractrel and manage changes {nd challenges experienced bya fin stones ts peratins fom domestic lob Global Transition I: Trident Moves from the Comestic Phase to the Intemational Trade Phase “Trident i «youn. frm that manufactres and disibates an aay of telson devices lis ial satey to develop a surnnabe compeiive advantage othe US. a et Like many other young fms iti consrine ty te mall size, competitors, and lack sss to cheap and pleniloures of etal. The top half of Exhibit 1 show Trident ia is ery domes pase Trident sess products in US. dollars to US customers and hays its mansfscturng 1 serve int rom US applets, paying US, llr The eedtworth of al suppliersLchaeren + Cuertthatond Fran Charon RIIDRIET ern te Gobaton ose £5 —a coe secgeeaseett sandbuye is etbised under domestic 1S. ratios and procedars, A poten ue for A aye ne i tht although Trent soot international 0 pabal nis operations Teen ae peta plies oe buyers maybe. This fen ie pets opus fem Fase in ine fat wantin of the globalization proces, no international tide lke Trident of oy umes Winston in Las Angeles in 1948 to ake tlecommunstions Tin we Foe ljonned tases expanced showy but stabs over he flowing Foe afeominoal technology inmesuseat in ite 5, bowever, equedhs Fee eral eauity epi inode to compete. This ned led os nti pu the po) ome Ate US-based publ ade company ox the New York Stock i den’ management sought create ave for is sharehole pec vibe and vate compstir inthe US ke. state oppor yc ms marke reach by exporting roduc atd serves fo ore oe more Nee eee Te Norh American Fee Trae Ares (NAFTA) made tide vith Mexico arta ate. Thtseznd pase of he lbaliztion pres shown te lowe raat aa Tite reopended to these lobalzation foes by importing apts rom) fal fy and making export sas v Canadian buyers, Ne define thi stags of the ‘obatraon pres the Ineraonal Trade Phase ae sporting proce an series eres the Jenn of nancial man agent ineh and above the tana requirements of the donesti only busines: Fis sree angi re mow bore hen Trent my aw need to qute res ie na pe payment in foregn curtis of py supp in fregs ire reef crtnces change trom minute omntei the aba markepee, rae a vsporeac ignticnt rks rom the changing values wsociated wih these foreign cureacy payments and rep ia cory Diution ofthe creat quality of Fregn buyer and sellers sow mors stopentthanevee Reducing the ort of n-payent for=xpors and non dlr of sma turaes ane ef ro man nail manapement ass droge nterationa UeCurent Msinatona Pri erges 80 s phase, This rei rsk management taki uch mre dif in international busines, as buyers and supplies are new, subject fo dflering busines pasties and legal stems sad generally more challenging to ses Global Transition I: The Intorational Trade Phase tothe Multinational Phase I Tridents succesful ints ntertonal tad activities, the ime wll come whea th le ization proces wil prgzss othe next phase, Trieat wllsoon peed toe foreign sles {and service ais. Tas step te followed by extn manaciring operations | road or byliensng foreign ems to produce and service Tridente procs The mule ‘of us and activites associated with this vecond larger lobe anton the real fos of | ‘hi book Triden’s continued globalization wil quiet to identi the sources ofits compete sdvantage, and with that knowledge, expand is nteletal capital and psa proses sobaly-A variety of states aernatve are avalable to Trent —theforcpnctet mere i ment sequence~as showa i Exhitit 8, These alternates ncode the ceation af org Siles oie, he easing ofthe company name and eveything ssociated wth andthe fi ‘manufacturing and dsriation of ts products to othe ira in foreign markers | ‘As Tident mows farther down ahd tothe right in Exit 1, the degree ofits phy ji presence in foreign markets increase. It may now ob ts own datibaton ad preducion facies, an ultimately, may want to acquire oer companies, Once Trident owns ees and enterpises in foreign counties thas entered the mulsnational paseo is ohazaton | | I “rer Forget ester Sequence | |“The Limits to Financial Globalization “The theres of nertonal basis and interatona re nt mal an nrensngy open and rangaret global marespar i wich ait lene ae wl inecaiagly ow and support couse ar componics ase ot 2 a ve aval ice he mctwenteth entry, aisha indeed sen the the theory of omer comes have arsed more open and comptive mars But the tec has acen ic own fa new kd int omen focal baizatin: pest a llc and seffnricment of erniraton] len Bt peretain a his proces cn be moins) 7 invent ni tid sovereign sate conine to pares he ices nr vale, er sin corpo ong growth in inanal globalization. But ese ae inion wile det ron pol agendas, which may fcease Te erin powss and Insiders Pare wea or bh then capa wil not lw inte these sovereign sates inane pe The vests the growth of nancial efleny andthe segmentation of aaron outcomes seating wine and fre. As we wl 6 trouhoU! ht Book Soe eration! lanes may indeed be neresingly routes. Lae et dlcmma sso someting of composite of what this bok x about. The eee rycts ian teory.pobal busines, pd panagemen ets and these fnamentt elem ir the prone ov the enn to fc erowin debate Net a talent cours sd cars workwid, The Min-Case the sat heb acto, Arete conto family embers this company creating Natuc for temelves or ter sarebodes? Se hepet and open ths book—wih he imple wordsofone of our colleagues Fee sen on ihe otook for iba nance and lob financial management ‘Welcome the fture Thi le a constonsura and dog ince intro ihischapiereve de Wened leadership, senshi, [EQUIERED > Ptr ctr itaaten ste eee reeves Saas , ‘Tek fend eg petro omyCarer taser Franc Change CHAPTE ” SUMMARY POINTS: Senne onan pies nhgiy wn oes cis oa, ese ine paperindy The company red pr eon re tune Pe the econo ist of 08 hi led ins 3109, NDP's he prone coum acc ayx 1iPO's Prot Waring (14 Janu 2008) _ 1 camet Motor anc aera AGRE MARSA DRAGONS PAPER FOLDING TED arc test, ‘amouncement PROF WARNING i fees a ait apne cera tres escent ros ‘hector pes tn ind A ‘Sinan mn ‘The Wastopaper Queen Cheong Yao Min. Cheung ste poered, wa he Cheeet Nce behind NDP seas Her em WAS Tea tah dca ardour eats 0 BE aan te nto ere called a tbe Untied Sate ec Th vo hi ten pled 0 ema 1 ep epereet. NDP castes hen us te a pane gods x spent ak he Fan Eaype returning hem othe oe Ul a i Cheang cameron 3 mvs fay Borers ede an cota ‘chara Soepny in Hong Kong an then Saher Me omony ter hr employer wet wnt. Herc ao aap pet ear pug 2 FAP Tir Rong an alan Chin nd sling 10 Cine og omar Pp nC was of cera poe Peja oreo sie ak nd es Te Pe Ricca wasepper cat met ened of PHS voy etc na rent spe an the United ears popes war made om wood pap wih Sessctsa ihc per (Uae Stas companies aie peenag ofp while Coes companies me ke ered paer Reizng ath eprint eee eum athe Ui Stale ant Exon He TEISeENde her ual pods o He customs PeEE ee Chang vedo te United Staesin 10 ce nate company, Amesean Chang Nar 18 poted(ACN) ee ae tit companies expt wap om ‘nc Dated Sates fo Chin, ACN stated by cobecting wosepaer om dump, then expanded i ewer 1 TEST tale tnd woseraper calles. Ms tae ted vor otra wih pm Cait ange wee euing 0 Cin emt) ACN i dundee a leading export of Tee oatedcoms th gn exporter, y volume, ok ‘AGpa rr te Usted Sates Ta ober wor, aba TERA es eipiimore of anting each ear any snr inte wel "Tne Chace econo mi reece demande or pcp ousen wat Sez pen cul roi In 185, Me, Cheng et Nine Dagon Pet Induces Comper toa china By 8h is papenmatg ma cn cea scend 20 sb we 8 208-By Jae NDE tad 22 peroard manufering machi 2 NO dain Chan tad Vitan Asst PY nn 2, sr prot ome noP's Products Serato wa xo ws itor ere ned renee ec ving he Joma fo Ske a aan won, mre IKE DP pune covered ppppertome vay faWeO's Grow Sais and Proiaity ‘sem roteSE own sanyo manftre cor yn om 10020 mono pre dae SLE ae up oto oun Bete each osin srousiny NDP pet wn cal pone om gig corny rh ot Financing Expansion a taper“ Wancpars se ate oCa (CHAPTER Cure Mutt ancl Chala (EERIE oP hare Price tending Apri 0, 2050; weeky) andreas RADIAT bi ef which half ‘ein no year Nine Dragons Paper” Moga tne, ansary 29, ip Following nw rumors of be compan’ pombe bank pe, om December 29,2008, NDP taonanced that oul diay Rnb Wain ap expend panel ere 2 clea copay estar and sarcholers thay te 200 rey 21 he paper iets Wald eound NDP abo moved giclee ‘ite $16 mono sown eter nd voted weal [in and HIS mon fs Hon ed oe “he debt restoring bad med rest for NDP culo The perl repymt one to lan faces ‘coviged NDP’ tater ta alow the db covenants ‘be oan fais ob related fr so ya In tr NDP’ cots unde he lou tin woul eet new ier spread comes mith lea csd nag In actons que the temps stent bt nt mk, not for oag NDP per caning in December 208, sted aligns opin any 208, 5 shown in Exit 5 Two eye tron Janay IS.NDP ised prot musing roan sale an ro foxes donward e Een 1 Te igs gee respanded wih anther downgrade, Fc pwrog NDP ‘eaunding notes down to BB" Roms ie spans pote ankrpiey wee wipes, PLLIELPLEPILEESD errant «seco ar By mi Febru. any vestments eres ligt teyrse ther recommendations on ND shares ‘ow apie thatthe companys shure pie Bad ove ‘ac i compu nid wah sly endored the stage and nana changes ‘toouced and implemented by manent, he sare ie raualy ron. There ere lsh! he C8 "eae enoomy nos fecoering fom th een gc ‘Sup were tasig, nd fat ded wel for NDP Swng howe Tam Mac, however the nats er tamed once sin Ina tng be by rs Caeang ND anounced ‘tne resting capex pos wi ad teen hed only hee ments tr. wea concen abou hey elec on bank barrowing nts sre cpt srctre, Whit he USES mn Cuber oft or nner and he la ton of loan eovnans sae ens ‘er poi ate or sharhlder, nr, ne Dole testers are now ing wha he corpany {angio toalte ondath mesg management {led provide a non rate Morgan Stanley, Mach 18,2008 sims ferns fr the yor would one agin ave ob ese downward (0 sein the Maree 18, 200) revionn EDK). The ger cpt execsNohrmcrotepenee ttt ne ‘cash Flow Concems Nine Dragon's ari are very eve prices of Beak eye paper and contra. Paton ctedly mir thr fen the company may ‘conti problon nadine conpany ‘rns gow bse on expan ons I hecam To cso nae conor oer NDP ropes mas ‘he ime of desing le and margin oi ii series le dot arden. Manga Sey’ a tnt over efi gue of 20 acd a © Banna NDP pinay sure of ongoing sh fon ‘ys caeings andor ntsuedty EBITDA srg Sorin stand aie by theatre operand mas dele wage pets wee de ng py lo whic followed from cnt downgrades ® Caper. NDPS masine se epson had bout ed fo dest nay, angaret l anseed QUESTIONS 2 Att Isto: andLiskages. Wich a ly * bale The ehcarig spc of NDP nn he Ss gearing. stem potty thal Sali whe ct ay ens bd 367. Chie barns a ed 3008 ‘case Questions{roe tet ts cE ten PROBLEMS Comparative Advantage ee ‘avoir cot oft oro of wie ‘Skesce Chills 8 preconn hn ‘eons? sony ‘America Industies—2010 as Soc Ameo ld one NASD. Ame yas 3000 shred Te ae operonw. (HAPTER 7 Came Nenana Franc Caen 1 Ar deduting ae in ech county, at ae taming per share in IS dla? » Whe op Anes ad um reporon of Amero comolatects- trom oud the United Ste? America’s BPS Sensitsy to Exchange Rats (@)- Astune s major polite! ase mack Bra Fes afcing te value ofthe Brian reson ‘sequel inacng sn eco een ih ‘tecounty What woul beth ington Aeris ‘soolated EPS ithe Brain ress wae fo ll Invaue to RSS, with aloe ears and ‘Setunge rate renin te ane? Amerie’ EPS Senin to Bachange (W), Asume 2 major pla et wets Bre fi afecting the aoe of he Bran rea, sxbesuently inn ao ene eon iin thscounty Wt woul be he apa on Ari ems EPS ade ote alate ve the resist RSAO08, caring before {elasarent ofthe receaton RS RON? Ameri’ Bain nthe Fall othe Dla. The le bas expend signin swing in vale ‘tnt mt ofthe were nee yee Wat would eth pact on Amin cosa sed EPS al fren arenes wee opps e208 again te US dar What woud ete amps on Ams’ soa fated BPS al oegn creases wre a epost 20% apna the US det Americ’ Earn an Gob Tada. A MNES ‘ute mae tht tal labs, Reta Toit gia of bie spon a ant the folowiag eens ering Ame oma 2 Wt ste tot amoust—in US, orm Anes pine ets i tl bse in (Wan i Amro’ floc tx ete oa anes aides ete pt {hha coe txt Crna ste ao {ngs befor tax in Germany tose to €5 00,0007 INTERNET =XERCISES {nterational Cpl Poms Paeand Pate, Njor rultmtoal epaizatons (ome of wih ae ie elon temp tak teste vem a -magntes of pal expen, Ung tee Web pags andes You may fn prepare at ag acct ising om the goon of wth, ffl geeraed in he inde counties ing isn nd rm emerging mat There sone ia dine between ep and Erman emer Sioa sternal Debt The World nd analyzes he external debt of ll cots lobay As pt oftheir anal pablo oe ‘ioral Deeopnent Ineo (WDD, they ove summa fe mgt ad short ey exer ‘ee obligations etd como ie tnt Pound own hore Go othe Wes aE The decomposinoestra de fr Bra Meno, World Economie Outlook. The Internationa, Monetary Fund (IME) replay publishes Tis tssomest a te preps forthe worl econo Choose a coury of itret and te the IME ‘sent nats frm your Gepost ‘mediate conn ropes, ‘Finacial Time: Corey Global Macromap. 3 Finan Times provide very help el ine olay ry el erence