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Multinational Financial Management: Opportunities and Challenges
Multinational Financial Management: Opportunities and Challenges
Multinational
Financial
Management:
Opportunities and
Challenges
The Multinational Enterprise
(MNE)
• Have operations in more than one country
• Include for profit, non-profit firms, and NGOs
• Reliance on emerging markets for…
• New world markets:
– BRICs (Brazil, Russia, India, and China)
– BIITS (Brazil, India, Indonesia, Turkey, and South
Africa)
– MINTs (Mexico, Indonesia, Nigeria, and Turkey)
• Eurocurrencies
– Eurocurrencies are domestic currencies of one country on
deposit in a second country
– Any convertible (exchangeable) currency can exist in
“Euro-” form (do not confuse this term with the European
Euro)
– Eurocurrency markets serve two valuable purposes
• Money market device for excess corporate liquidity
• Source of short-term bank loans