...Chapter 3 International Financial Markets Lecture Outline Foreign Exchange Market History of Foreign Exchange Foreign Exchange Transactions Foreign Exchange Quotations Interpreting Foreign Exchange Quotations Forward, Futures, and Options Markets International Money Market Origins and Development Money Market Interest Rates Among Countries Standardizing Global Bank Regulations International Credit Market Syndicated Loans Impact of the Credit Crisis on the Credit Market International Bond Market Eurobond Market Development of Other Bond Markets International Stock Markets Issuance of Stock in Foreign Markets Issuance of Foreign Stock in the U.S. Chapter Theme This chapter identifies and discusses the various international financial markets used by MNCs. These markets facilitate day-to-day operations of MNCs, including foreign exchange transactions, investing in foreign markets, and borrowing in foreign markets. Topics to Stimulate Class Discussion 1. Why do international financial markets exist? 2. How do banks serve international financial markets? 3. Which international financial markets are most important to a firm that consistently needs short-term funds? What about a firm that needs long-term funds? POINT/COUNTER-POINT: Should Firms That Go Public Engage in International Offerings? POINT: Yes. When a U.S. firm issues stock to the public for the first time in an initial public offering (IPO), it is naturally concerned about whether...
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...December 2012 Company registration number: 1777777 This page has been intentionally left blank Contents Officers and professional advisers 1 Business review and Directors’ report Business review Management review Financial review Internal controls and risk management Directors’ report 2 5 8 12 Directors’ responsibilities statement in relation to the financial statements 14 Independent auditors’ report 15 Group financial statements Group consolidated income statement Group statement of other comprehensive income Balance sheets Cash flow statements Statements of changes in equity Notes to the accounts Operating and financial statistics Fleet table Principal investments Glossary Subsidiary undertakings 16 17 18 19 20 21 79 80 81 82 83 British Airways Plc Officers and professional advisers Directors Sir Martin Broughton Alison Reed Keith Williams Nick Swift Andrew Crawley Frank van der Post Enrique Dupuy de Lôme Ken Smart Gavin Patterson Garrett Copeland Julia Simpson Secretary Kulbinder Dosanjh (Chairman) (Deputy Chairman) (Chief Executive Officer) (Chief Financial Officer) Registered office Waterside PO Box 365 Harmondsworth UB7 0GB Parent company International Consolidated Airlines Group S.A. Calle Velázquez 130 Madrid, 28006 Spain Independent auditors Ernst & Young LLP 1 More London Place London SE1 2AF 1 British Airways Plc Business review and Directors’ report The Directors present their annual report and the audited financial...
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...Competition Policy Newsletter Standard‑setting from a competition law perspective by Ruben Schellingerhout (1) FeAtured ArtICle Competition rules to ensure that the benefits of standards materialise Competition regulators pay attention to standard setting because legally a standard constitutes an agreement between companies. However, the Com‑ mission has always taken the view that there are also clear benefits associated with standard‑setting. As early as 1992 the Commission outlined this gen‑ eral point. (2) In its 2001 Horizontal Guidelines it therefore provided guidance on when it considered standard setting to be unproblematic. Since the adoption of the 2001 standardisation Guidelines, a number of issues have come to the fore. It became increasingly clear that malpractic‑ es were occurring in the standard setting process which could lead to serious distortions of com‑ petition. (3) In response, the Commission revised the Guidelines in 2010 to provide more guid‑ ance to standards bodies on how they could de‑ sign their rules so as to avoid restrictive effects on competition. (4) This purpose of this article is to provide the full picture on standard‑setting. It starts by outlining why competition law is concerned at all by stand‑ ards. It then covers in more detail some of the is‑ sues that have arisen. The extended guidance in the revised Guidelines is then fleshed out in more de‑ tail. Finally, some thought is given to the future of standardisation. Standards have a positive...
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...Plc Annual Report and Accounts Year ended 31 December 2011 Company registration number: 1777777 Contents Officers and professional advisers 1 Directors’ report and business review Business review Management review Financial review Internal controls and risk management Directors’ report 2 4 6 9 Directors’ responsibilities statement in relation to the financial statements 12 Independent auditors’ report 13 Group financial statements Group consolidated income statement Statement of other comprehensive Income Balance sheets Cash flow statements Statement of changes in equity Notes to the accounts Operating and financial statistics Fleet table Principal investments Glossary Subsidiary undertakings 14 15 16 17 18 19 75 77 78 79 80 British Airways Plc Officers and professional advisers Directors Sir Martin Broughton (Chairman) Alison Reed (Deputy Chairman) Keith Williams (Chief Executive Officer) Nick Swift (Chief Financial Officer) Andrew Crawley Frank van der Post Rafael Sánchez-Lozano Turmo Enrique Dupuy de Lôme Ken Smart Gavin Patterson Secretary Alan Buchanan Registered office Waterside PO Box 365 Harmondsworth UB7 0GB Parent company International Consolidated Airlines Group S.A. Calle Velazquez 130 Madrid, 28006 Spain Independent auditors Ernst & Young LLP 1 More London Place London SE1 2AF 1 British Airways Plc Directors’ report and business review The Directors present their annual report and the audited financial statements...
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...European Union − the European System of Central Banks − the European Central Bank − the Law on the Bulgarian National Bank − narrow money − М1 plus quasi money − broad money − the International Monetary Fund − Exchange Rate Mechanism II − the Federal Reserve System © The Bulgarian National Bank, 2009 © 2009 by Tsvetan Manchev et al. ISBN 978-954-8579-30-8 Published by the Bulgarian National Bank 1, Knyaz Alexander I Square 1000 Sofia telephone +359 2 9145-750 facsimile +359 2 980 2425, 980 6493 www.bnb.bg 2 International Foreign Exchange Reserves Contents Introduction ......................................................... 11 PART ONE. Chapter 1. 1. 2. 3. 4. 5. THE THEORETICAL FOUNDATIONS Nature and Function .......................................... 19 Definition ............................................................. 19 Gold as a Foreign Reserve Assets ...................... 20 Reasons to Own and Use Foreign Reserves ...... 23 The Functions of Foreign Reserves ..................... 24 Exchange Rate Policy, Monetary Policy, and Foreign Reserves ......................................... 26 6. Foreign Reserve Adequacy ................................ 31 1. 2. 3. Financial Asset Risk and Return ........................ 36 Financial Assets .................................................. 36 Types of Asset Risk...
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...Feasibility Study Milan Project Group 09 Lauran Beers Tim Denissen Joey Gillissen Carolin Quast Justine Roche Bryan Thijssen Avans School of International Studies 10th June, 2011 ------------------------------------------------- Executive Summary Oil & Vinegar is a chain of culinary gift shops that was founded in 1999 by Dutch entrepreneurs John Blogg and Femke Stevens. The concept has been praised for its unique retail formula and exclusive positioning. The brand has, since its establishment, expanded with 84 retail stores spread over twelve different countries using a master franchise business model. “Oil & Vinegar”, which is the actual and only brand of the company, offers a wide variety of products. All of them fall under one of the following categories: appetizers, herbs and spices, salads and dressings, oil and vinegar, pasta products, sweet food, biological products and gift sets. (ASIS-IBMS, General information O&V, 2011) The reason for writing this report is to research whether Oil & Vinegar is able to expand to Milan, Italy. Oil & Vinegar operates on the business-to-consumer food retail market where they are categorized as food specialists. The research will show whether the market is attractive or not. This report contains information about the four separate parts of feasibility, which are market-, product-, organizational-, and financial feasibility. From all parts together, a conclusion will be drawn...
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...Sixth Edition INTERNATIONAL FINANCIAL MANAGEMENT Cheol S. Eun Bruce G. Resnick International Financial Management Sixth Edition The McGraw-Hill/Irwin Series in Finance, Insurance, and Real Estate Stephen A. Ross Franco Modigliani Professor of Finance and Economics Sloan School of Management Massachusetts Institute of Technology Consulting Editor FINANCIAL MANAGEMENT Adair Excel Applications for Corporate Finance First Edition Block, Hirt, and Danielsen Foundations of Financial Management Fourteenth Edition Brealey, Myers, and Allen Principles of Corporate Finance Tenth Edition Brealey, Myers, and Allen Principles of Corporate Finance, Concise Second Edition Brealey, Myers, and Marcus Fundamentals of Corporate Finance Sixth Edition Brooks FinGame Online 5.0 Bruner Case Studies in Finance: Managing for Corporate Value Creation Sixth Edition Chew The New Corporate Finance: Where Theory Meets Practice Third Edition Cornett, Adair, and Nofsinger Finance: Applications and Theory First Edition Cornett, Adair, and Nofsinger Finance: M Book First Edition DeMello Cases in Finance Second Edition Grinblatt (editor) Stephen A. Ross, Mentor: Influence through Generations Grinblatt and Titman Financial Markets and Corporate Strategy Second Edition Higgins Analysis for Financial Management Ninth Edition Kellison Theory of Interest Third Edition Kester, Ruback, and Tufano Case Problems in Finance Twelfth Edition Ross, Westerfield, and Jaffe Corporate Finance Ninth Edition...
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...PERMANENT STRUCTURAL CHANGE BRINGING SUSTAINABLE RESULTS... 2009/10 Annual Report and Accounts Who we are British Airways is the UK’s largest international scheduled airline. We fly our customers at convenient times to the best located airports across the world. We are one of the world’s leading global premium airlines. Our principal place of business is London with significant presence at Heathrow, Gatwick and London City. Some 20 million people live within commuting distance of these airports, on the doorstep of the City of London, the world’s biggest premium travel market. We also operate a worldwide air cargo business, largely in conjunction with our scheduled passenger services. Operating one of the most extensive international scheduled airline route networks, together with our codeshare and franchise partners, we fly to more than 300 destinations worldwide. In 2009/10, we carried nearly 32 million passengers. We support the UK economy by providing vital arteries for trade and investment, meeting the demand for business travel and leisure travel for holidays and family reunion. In 2009/10, we earned £8 billion in revenue, down 11 per cent on the previous year. Passenger traffic accounted for 87 per cent of this revenue, while 7 per cent came from cargo and 6 per cent from other activities. We carried 760,000 tonnes of cargo to destinations in Europe, the Americas and throughout the world. At the end of March 2010 we had 238 aircraft in service. British Airways...
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...Woko k rb o: Sm lQuso s n ap e et n ad i Eece xrss i September 2012 Level I Workbook: Sample Questions and Exercises Preface.......................................................................................................................................................... 2 Sample Exam Questions ............................................................................................................................. 2 Exercises ...................................................................................................................................................... 2 Errata Sheet................................................................................................................................................. 2 The Level II Examination and Completion of the Program ................................................................... 3 Topic 1: Professional Standards and Ethics ......................................................................................... 4 Topic 2: Introduction to Alternative Investments................................................................................ 6 Topic 3: Real Assets .............................................................................................................................. 20 Topic 4: Hedge Funds ........................................................................................................................... 29 Topic 5: Commodities ...............................
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...MULTINATIONAL COST OF CAPITAL AND CAPITAL STRUCTURE LEARNING OBJECTIVES The specific objectives of this chapter are to: l explain how corporate and country characteristics influence an MNC’s cost of capital, explain why there are differences in the costs of capital among countries, and explain how corporate and country characteristics are considered by an MNC when it establishes its capital structure. l l An MNC finances its operations by using a mixture of fixed interest borrowing and equity financing that can minimize the overall cost of capital (the weighted average of its interest rate and dividend payments). By minimizing the cost of capital used to finance a given size and risk of operations, financial managers can maximize the value of the company and therefore maximize shareholder wealth. 25 26 MULTINATIONAL COST OF CAPITAL AND CAPITAL STRUCTURE BACKGROUND ON COST OF CAPITAL Apart from working capital, a firm’s capital consists of equity (retained earnings and funds obtained by issuing shares) and debt (borrowed funds). With these funds a firm invests in a portfolio of projects, each project potentially offering different risks and different returns. The interest rate that the firm applies or charges to these projects (the cost of using the firm’s capital) will therefore vary according to the project’s particular risk. Profitable investment in this context is where the firm invests in projects that achieve returns greater than that required by their risk. A project...
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...chapter 1 2 >> Fiscal Policy A BRIDGE TO PROSPERITY? I n 1998 the Japanese government though on a smaller scale. Indeed, many completed the longest suspension countries attempt to manage aggregate de- bridge in the world. The 6,500-foot mand by using discretionary fiscal policy. span linking Awaji Island to the city of Governments also adjust taxes in an at- Kobe cost $7.3 billion to build. Yet as skep- tempt to manage aggregate demand. They tics had predicted, it currently carries very may reduce taxes to try to stimulate the little traffic—about 4,000 cars a day. By economy or raise taxes when they believe comparison, America’s longest suspension that aggregate demand is too high. bridge, the Verrazano Bridge that links New In this chapter, we will learn how discre- York City’s Staten Island to the borough of tionary fiscal policy fits into the model of Brooklyn, carries more than 300,000 cars short-run fluctuations we developed in each day. Chapter 10. We’ll see how deliberate In Japan, stories like this are common. During the 1990s the Japanese government What you will learn in this chapter: changes in government spending and tax policy affect real GDP. We’ll also see how ® What fiscal policy is and why it is an important tool in managing economic fluctuations ® Which policies constitute an expansionary fiscal policy and which constitute a contractionary fiscal policy ...
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...ROBERT F. HARTLEY • Cindy Claycomb 12th Edition T W E L F T H E D I T I O N MARKETING MISTAKES AND SUCCESSES Robert F. Hartley Late of Cleveland State University Cindy Claycomb Wichita State University VICE PRESIDENT & EXECUTIVE PUBLISHER SENIOR EDITOR PROJECT EDITOR EDITORIAL ASSISTANT ASSOCIATE DIRECTOR OF MARKETING MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR PRODUCT DESIGNER SENIOR PRODUCTION MANAGER ASSOCIATE PRODUCTION MANAGER PRODUCTION EDITOR COVER DESIGNER George Hoffman Franny Kelly Brian Baker Jacqueline Hughes Amy Scholz Kelly Simmons Marissa Carroll Harry Nolan Allison Morris Janis Soo Joel Balbin Eugenia Lee Kenji Ngieng This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical...
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...Guidelines to fill in the banking statistics returns SBS-1, SBS-2 & SBS-3 (Fifth edition) STATISTICS DEPARTMENT BANGLADESH BANK July 2013 Members of the Editorial Committee Any suggestion/recommendation for improvement in the contents of this guideline would be highly appreciated. Users may kindly contact with the following persons for their suggestions/ recommendations and queries (if any): 1. Md. Nur-un-Nabi General Manager nurun.nabi@bb.org.bd 2. Md. Lutful Kabir Deputy General Manager lutful.kabir@bb.org.bd 3. Mohammad Nurul Islam Joint Director mnurul.islam@bb.org.bd i Preface to the Fifth Edition In the light of current economic activities and experiences thereof, the fifth edition of the revised directory on compilation of Banking Statistics Returns is in the process of being published. Information/data on banking sector of the country play an important role in formulating monetary policy and determining the trend of economic activities. In order to meet that end, the SBS forms which were used earlier for collection of all types of information/data from the banking sector in Bangladesh have been revised and enlarged. The Statistics Department of the Bangladesh Bank published Banking Statistics Guidelines 8 (Eight) years ago in the form of a booklet for enabling the scheduled banks to fill in the above forms properly and submitting the same to the Bangladesh Bank. In the current edition of the booklet, detailed explanatory notes of the terms have been given in...
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...PART 2 The Global Marketing Environment CHAPTER 2 The Global Economic Environment Case 2-1 The Global Economic Crisis I n his 1997 book One World, Ready or Not, William Greider described the United States as “the buyer of last resort.” Greider explained that, for many years, the United States was the only nation that was willing to absorb production surpluses exported by companies in Europe, Asia, and Latin America. Greider asked: “Who will buy the surpluses when the United States cannot?” The conventional wisdom has long held that strong spending by consumers in other nations would keep the world economy humming. However, by 2008, Greider’s question was taking on a new urgency and the conventional wisdom was being tested. An economic crisis that had its roots in lax subprime mortgage lending practices began to spread around the globe. In the United States, where the crisis began, economic misery was widespread: The housing market collapsed, real estate values plummeted, credit tightened, and job growth slowed (see Exhibit 2-1). As the price of oil passed the $100 per barrel benchmark, the average price of a gallon of gasoline rose to $4. American consumers were, indeed, less willing and less able to buy. However, the crisis was not confined to the United States alone. Consumer-goods exporters in Asia, which Exhibit 2-1: The bursting of the global real estate bubble was only one aspect of the worst recession in decades. The ripple effects from the economic...
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...World retail Banking report 2012 Contents 3 4 7 Preface Key Findings Chapter 1: 8 12 21 Unlocking Pathways to Greater Customer Loyalty Customers Express Conflicting Sentiments toward Banks The Need for a Customer Experience Index The Growth of Mobile Banking 25 Chapter 2: At a Crossroads, Retail Banks Must Identify and Prioritize Core Strengths The Ground Beneath Banks Is Shifting Traditional Tactics Are Less Effective in the Current Environment The Way Forward: Extreme Measures for Extreme Times 26 28 32 40 41 Methodology About Us Preface Capgemini and Efma are pleased to present the 2012 World Retail Banking Report. Retail banks around the world are struggling to maintain their competitiveness in the face of severe external challenges. Massive debt loads are threatening the global economy, while stringent regulations put in place as a result of the financial crisis of 2008 are staunching traditional revenue streams. Customers, still distrustful of the industry, have become increasingly accepting of nonbank alternatives, and social media is giving them an opportunity to publicly explore them. More than ever, retail banks must strive to create stronger bonds with their customers. The 2012 World Retail Banking Report addresses this imperative by establishing a new framework for identifying and measuring success in retail banking. Specifically, our Customer Experience Index (CEI) offers a mechanism for accurately taking stock of the critical...
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