原版MKXZ國際商務流程講座.pp30

Financial Management in the International BusinessChapter 20
Introduction
Scope of financial management includes three sets of related decisions:
Investment decisions, decisions about what activities to finance.
Financing decisions, decisions about how to finance those activities.
Money management decisions, decisions about how to manage the firm’s financial resources most efficiently.
Investment Decisions
Capital budgeting:
quantifies the benefits, costs and risks of an investment.
Managers can reasonably compare different investment alternatives within and across countries.
Complicated process:
Must distinguish between cash flows to project and those to parent.
Political and economic risk can change the value of a foreign investment.
Connection between cash flows to parent and the source of financing must be recognized.

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