Manajemen Keuangan

Multinasional
Alan Shapiro
8th Edition
J.Wiley & Sons

Power Points by
Joseph F. Greco, Ph.D.
California State University, Fullerton
 The Opening Statement

The exchange rate movement is unstable and will remain

so, therefore, predicting exchange rate movement is
foolish game.

You have better hedge, if you are not hedge, you are
speculate.

As professional, you can not blame the corporate losses

on the market volatility
 CHAPTER 1
Introduction:
Multinational Enterprise
and Multinational
Financial Management
 PART I.
THE RISE OF INTER-MODAL
INTERNATIONAL TRADE

A. THE REVOLUTION IN WORLD

TRADE AND FINANCE (1985)
1. Containerization
a. Containers (20’ (TEU)
and 40’)
b. Make Inter-modal
transport possible 4
This New Method of Shipping Has Revolutionized
Global Trade and Finance

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 CARGO CRUSH

7.5
NO. 1 LA
7.3

NO. 2 Long B
6.7
5.8

4.8 = 2005
NO. 3 NY/NJ
4.5 = 2004

Source: L.A. Times, C-1, 2/4/2006

- IN MILLIONS OF TWENTY FOOT CONTAINERS (TEUs) 6

 World’s Top 5 Container Ports
25
Singapore
Millions of Twenty
20 Foot Containers Hong Kong

15 Shanghai

10 Shenzhen

LA/LongBeach
5
Pusan
0
2005
Source: L.A. Times C-1, 2/22/2006

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Port of Long Beach/Los Angeles

 
                        
                                                                                               

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A Containerized Port in China

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 Containerized Shipping is
Intermodal

By rail mode By ground mode

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By air mode
A “Small” Container Ship

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 Intermodal Transport
The U.S. Land Bridge

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 The Time Length Of Global Shipping
Voyages to Hong Kong
on Hanjin
From Departure Arrival Transit Service Vessel

Long Beach Tue Sep 25 Sat Oct 13 18 days AWEPD Priwall

New York Metro Mon Sep 17 Tue Oct 16 29 days AWE Lt Genova

Oakland Tue Oct 2 Wed Oct 17 15 days PSPD1 H.J. Athens

Le Havre Thu Sep 27 Wed Oct 17 20 days CEX H.J. Savannah

Oakland Fri Oct 5 Fri Oct 19 14 days PSPD2 Portugal Senator

Le Havre Fri Sep 28 Fri Oct 19 21 days PDA H.J. Amsterdam

Long Beach Tue Oct 2 Sat Oct 20 18 days AWEPD German Senator
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 PART 1 THE RISE OF THE
MULTINATIONAL CORPORATION

I. The MNC: A Definition

– a company with production and distribution
facilities in more than one country.
– with a parent company located in the home
country
– at least five or six foreign subsidiaries
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THE RISE OF THE MULTINATIONAL
CORPORATION
The MNC’s Evolution
Reasons to Go Global:
1. More raw materials
2. New markets
3. Minimize costs of
production

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THE RISE OF THE MULTINATIONAL
CORPORATION
RAW MATERIAL SEEKERS
exploit markets in other countries
historically first to appear
modern-day counterparts
British Petroleum
Exxon

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THE RISE OF THE MULTINATIONAL
CORPORATION
MARKET SEEKERS
Produce and sell in foreign markets
Have heavy foreign direct investors
Represented today by firms such as:
IBM
MacDonald’s
Nestle
Levi Strauss

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THE RISE OF THE MULTINATIONAL
CORPORATION

COST MINIMIZERS
seek lower-cost production abroad
Their motive: to remain cost competitive
Represented today by firms such as:
Texas Instruments
Intel
Seagate Technology

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