跨国公司财务管理培训课程课件

MultinationalFinancialManagement

AlanShapiro

7thEdition

J.Wiley&Sons

PowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton1MultinationalFinancialManage

FINANCINGFOREIGNTRADECHAPTER182FINANCINGFOREIGNTRADECHAPTECHAPTEROVERVIEW:I. PAYMENTTERMSII. DOCUMENTSIII. FINANCINGTECHNIQUESIV. GOVERNMENTSOURCESOF EXPORTFINANCINGANDCREDIT INSURANCEV. COUNTERTRADE3CHAPTEROVERVIEW:3I. PAYMENTTERMSI. PAYMENTTERMS A. FivePrincipalMeans: 1. Cashinadvance 2. LetterofCredit 3. Drafts 4. Consignment 5. OpenAccount4I. PAYMENTTERMSI. PAYMENTTERPAYMENTTERMS B. CashinAdvance 1. Minimalrisktoexporter 2. Usedwherethereis a. Politicalunrest b. Goodsmadetoorder c. Newunfamiliarcustomer5PAYMENTTERMS B. CashinAdvanPAYMENTTERMS C. LetterofCredit(L/C) 1. Aletteraddressedtoseller a. writtenandsignedby buyer’sbank b. promisingtohonorseller’s drafts. c. Banksubstitutesitsown commitment d. Sellermustconformto terms6PAYMENTTERMS C. LetterofCrePAYMENTTERMS 2. AdvantagesofanL/CtoExporter a. eliminatescreditrisk b. reducesdefaultrisk c. paymentcertainty d. prepaymentriskprotection e. financingsource7PAYMENTTERMS 2. AdvantagesofPAYMENTTERMS 3. AdvantagesofL/CtoImporter a. shipmentassured b. documentsinspected c. mayallowbettersalesterms d. relativelylow-costfinancing e. easycashrecoveryif discrepancies 8PAYMENTTERMS 3. AdvantagesofPAYMENTTERMS 4. TypesofL/Cs a. documentary b. non-documentary c. revocable d. irrevocable e. confirmed f. transferable9PAYMENTTERMS 4. TypesofL/CsPAYMENTTERMSD. DRAFTS 1. Definition: -unconditionalorderinwriting -exporter’sorderforimporter topay -atonce(sightdraft)or -infuture(timedraft)10PAYMENTTERMSD. DRAFTS10PAYMENTTERMS 2. ThreeFunctionsofDrafts a. clearevidenceoffinancialobliga- tion b. reducedfinancingcosts c. providesnegotiableanduncondi- tionalfinancialinstrument (ie.Maybeconvertedtoa banker’sacceptance)11PAYMENTTERMS 2. ThreeFunctioPAYMENTTERMS 3. TypesofDrafts a. sight b. time c. clean(nodocumentsneeded) d. documentary12PAYMENTTERMS 3. TypesofDrafPAYMENTTERMSE. CONSIGNMENT 1. Exporter=theconsignor 2. Importer=theconsignee 3. Consigneeattemptstosell goodstoathirdparty;keeps someprofit,remitsrestto consignor. 4. Use:Betweenaffiliates13PAYMENTTERMSE. CONSIGNMENT13PAYMENTTERMSF. OPENACCOUNT 1. Createsacreditsale 2. Toimporter’sadvantage 3. Morepopularlatelybecause a. majorsurgeinglobaltrade b. creditinformationimproved c. moreglobalfamiliaritywith exporting.14PAYMENTTERMSF. OPENACCOUNT14PAYMENTTERMS 4. BenefitsofOpenAccounts: a. greaterflexibilityinmaking atrade b. lowertransactionscosts 5. Majordisadvantage: highlyvulnerabletogovernment currencycontrols.15PAYMENTTERMS 4. BenefitsofII. DOCUMENTSII. DOCUMENTSUSEDININT’LTRADE A. Fourmostuseddocuments 1.BillofLading(most important) 2.CommercialInvoice 3.InsuranceCertificate

16II. DOCUMENTSII. DOCUMENTSUSEDOCUMENTS B. BillofLading Threefunctions: 1. Actsasacontracttocarry thegoods. 2. Actsasashipper’sreceipt 3. Establishesownershipover goodsifnegotiabletype.17DOCUMENTS B. BillofLading17DOCUMENTS 2. TypeofBills a. Straight b. Order c. On-board d. Received-for-shipment e. Clean f. Foul18DOCUMENTS 2. TypeofBills18DOCUMENTSC. COMMERCIALINVOICE Purpose: 1. Listsfulldetailsofgoods shipped 2. Namesofimporter/exportergiven 3. Identifiespaymentterms 4. Listchargesfortransportand insurance.19DOCUMENTSC. COMMERCIALINVOICEDOCUMENTSD. INSURANCE 1. TwoCategories: a. Marine:transportbysea b. Air:transportbyair 2. InsuranceCertificate issuedtoshowproofof insurance 3. Allshipmentsinsuredtoday.20DOCUMENTSD. INSURANCE20DOCUMENTSE. CONSULARINVOICE Localconsulateinhostcountry issues:avisafortheexporter’sinvoicerequiresfeetobepaidtoconsulate21DOCUMENTSE. CONSULARINVOICE21III. FINANCINGTECHNIQUESIII. FINANCINGTECHNIQUES A. FourTypes: 1. Bankers’Acceptances a.Creation:draftsaccepted b.Terms:Payableat maturitytoholder

22III. FINANCINGTECHNIQUESIII. FINANCINGTECHNIQUES 2. Discounting a. Convertsexporters’draftsto cashminusinteresttomaturity and commissions. b. Lowcostfinancingwithfewfees c. Maybewith(exporterstillliable) orwithoutrecourse(banktakes liabilityfornonpayment).23FINANCINGTECHNIQUES 2. DiscouFINANCINGTECHNIQUES 3. Factoring -firmssellaccountsreceivabletoanotherfirm knownasthefactor. a. Discountchargedbyfactor b. Non-recoursebasis:Factor assumesallpaymentrisk. c. Whenused: 1.) Occasionalexporting 2.) Clientsgeographically dispersed.24FINANCINGTECHNIQUES 3. FactorFINANCINGTECHNIQUES 4. Forfaiting a. Definition: discountingatafixedrate withoutrecourseofmedium-term accountsreceivabledenominated inafullyconvertiblecurrency. b. Use:Largecapitalpurchases c. MostpopularinW.Europe25FINANCINGTECHNIQUES 4. ForfaiIV. GOVERNMENTSOURCESOFEXPORTFINANCINGIV. GOVERNMENTSOURCESOF EXPORT FINANCINGANDCREDIT INSURANCE

A. Export-ImportBankoftheU.S. -knownasEx-ImBank -financesandfacilitatesU.S. exportsonly.26IV. GOVERNMENTSOURCESOFEXPOGOVERNMENTSOURCESOFEXPORTFINANCING 1. Ex-ImBankPrograms: a. Directloanstoexporters b. Intermediateloansto exporters c. Loanguarantees d. Preliminarycommitments e. Politicalandcommercial insurance 27GOVERNMENTSOURCESOFEXPORTFGOVERNMENTSOURCESOFEXPORTFINANCINGB. PrivateExportFundingCorporation (PEFCO) 1. Financeslargesalesfromprivate sources 2. MaypurchaseloansofU.S. importers 3. ExImBankprovidesloan guarantees.28GOVERNMENTSOURCESOFEXPORTFGOVERNMENTSOURCESOFEXPORTFINANCINGC. ForeignCreditInsuranceAssociation (FCIA) 1. Offerscommercialandpolitical riskinsurance 2. Wheninsured,exporteroften abletoobtainfinancingfaster.29GOVERNMENTSOURCESOFEXPORTFV. COUNTERTRADEV. COUNTERTRADE A. ThreeSpecificForms: 1. Barter directexchangeinkind 2. Counterpurchase sale/purchaseofunrelated goodsbutwithcurrencies 3. Buyback repaymentoforiginal purchasethroughsaleofa relatedproduct.

30V. COUNTERTRADEV. COUNTERTRADECOUNTERTRADE B. WhentoUseCountertrade 1. With“soft-currency”developing countries 2. Whenforeigncontractormust perform.31COUNTERTRADE B. WhentoUseCoMultinationalFinancialManagement

AlanShapiro

7thEdition

J.Wiley&Sons

PowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton32MultinationalFinancialManage

FINANCINGFOREIGNTRADECHAPTER1833FINANCINGFOREIGNTRADECHAPTECHAPTEROVERVIEW:I. PAYMENTTERMSII. DOCUMENTSIII. FINANCINGTECHNIQUESIV. GOVERNMENTSOURCESOF EXPORTFINANCINGANDCREDIT INSURANCEV. COUNTERTRADE34CHAPTEROVERVIEW:3I. PAYMENTTERMSI. PAYMENTTERMS A. FivePrincipalMeans: 1. Cashinadvance 2. LetterofCredit 3. Drafts 4. Consignment 5. OpenAccount35I. PAYMENTTERMSI. PAYMENTTERPAYMENTTERMS B. CashinAdvance 1. Minimalrisktoexporter 2. Usedwherethereis a. Politicalunrest b. Goodsmadetoorder c. Newunfamiliarcustomer36PAYMENTTERMS B. CashinAdvanPAYMENTTERMS C. LetterofCredit(L/C) 1. Aletteraddressedtoseller a. writtenandsignedby buyer’sbank b. promisingtohonorseller’s drafts. c. Banksubstitutesitsown commitment d. Sellermustconformto terms37PAYMENTTERMS C. LetterofCrePAYMENTTERMS 2. AdvantagesofanL/CtoExporter a. eliminatescreditrisk b. reducesdefaultrisk c. paymentcertainty d. prepaymentriskprotection e. financingsource38PAYMENTTERMS 2. AdvantagesofPAYMENTTERMS 3. AdvantagesofL/CtoImporter a. shipmentassured b. documentsinspected c. mayallowbettersalesterms d. relativelylow-costfinancing e. easycashrecoveryif discrepancies 39PAYMENTTERMS 3. AdvantagesofPAYMENTTERMS 4. TypesofL/Cs a. documentary b. non-documentary c. revocable d. irrevocable e. confirmed f. transferable40PAYMENTTERMS 4. TypesofL/CsPAYMENTTERMSD. DRAFTS 1. Definition: -unconditionalorderinwriting -exporter’sorderforimporter topay -atonce(sightdraft)or -infuture(timedraft)41PAYMENTTERMSD. DRAFTS10PAYMENTTERMS 2. ThreeFunctionsofDrafts a. clearevidenceoffinancialobliga- tion b. reducedfinancingcosts c. providesnegotiableanduncondi- tionalfinancialinstrument (ie.Maybeconvertedtoa banker’sacceptance)42PAYMENTTERMS 2. ThreeFunctioPAYMENTTERMS 3. TypesofDrafts a. sight b. time c. clean(nodocumentsneeded) d. documentary43PAYMENTTERMS 3. TypesofDrafPAYMENTTERMSE. CONSIGNMENT 1. Exporter=theconsignor 2. Importer=theconsignee 3. Consigneeattemptstosell goodstoathirdparty;keeps someprofit,remitsrestto consignor. 4. Use:Betweenaffiliates44PAYMENTTERMSE. CONSIGNMENT13PAYMENTTERMSF. OPENACCOUNT 1. Createsacreditsale 2. Toimporter’sadvantage 3. Morepopularlatelybecause a. majorsurgeinglobaltrade b. creditinformationimproved c. moreglobalfamiliaritywith exporting.45PAYMENTTERMSF. OPENACCOUNT14PAYMENTTERMS 4. BenefitsofOpenAccounts: a. greaterflexibilityinmaking atrade b. lowertransactionscosts 5. Majordisadvantage: highlyvulnerabletogovernment currencycontrols.46PAYMENTTERMS 4. BenefitsofII. DOCUMENTSII. DOCUMENTSUSEDININT’LTRADE A. Fourmostuseddocuments 1.BillofLading(most important) 2.CommercialInvoice 3.InsuranceCertificate

47II. DOCUMENTSII. DOCUMENTSUSEDOCUMENTS B. BillofLading Threefunctions: 1. Actsasacontracttocarry thegoods. 2. Actsasashipper’sreceipt 3. Establishesownershipover goodsifnegotiabletype.48DOCUMENTS B. BillofLading17DOCUMENTS 2. TypeofBills a. Straight b. Order c. On-board d. Received-for-shipment e. Clean f. Foul49DOCUMENTS 2. TypeofBills18DOCUMENTSC. COMMERCIALINVOICE Purpose: 1. Listsfulldetailsofgoods shipped 2. Namesofimporter/exportergiven 3. Identifiespaymentterms 4. Listchargesfortransportand insurance.50DOCUMENTSC. COMMERCIALINVOICEDOCUMENTSD. INSURANCE 1. TwoCategories: a. Marine:transportbysea b. Air:transportbyair 2. InsuranceCertificate issuedtoshowproofof insurance 3. Allshipmentsinsuredtoday.51DOCUMENTSD. INSURANCE20DOCUMENTSE. CONSULARINVOICE Localconsulateinhostcountry issues:avisafortheexporter’sinvoicerequiresfeetobepaidtoconsulate52DOCUMENTSE. CONSULARINVOICE21III. FINANCINGTECHNIQUESIII. FINANCINGTECHNIQUES A. FourTypes: 1. Bankers’Acceptances a.Creation:draftsaccepted b.Terms:Payableat maturitytoholder

53III. FINANCINGTECHNIQUESIII. FINANCINGTECHNIQUES 2. Discounting a. Convertsexporters’draftsto cashminusinteresttomaturity and commissions. b. Lowcostfinancingwithfewfees c. Maybewith(exporterstillliable) orwithoutrecourse(banktakes liabilityfornonpayment).54FINANCINGTECHNIQUES 2. DiscouFINANCINGTECHNIQUES 3. Factoring -firmssellaccountsreceivabletoanotherfirm knownasthefactor. a. Discountchargedbyfactor b. Non-recoursebasis:Factor assumesallpaymentrisk. c. Whenused: 1.) Occasionalexporting 2.) Clientsgeographically dispersed.55FINANCINGTECHNIQUES 3. FactorFINANCINGTECHNIQUES 4. Forfaiting a. Definition: discountingatafixedrate withoutrecourseofmedium-term accountsreceivabledenominated inafullyconvertiblecurrency. b. Use:Largecapitalpurchases c. MostpopularinW.Europe56FINANCINGTECHNIQUES 4. ForfaiIV. GOVERNMENTSOURCESOFEXPORTFINANCINGIV. GOVERNMENTSOURCESOF EXPORT FINANCINGANDCREDIT INS