Mind Map Chapter 13: Direct Foreign Investment

Revenue –Related Motives

Motives for Direct
Foreign Investment

Insentives to Cost-Related Motives

Encourage DFI

Diversification
Analysis of
Host Government Direct Foreign Benefits of International International Projects
Barriers to DFI Views of DFI Investment Diversification

Government Diversification Among

Imposed Conditions Countries
to Engage in DFI
Decisions Subsequent
to DFI
Mind Map Chapter 14: Multinational Capital Budgeting

Tax Differentials

Risk-Adjusted Variation in Tax Subsidiary versus Parent

Discount Rate Restricted
Laws among Perspective Remittances
Countries

Excessive Remitances

Adjusting Multinational Capital

Sensitivity Project Budgeting Exchange Rate Movements
Analysis Assesment for
Risk
Summary of Factors

Simulation Input for

Factors to Consider in Multinational
Capital Budgeting Multinational
Multinational Capital Capital Budgeting
Budgeting Example
Mind Map Chapter 15: International Acquisitions

Call Option on Real

Assets
Background on
International Target-Specific
Acquisitions Factors
Restructuring Decisions
as Real Options

Put Option on Real Factors That Affect in Country-Specific

Assets International Expected Cash Flows of Factors
Acquisitions the Foreign Target

Other Types of International

International Multinational Screening Process
Partial Restructuring
Why Valuations of a
Acquisitions Target May Vary among
Mnc's Example of The
Valuation Process
Estimating The
International Target Value
Acquisitions of
Privatized Business International
Divestitures

Changes in
International Alliances Valuation over
Time
Mind Map Chapter 16: Country Risk Analysis

Reducing Exposure to Host Why Country Risk

Government Takeovers Analysis is Important
Political Risk
Factors

Incorporating Country
Risk in Capital Budgeting
Financial Risks
Factors
Actual Country Risk Ratings
across Countries Country Risk Macroassesment of
Analysis Country Risk
Types of Country Risk
Comparing Risk Ratings Assesment
among Countries

Techniques to Asses Microassesment of

Country Risk Country Risk
Measuring Country
Risk

Checklist Combination of
Approach Techniques

Inspections
Delphi Technique Quantitative Visits
Analysis
Mind Map Chapter 17: Multinational Cost of Capital and Capital Structure

Background on Country Differences

Local versus Global Cost of Capital Cost of Capital in the Cost of Debt
Target Capital Structure for MNCs

Country Differences
in the Cost of Equity
Multinational Cost of Costs of Capital
Capital and Capital across Countries
Interaction between
Subsidiary and Parent Structure Combining the
Financing Decisions Costs of Debt and
Equity
Using the Cost of
Capital for Assessing
The MNC's Capital Estimating the
Foreign Projects
Structure Decision Costsof Debt and
Equity

Influence of Influence of Revising the

Corporate Country Capital Structure in
Characteristics Characteristics Response to
Changing
Conditions
 Mind Map Chapter 18: Long-Term Financing

Sources of Equity

Long-Term
Financing
Interest Rate Risk Decisison Source of Debt
from Debt
Offsetting Cash Financing
Inflows Long-Term
Financing
Measuring the
Cost of Debt Cost of Financing
Financing
Forward Contracts
Reducing Exchange
Rate Risk Assessing the
Exchange Rate Risk of Actual Effects of
Debt Financing
Exchange Rate
Movements on
Currency Swaps Financing Costs

Use of Exchange Use of Simulation

Parallel Loans Rate Probabilities

Diversifying
among
Currencies