ACCAspace
Provided by
ACCA Research Institute
ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com
, P4 Chapter 7 Content
1 Multinational companies&international trading
2 Investment appraisal for international projects
3 Forecasting foreign exchange rates
4 The impact of taxation, inter company cf
and remittance restrictions
5 NPV analysis for foreign projects
6 Analysis of comprehensive example
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2
, 1.Multinational companies and international
trading
A multinational company is defined as one that generates at least
25%of its sales from activities in countries other than its own.
The economic environment
for multionationals
Management of international Strategic business planning
trade and finance for multinationals
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 3
, 1.Multinational companies and international
trading
International trading
Practical reasons for international trading
• Choice- The diversity of goods available in a domestic economy is
increased through the import of goods that could be uneconomic or
impossible to produce at home
• Competition-International trade will increase compeition in domestic
markets, which is likely to lead to both a reduction in price, together
with increasing pressure for new products and innovation.
• Economies of scale- By producing both for the home and international
markets companies can produce at a larger scale and therefore take
advantage of economies of scale.
• Specialisation- If a country specialises in producing the goods and
services at which it is most efficient, it can maximise its economic
output
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 4
Provided by
ACCA Research Institute
ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com
, P4 Chapter 7 Content
1 Multinational companies&international trading
2 Investment appraisal for international projects
3 Forecasting foreign exchange rates
4 The impact of taxation, inter company cf
and remittance restrictions
5 NPV analysis for foreign projects
6 Analysis of comprehensive example
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2
, 1.Multinational companies and international
trading
A multinational company is defined as one that generates at least
25%of its sales from activities in countries other than its own.
The economic environment
for multionationals
Management of international Strategic business planning
trade and finance for multinationals
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 3
, 1.Multinational companies and international
trading
International trading
Practical reasons for international trading
• Choice- The diversity of goods available in a domestic economy is
increased through the import of goods that could be uneconomic or
impossible to produce at home
• Competition-International trade will increase compeition in domestic
markets, which is likely to lead to both a reduction in price, together
with increasing pressure for new products and innovation.
• Economies of scale- By producing both for the home and international
markets companies can produce at a larger scale and therefore take
advantage of economies of scale.
• Specialisation- If a country specialises in producing the goods and
services at which it is most efficient, it can maximise its economic
output
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 4
