Matakuliah
Tahun
: Keuangan Internasional
: 2009
Globalization and the Multinational Corporation
Pertemuan 1
Soal 1
What an Multinational Corporation (MNCs) and
what economic roles do they play ?
Bina Nusantara University
3
Jawaban Soal 1
A multinational corporation (MNC) can be defined as a
business firm incorporated in one country that has
production and sales operations in several other
countries. Indeed, some MNCs have operations in
dozens of different countries. MNCs obtain financing
from major money centers around the world in many
different currencies to finance their operations. Global
operations force the treasurer’s office to establish
international banking relationships, to place short-term
funds in several currency denominations, and to
effectively manage foreign exchange risk.
Bina Nusantara University
Soal 2
How is international financial management
different from domestic financial management ?
Bina Nusantara University
5
Jawaban Soal 2
There are three major dimensions that set apart
international finance from domestic finance. They
are:
1. Foreign exchange and political risks,
2. Market imperfections, and
3. Expanded opportunity set.
Bina Nusantara University
6
Soal 3
• Home Work
Soal 3, merupakan tugas perorangan yaitu setiap
mahasiswa diwajibkan untuk menyelesaikan kasus
Nike terlampir.
Tugas ini dikumpulkan sebelum perkuliahan pertemuan
berikutnya dimulai.
Bina Nusantara University
7
NIKE’s Decision
•
Nike, a U.S.-based company with a globally recognized brand
name, manufactures athletic shoes in such Asian developing
countries as China, Indonesia, and Vietnam using subcontractors,
and sells the products in the U.S. and foreign markets. The
company has no production facilities in the United States. In each
of those Asian countries where Nike has production facilities, the
rates of unemployment and underemployment are quite high. The
wage rate is very low in those countries by the U.S. standard;
hourly wage rate in the manufacturing sector is less than one
dollar in each of those countries, which is compared with about
$18 in the U.S. In addition, workers in those countries often are
Bina Nusantara University
operating in poor and unhealthy environments and their rights are
not well protected. Understandably, Asian host countries are
eager to attract foreign investments like Nike’s to develop their
economies and raise the living standards of their citizens.
Recently, however, Nike came under a world-wide criticism for its
practice of hiring workers for such a low pay, “next to nothing” in
the words of critics, and condoning poor working conditions in
host countries.
•
Evaluate and discuss various ‘ethical’ as well as economic
ramifications of Nike’s decision to invest in those Asian countries.
Bina Nusantara University