Exploring Sources of Financing and the International Money Market
This chapter delves into the various sources of financing available to entities in both domestic and international markets. It highlights nonfinancial institutions’ self-financing and debt financing methods, as well as equity financing strategies. The chapter also discusses the roles of financial institutions and government agencies, including key international financial organizations like the World Bank, IMF, and IFC. Additionally, it examines financial centers, including the Euromarket and Asian Dollar Market, while explaining mechanisms like venture capital, trade credit, and mixed-blended credit.
Exploring Sources of Financing and the International Money Market
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Presentation Transcript
Chapter 18 Sources of Financing and International Money Market
Chapter Outline • Nonfinancial Institutions - Self Financing and Debt Financing - Equity Financing • Financial Institutions • Government Agencies
Chapter Outline • International Financial Institutions/Development Banks - World Bank - International Development Association (IDA) - International Finance Corporation (IFC) • Multilateral Investment Guarantee Agency (MIGA) • International Centre for Settlement of Investment Disputes (ICSID)
Chapter Outline • International Monetary Fund (IMF) - SDR - Functions • Financial Centers - Euromarket - Asian Dollar Market
Self Financing • own capital • withholding of dividends • trade credit • joint venture partners • borrowing from affiliated firms and employee retirement fund • issuing stocks • issuing commercial paper or bonds • venture capital
Equity Financing • Selling Stock
Financial Institutions • Factoring Houses • Forfaiting • Banks
Government Agencies • Concessionary Financing • Mixed/Blended Credit
International Financial Institutions/ Development Banks • World Bank (IBRD) • International Development Association (IDA) • International Finance Corporation (IFC) • Multilateral Investment Guarantee Agency (MIGA) • International Centre for Settlement of Investment Disputes (ICSID)
International Monetary Fund (IMF) • Special Drawing Right (SDR) • Functions - Regulatory Function - Consultative Function - Financial Function
Financial Centers • Booking Center vs. Funding Center • Euromarket • Asian Dollar Market