AFM333 Lecture Notes - Lecture 13: Joint Venture, Transfer Pricing, Market Analysis

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM333
• Professor: Seth Brouwers

Document Summary

Global financial management areas: how to finance subsidiaries, provide capital, how to decide what to own and with whom. Joint ventures: partnerships, how to get money out of subsidiaries, restrictions, how to analyze the same investment opportunities in different countries, reporting implications of our foreign subsidiaries, regulations locally and globally. International financial structure: ownership structure, partners in various countries, partner or agent. Full subsidiaries: factors, company strategy, culture of the business, current structure, market opportunity. Little g or big g: required operational capabilities, value chain, regulatory environment, country and commercial risk, opportunity vs risk, cashflow and working capital across subsidiaries, move money between entity, loan money to subsidiary. Licensing fees: transfer pricing, between subsidiaries, or to parent, trade products between countries, nal transactions, what price to transfer the products or services, control where greatest amounts of profits, taxes, global capital budgeting.