556 Part 6 Working Capital Management, Forecasting, and Multinational Financial Management
Source: “Ups and Downs Around the World,” The Wall Street Journal, January 2, 2008, p. R4.Country Return in U.S. Dollars Return in Local Currency
Brazil #71.1% #42.6%
Malaysia #44.6 #35.5
Hong Kong #44.5 #44.9
Thailand #39.0 #29.5
Indonesia #39.0 #45.1
Finland #39.0 #25.3
Philippines #36.7 #15.1
South Korea #33.6 #34.5
Germany #30.5 #17.7
Greece #29.8 #17.1
Singapore #27.6 #19.7
Canada #27.1 #7.8
Norway #26.8 #10.6
Australia #25.3 #12.4
Portugal #24.5 #12.3
Chile #23.0 #15.1
Spain #17.8 #6.2
Denmark #17.6 #6.1
Iceland #13.1 $0.2
South Africa #12.6 #9.1
Netherlands #12.0 #1.0
France #11.3 #0.4
Mexico #10.8 #11.7
Taiwan #6.5 #6.0
Belgium #5.6 $4.7
Switzerland #5.6 $2.0
United Kingdom #3.8 #2.1
United States #3.8 #3.8
New Zealand #2.2 $6.4
Italy #1.7 $8.3
Austria #1.6 $8.4
Sweden $3.1 $8.5
Japan $6.0 $11.9
Ireland $19.2 $27.1World #8.4 —
World except U.S. #11.8 —Dow Jones Global Stock Indexes in 2007 (Ranked by
Performance in U.S.-Dollar Terms)Tabl e 17 - 417-11 INTERNATIONAL CAPITAL BUDGETING
Up to now, we have discussed the general environment in which multinational
! rms operate. In the remainder of the chapter, we discuss how international factors
affect key corporate decisions. We begin with capital budgeting. Although the
same basic principles of capital budgeting apply to both foreign and domestic
operations, there are some key differences. First, cash " ow estimation is more
complex for overseas investments. Most multinational! rms set up separate