n.05_September_October.2009.Englisch._

.lANGUAGEFINANCIALENGLlSH

IU1mn"

T

herapidspreadofthefinancialcrisisandrecessionhave

shownusjusthowglobalizedtheworld'scapitalmarkets

have become. According to the Internatjonal Monetary

furu1,cross-bordercaDjtalflowsincreasedfasterthanboth

worldproductionandtradeinthepasttenyears,reaching

$6.41lilli2n.or 14 percentofworldillLE,in2007.

AlthoughthepercentagehasfaUenrecently,internation-

alinvestmenthadrisensteaW1Y.sincethe19705,whenthe

US!!fW1manyrestrictionsonglobalflowsofcapital,mak-

ingit easierforinvestorstobuy~inforeigncompanies.

Theglobalizationofcapilalmarketsoffers!womainadvan-

tagesinthewayscompaniescan~money:

• First.companieshavea greaterrangeofbanksandcred-
  itinstitutionstromwhichtheycanborrowmoneytorfinanc-
  ingtheirdailybusiness.Withmorepotential~,com-
  paniescanlewertheirborrowingcostsbecausetheyareno
  longerlimitedtodealingwiththebanksonryintheirhome
  countnes.Thisimprovesa company'sbalancesheetand
  makesthefirmmoreattractivetoinvestors.


• Second,companiescan1is1theirsharesonvarious~
  exchangesaroundtheworldratherthanonlyintheirhorne
  countries.Moneymanagerspreferinvestingincompanies

GLOBAL MARKETS

DemKapitalstromsindkeineGrenzenmehrgesetzt.Warum

diesnichtnurVorteilehat,erklärtIhnenJAMESSCHOFIELD.

listedonlarge exchangessuchasthese inNew Yorkor

London,becausecostsarelewerandthevotumeoftrading

is higher.Suchexchangesarealsostrictlyregulated,which

reducesinvestors'risk.

Anotherbenefitofbeingliste<!internationallyis thatitis

easierforcompaniestoexpandbybuyingothercompanies.

Manycompanylakeoyers- particularlyintheUS- arefi-

nancednotbycashbutthroughstockswaps,alsocalled

"shareswaps".Thepurchasjngcomoanyofferssame 01 its

sharestothetargetcompany'sinvestorsata certainra..li2,

whichisbasedonthenumberofsharestheinvestoralready

hasinthetargetcompany.

Themainriskofglobalcapitalmarketsis thatinternation-

alinvestorsareusuallyinterestedonlyinshort-termprofits.

Companies'Quarterlyresultsmust beimpressive, orin·

vestorswilltaketheirmoneyelsewhere.Thismakeslong-

termplanningandinvestmentdifficult.Firmsliste<!onlarge

exchangeshavetoconformtointernationalstandards, so

businessmethodsthatwereacceptableinthehornecoun-

trymaynowbeforbidden.Thiscangreatlychangehowa

firmis run- andnotalwaysforthebetter!

Thereistheriskthata companycan losefavourvery

quicktybyfailingtomeetex.pectations.Therushtoinvest

ina firmbecomesa racetogetone'smoneyoutofit.Ifa

companyisseenaslackingcreditworthiness,thisviewcan

spreadlikea disease.Youmightsaythat,whenWallStreet

~,therestoftheworld'sexchangescatcha&2!..d.,[J

stockuchanee['stoklb,tJemd;>1

stockswap['stokswoplchieflyUS

targetcomJ)any['10.:911,k"mJl;lnH

trillionf'lrJlj;nJ

Answers04'lpage 87

JAMESSCHOFIELDteachesbUSinessandfinancial

EnglishinMunlch.Heisco-authoroftheDouble

Deafingcoursebookseries(SummertownPublishing).

Contact:[email protected]

...

EXERCISE: Buyurswap?

Usewordsfromthebox 10 completethisconversation

betweentwoUSinvestmentmanagers.

Iisted_quarterly.takeover.share_ stockswap

Ron:Camilla,haveyouheardthatTilneyBuildingis

planningaa) ofBiancaEnterprises?

Camilla:Whataretheyoffering,a b)?

Ron:No,astraightcashofferof$26acl-,---,---::-,--

Camilla:Hmm.Tilney'sproductionismovingtoAsia,

though.They'redl inHongKong,right?

Ron:Yes,andtheirlastsixe) resullsare

preltygood,too.Whalareyougoingtoda?

Camilla:I think1'11waita while.IthlnkTilneywillhave

toofferatleast$30.

Bilanz

Kapitalfluss.-strom

Schnupfen

balam::eshei!t['ba:I.:msfi:tI

~pitalf10w('I;:/t"p,t>ln:>tll

coldLbold]

cornpan)'ta~rl,kAlnp;)ni'le,k,,)uv:>j

c:reditworthlnessI'kredlt,w3:öin:>sr

GDP(grossdomesticproduc:tJ

(.1I.')i:di:'pi:I""",==c.o

Inte~tionalMonetaryFund Weltwatuungsfoods

[,nt:>,nreJ'n;)I'!IlAflIl:mr...mil~===~~

Ienderlittsth.1'lend;)1Iliftl etw.Kreditge~~,aufheben~~~=

"ifSffshares)[list] (Aktien)anderBOrse

_____notie~"~"=:c<cc-_

Obernehmende

Gesellschaft

Quartalsergebnis

(Geld)aufbringen,

beschaffen

VemaltrJiS

Aktie

niesen

stetig.kontinuietlich

ratiof'relJi:>1l1

sharel1e;1

snee:e[sni:z)

steadll)'f'~lel.hli]

purchaslngcompany

['P'J:1J;I~IlJ,k...mp~niJ

ql.lilrterlyresultLkw::!,!:>liri'ZAIl1

raise(money)[tel"-]

84 BusinessSpolligb1 512009