Apresentacao SAI - 2010

Seminário Avançado Internacional Ambiente Internacional de Negócios em 2010-12 Prof. Dr. Ervin L. Black São Paulo – SP Abril de 2010

CREDIT CRUNCH to DOWNTURN Defined as "a severe shortage of money or credit", the start of the phenomenon has been pinpointed as 9 August 2007 when bad news from French bank BNP Paribas triggered sharp rise in the cost of credit, and made the financial world realize how serious the situation was. (BBC, 7 August 2009)

CREDIT CRUNCH to DOWNTURN The roots of the credit crunch, however, started earlier.

CREDIT CRUNCH to DOWNTURN Between 2004 and 2006 US interest rates rose from 1% to 5.35%, triggering a slowdown in the US housing market. Homeowners, many of whom could only barely afford their mortgage payments when interest rates were low, began to default on their mortgages.

Global Financial Crisis Collapse in the housing market and general confidence Lehman Brothers bankruptcy on 15 Sept 2008 Collapse in equity markets, commodities prices, and exchange rates Safe haven vs. flight to risk Concern about massive government budget deficits, especially as a percentage of GDP

Global Financial Crisis US Federal Reserve slashes its key interest rate from 1% to a range of 0 to 0.25 % - the lowest since records began The European Central Bank, as well as UK, Sweden and Denmark slash interest rates again President Bush says will use $17.4 billion to help US auto makers and bailout for GMAC The FTSE closes down 31.3% (lowest in 24 years) The DAX loses 40.4% and CAC 40 drops 42.7% Japan’s economy contracted at an annualized rate of 14.2% in first three months of 2009, a record!

Global Financial Crisis Recent Headlines “ Financial crisis has set up investment opportunities in Asia” Singapore News , April 1, 2010 “the global financial crisis may have been the best thing that has happened to Asia.” “the crisis has helped the region move away from being too export-dependent and develop its own economic drivers

Global Financial Crisis Recent Headlines “China central bank warns of risks to global recovery” Malaysian Mirror , April 2, 2010 “China’s central bank warned that the global economic recovery could falter this year as developed countries exited their pro-growth policies adopted during the financial crisis.” “The central bank report was released as China comes under growing international pressure to let its currency appreciate”

Global Financial Crisis Recent Headlines “ China, Wall Street, and the financial crisis: Francis Fukuyama talks with Henry Paulson, ” The Christian Science Monitor , March 30, 2010 “ many observers expressed concern about the implications of large structural imbalances in the global economy: so much savings being accumulated in China, so much debt being racked up in the United States, and so much foreign money flowing back into the US banking and financial system in ways that may have encouraged excessive risk-taking and contributed to the real-estate bubble. ”

Global Financial Crisis Recent Headlines “ Consensus on Finance Rules Fading, I.M.F. Says, ” The New York Times , March 31, 2010 “An international drive to impose new regulations in the wake of the financial crisis is fading and global cooperation is diminishing, the managing director of the International Monetary Fund said Tuesday. ”

Global Financial Crisis Recent Headlines “ G20 must recommit to financial reforms: leaders, ” Reuters , March 30, 2010 “Progress has been made toward stabilizing the global financial system but G20 countries must recommit to deliver on reforms that led to the crisis, G20 steering group leaders said”

The Global Financial Crisis and Exchange Rates

Impact of the Global Financial Crisis on Sony In 2008, Sony generated 23.2% of its revenues in Japan, 25.1% of its revenues in the U.S., 26.2% in Europe, and 25.5% elsewhere Slowdown in the global economy affected demand Strong yen made exports more expensive, reducing demand Earnings from the U.S. and Europe in weaker currencies hurt earnings and net assets

How Does Foreign Exchange Affect You? Travel and tourism – a rising dollar (cheaper trips) vs. a falling dollar (more expensive trips) Buying products made abroad Buying products that have foreign components Impact of currency changes on our spending patterns – price elasticity of demand (a responsiveness in demand to a change in price)

How Does Foreign Exchange Affect Business? Transaction exposure Impact on receivables and payables A cash flow effect Translation exposure Impact on balance sheet an income statement Not a direct cash flow effect (Centigrade vs. Fahrenheit) Economic exposure – long-term business decisions such as where to source and where to invest

What Drives the Value of Currencies? Freely floating vs. managed float vs. fixed Role of government intervention Benign neglect – interest rate policies are not based on exchange rate targets Inflation is the key long-term fundamental Short-term values are dependent on other issues, such as relative interest rates, other economic news, confidence, etc.

Important Meta-Competencies – Research on High Potential Executives Learning to learn quickly Technology skills Flexibility Learning to work across boundaries (global competency) Team skills Learning to add value to customers

Learning Outcomes Recognize how cultural, administrative, geographic and economic distance (CAGE) affect international business Identify the characteristics of a global industry and how firms must develop their strategy in the context of the industry in which they operate Assess different methods of entering foreign markets Examine how MNEs select, prepare, compensate and retain managers

Good Resources http:// www.lib.byu.edu /business/ Go to Business Management International/countries GlobalEdge at Michigan State University http://globaledge.msu.edu/

BRICs – Jim O’Neill of Goldman Sachs http://www2.goldmansachs.com/ideas/brics/index.html

Key BRIC Ideas The BRICs are large and growing quickly in terms of GDP but not per capita GDP The next decade is likely to be the peak for global growth but will decline due to aging populations in Europe, Japan, and some of the BRICs – notably China The middle class in the BRICs could grow fourfold in the next decade

BRIC Ideas cont. Global demand for oil and other commodities will stay strong throughout the next two decades and prices will remain high BRICs’ weight in global market capitalization is set to rise significantly BRICs’ exchange rates could appreciate by close to 300% by 2050 How are the BRIC ideas under assault since the global financial meltdown and recession?

The World is Flat by Thomas L. Friedman – Release 3.0 Chapter 1 – While I Was Sleeping Chapter 2 – The Ten Forces that Flattened the World Chapter 3 – The Triple Convergence Chapter 4- The Great Sorting Out Chapter 5 – American and Free Trade Chapter 10 – Culture Matters – Glocalization (pp. 420-426) Chapter 11 – How Companies Cope Chapter 12 – Globalization of the Local

The Ten Forces That Flattened the World 11/9/89 – The New Age of Creativity: When the Walls Came Down and the Windows Went Up 8/9/95 – The New Age of Connectivity: When the Web Went Around and Netscape Went Public Work Flow Software Uploading: Harnessing the Power of Communities Outsourcing: Y2K Offshoring Supply-Chaining Insourcing In-forming: Google, Yahoo!, MSN Web Search The Steroids: Digital, Mobile, Personal, and Virtual

“ The World is Spiky” The Atlantic Monthly , Richard Florida, October 2005 Globalization has changed the economic playing field, but hasn’t leveled it. Population: urban areas house half of the world’s people, and continue to grow in both rich and poor countries Light Emissions: Economic activity – roughly estimated using light-emissions data – is remarkably concentrated. Many cities, despite large populations, barely register.

“ The World is Spiky” The Atlantic Monthly , Richard Florida, October 2005 Globalization has changed the economic playing field, but hasn’t leveled it. Patents: Just a few places produce most of the world’s innovations. Innovation remains difficult without a critical mass of financiers, entrepreneurs, and scientists, often nourished by world-class universities. Scientific Citations: The world’s most prolific and influential scientific researchers overwhelmingly reside in U.S. and European cities.

Distance Matters Cultural Distance Administrative Distance Geographic Distance Economic Distance - Languages -Ethnicity -Religions -Social norms Colonial ties Regional groups Political hostility Gvt. Policies Institutional weakness Barriers - Protection Consumer incomes Cost and quality of resources Disparities in supply chain Physical remoteness Lack of a common border Lack of sea or river access Size of country Transport/comm. Links Climates

Distance Attribute Change in International Trade % Income level: GDP per capita (1% increase) +0.7 Economic size: GDP (1% increase) +0.8 Physical distance (1% increase) -1.1 Physical size (1% increase)* -0.2 Access to ocean* +50 Common border +80 Common language +200 Common regional trading bloc +330 Colony-colonizer relationship +900 Common colonizer +190 Common polity +300 Common currency +340

U.S. EXPORTS TO Canada 22.2% European Union 20.6% Mexico 12.9% Japan 5.8% China 5.3% UK** 4.4% Germany** 4.3% South Korea 3.0% Netherlands** 2.8% France** 2.4%

U.S. IMPORTS FROM European Union 17.7% Canada 16.0% China 15.9% Mexico 10.4% Japan 7.9% Germany** 4.8% UK** 2.9% South Korea 2.5% France** 2.2% Taiwan 2.0%

GERMAN EXPORTS TO EU 62.3% France* 9.5% U.S. 8.7% U.K.* 7.3% Italy* 6.7% Netherlands* 6.3% Austria* 5.6% Belgium* 5.2% Spain* 4.7%

GERMAN IMPORTS FROM EU 57.6% Netherlands 11.8% France 8.5% Belgium 7.2% China 5.9% UK 5.7% Italy 5.6% US 5.3% Austria 4.3%

BRAZIL EXPORTS TO US 17.8% Argentina 8.5% China 6.1% Netherlands 4.2% Germany 4.1%

BRAZIL IMPORTS FROM US 16.2% Argentina 8.8% China 8.7% Germany 7.1% Nigeria 4.3% Japan 4.2%

INDIA EXPORTS TO US 17.0% UAE 8.3% China 7.7% UK 4.3%

INDIA IMPORTS FROM China 8.7% US 6.0% Germany 4.7% Singapore 4.6%

RUSSIA EXPORTS T0 Netherlands 12.3% Italy 8.6% Germany 8.4% China 5.4% Ukraine 5.1% Turkey 4.9% Switzerland 4.1%

RUSSIA IMPORTS FROM Germany 13.9% China 9.7% Ukraine 7.0% Japan 5.9% South Korea 5.1% US 4.8% France 4.4% Italy 4.3%

CHINA EXPORTS TO US 21.0% Hong Kong 16.0% Japan 9.5% South Korea 4.6% Germany 4.2%

CHINA IMPORTS FROM Japan 14.6% South Korea 11.3% Taiwan 10.9% US 7.5% Germany 4.8%

TOP 10 in GDP MILLIONS OF USD U.S. 13,201,819 JAPAN 4,340,133 GERMANY 2,906,681 CHINA 2,668,071 UK 2,345,015 FRANCE 2,230,721 ITALY 1,844,749 CANADA 1,251,463 SPAIN 1,223,988 BRAZIL 1,067,962

PPP GDP U.S. 13,201,819 CHINA 10,048,026 INDIA 4,247,361 JAPAN 4,131,195 GERMANY 2,616,044 UK 2,111,581 FRANCE 2,039,171 ITALY 1,795,437 BRAZIL 1,708,434 RUSSIA 1,704,756

GNI PER CAPITA LUXEMBOURG 76,040 BERMUDA N/A NORWAY 66,530 LIECHTENSTEIN N/A CHANNEL ISLANDS N/A SWITZERLAND 57,230 DENMARK 51,700 ICELAND 50,580 IRELAND 45,580 UNITED STATES 44,970

Patterns of Internationalization Figure 1.7 1-16

Culture in International Business

Tell me… So, what is culture, anyway?

Environment (Geographic & Technological) Cultural Values Institutions (Family, Church, School, Media, Government) Peers Person (individual values and behaviors)

Types of Behavior UNIVERSAL Eating CULTURAL Eating from your own plate PERSONAL Eating in front of the television

SO…Culture is… Attitudes Behaviors Expectations Values Composed of: Learned Shared Transmitted That are: By a group of people

Cultural Assumptions The Locus of Control – external vs. internal Concept of Self – individualistic vs. collectivist Concepts of Right and Fairness – universalist (normative) vs. particularist (relative) Management Style – decentralized vs. centralized Communication Style – direct vs. indirect

Key Concepts from Hall & Hall Fast and Slow Messages & Information Flow Time: Polychronic vs. Monochronic Space: Territoriality & Personal Space Context: “The information that surrounds an event”

Issues Hierarchy Verbal Communication Non-verbal Communication Values Thinking Process

Why Does Culture Matter? “ Although misunderstandings are blameless artifacts of the way two very different systems work, accidents of culture are seldom understood for what they really are.” --Edward Hall

Hall’s “Context” Content (implicit) Information (explicit) Meaning High Context (Japan) Low Context (U.S.)

Contextual Background of Various Countries Swiss North American (US) French English (UK) Italian Latin American Arabian Spanish Japanese German Scandinavian Low Context Explicit High Context Explicit

Hofstede Power Distance Relationship preference The extent to which the less powerful accept and expect that power will be distributed unevenly Individualism vs. Collectivism Relationship preference The degree to which individuals are integrated into groups

Hofstede Uncertainty Avoidance Risk-taking Behavior Tolerance for uncertainty & ambiguity (low UA) Degree of comfort in unstructured situations (low UA) Need rules (high) Future Orientation LT—Thrift and perseverance ST—tradition, fulfilling social obligations, protection of “face” Masculinity/Femininity Work Motivation Gender role separation Assertiveness & competitiveness vs. modest and caring

Hofstede’s Dimensions of National Culture Rank (out of 60) U.S. Germany Japan Individualism-Collectivism 1 15 22 Power Distance 38 42 33 Uncertainty Avoidance 42 29 7 Masculinity 15 9 1 Long-Term Orientation Low Mid High

Structural Aspects of Language & Nonverbal Behaviors (“How” things are said) Cultures Bargaining Behaviors(per 30 minutes) USA JPN BRZ KOR GEP UK SPN MEX FCAN ECAN Structure Aspects “ No’s” 4.5 1.9 41.9 7.4 6.7 5.4 23.2 4.5 7.0 10.1 “ You’s” 54.1 31.5 90.4 34.2 39.7 54.8 73.3 56.3 72.4 64.4 Nonverbal Behaviors Silent Periods 1.7 2.5 0 0 0 2.5 0 1.1 0.2 2.9 Conversation-al Overl 5.1 6.2 14.3 22.0 20.8 5.3 28.0 10.6 24.0 17.0 Facial Gazing 10.0 3.9 15.6 9.9 10.2 9.0 13.7 14.7 18.8 10.4 Touching 0 0 4.7 0 0 0 0 0 0 0

The “What” of Communication Bargaining Behaviors USA JPN BRZ KOR GER UK SPN MEX FCAN ECAN Promise 8 7 3 4 7 11 11 7 8 6 Threat 4 4 2 2 3 3 2 1 3 0 Recommendation 4 7 5 1 5 6 4 8 5 4 Warning 1 2 1 0 1 1 1 2 5 0 Reward 2 1 2 3 4 5 3 1 1 3 Punishment 3 1 3 5 2 0 2 0 2 1 Normative appeals 2 4 1 3 1 1 1 1 3 1 Commitment 13 15 8 13 9 13 9 9 8 14 Self-disclosure 36 34 39 36 47 39 34 38 42 34 Question 20 20 22 21 11 15 17 27 19 26 Command 6 8 8 13 12 9 17 7 5 10

Culture and Negotiation Strategies High Low High Low Integrate “ Scripts” Induce to Follow Your “Script” Involve Mediator Follow Counterpart “ Script” Your Familiarity with Their Culture Their Familiarity with Your Culture

Why does culture matter in marketing? The marketing mix Promotion Product Place (channels) Price People (who will buy) How to approach marketing (strategy) Influences macro environment for marketers (trade policy)

Hall’s Silent Languages Language of Time Language of Space Language of Things Language of Friendship Language of Agreements

Nine Nations of North America The industrial Foundry (Philadelphia) New England and the Maritime Provinces of Canada (Boston) Dixie, The Southern States (Atlanta) The Intermountain West or Empty Quarter (Denver) Hispanic Southwest and Mexico or Mexamerica (Los Angeles) Pacific Northwest or Ectopia (San Francisco) Great Plains or Breadbasket (Kansas City) Latin American Rim or Islands (Miami) Quebec

CROSS-CULTURAL SENSITIVITIES “ What America does best is understand itself. What it does worst is understand others.” - Carlos Fuentes, prominent Mexican novelist “ Most people in the U.S. tend to view foreigners as underdeveloped Americans.” - Edward Hall

Industry Effect Industry structure directly influences a company’s performance A company can convert an innovative strategy into superior competitivness The five forces model forces management to focus on forces driving change and that will be important in the future

The Five Forces Model of Industry Structure 11-

Definitions Firm: Domestic, international/multinational Industry: global, local Strategy: multi-domestic or multi-local, global, transnational

Definition of a Global Industry An industry in which firms must compete in virtually all world markets where the product/service is used in order to be successful and/or survive. In such an industry, a firm’s competitive position is significantly affected by its competitive position in other national markets (due to scale benefits or sharing of resources across markets).

Global Strategy Global – does not have to be everywhere, but it has to have the capability to go everywhere, deploy any assets, access any resources; maximizes profits on a global basis Natural progression Establish a core strategy Internationalize Globalize

General Globalization Forces Customer/Market Drivers Per capita income convergence among markets Convergence of lifestyles and tastes Increasing travel creating global consumers Organizations beginning to behave as global customers Growth of global and regional distribution channels Establishment of world brands Push to develop global advertising (emergence of global advertising firms)

General Globalization Forces Cost Drivers Continuing push for economies of scale (but offset by flexible manufacturing). Decreasing communication and transportation costs. Accelerating technological innovation. Increasing cost of product development and technology (R&D) relative to market life. Emergence of newly industrializing countries with productive capability and low labor costs.

General Globalization Forces Government Drivers Reduction of tariff barriers Reduction of non-tariff barriers Creation of new trading blocs: WTO, NAFTA, EU, ASEAN, Mercosur Decline in the role of governments as producers and consumers Adoption of global standards Liberalization of labor laws

General Globalization Forces Competitive Globalization Drivers High exports and imports Competitors from different continents Interdependence of countries Competitors globalized

Factors Inhibiting Globalization Heavy transportation or storage costs (e.g., low value to bulk products). A lack of economies of scale (flat experience curve) Strong, established local distribution channels and sales organizations A complex, segmented local market in which customers demand very different products (more suitable for a local firm more intimately embedded in it). High cost/difficulty in providing intensive local customer systems, service, or other needed customer interaction. Government barriers.

A FRAMEWORK FOR ANALYSIS Pressures for Global Integration Low High High Differences in customer needs Differences in govt. regulations Significant economies of scale - High R&D Steep X-Curve Pressures for Local Differentiation

Global Strategy HQ STRATEGIC INTENT: Gain Global Market Share Leadership POLICIES: Specialized Production and R&D Centers Break Down Value Chain and Exploit Low Cost Locations World Products to Build Volume and Global Product Roll-out Price Leadership Optimize Global Network at Local Expense International Human Resources

The Extreme Global Value Chain Country Activities A B C D E F G H R & D Design Purch- asing Manu- facturing Marketing Selling Distrib- ution Service Design Purchasing Manu- facturing Etc.

THE GLOBAL STRATEGY Some Companies Emphasizing this Approach: Royal Dutch Shell Caterpillar Hewlett Packard Boeing Intel Coca Cola Matsushita IBM American Express LM Ericsson Toyota Sony

Multi-Domestic Strategy HOLDING STRATEGIC INTENT: Gain Key Positions in Selected Markets POLICIES: Tailor Products to National Idiosyncrasies Differentiated Operations Sacrifice Efficiency for Market Access Reach Economies of Scale Upstream Maximize Local Value Added Gain Government Support Use Join Ventures to Preempt Competition and Add Local Value National Human Resources

The Fully Multi-local Value Chain Country Activities A B C * * * * Z R & D Design Service Distrib- ution Selling Market-ing Manu- facturing Purch- asing R & D R & D R & D Design Design Design Purch- asing Purch- asing Purch- asing Manu- facturing Manu- facturing Manu- facturing Market-ing Market-ing Market-ing Selling Selling Selling Distrib- ution Distrib- ution Distrib- ution Service Service Service

THE MULTI-DOMESTIC APPROACH Some Companies Emphasizing this Approach: Unilever Procter & Gamble Federal Express PricewaterhouseCoopers KPMG Philips Nestlé BASF General Motors Carrefour

Global Integration - Local Differentiation High High Low Low Pressures for Global Integration Pressures for Local Differentiation - Differences in needs Differences in regulations Global Strategy Multi-domestic Strategy

Pressures for Global Integration Companies that operate internationally face the asymmetric pressures of global integration versus local responsiveness Change, whether in managers, competencies, industries, or environments, often spurs companies to rethink and reset their value activities 11-

Integration-Responsiveness (IR) Grid (I): Industry Types

Types Of Strategy The firm entering and competing in foreign markets can adopt either an: international multidomestic global transnational strategy Often, firms use a mix of these four types due to company, industry, and environmental situations 11-

Integration-Responsiveness (IR) Grid (II): Strategy Types

Performance Evaluation and Foreign Exchange Risk in Brazil: The Case of Eastland Electronics

International Accounting Issues Foreign exchange (FX) concepts and computations Reported Translation versus Realized Transaction gains/losses Translation GAAP standards Translation or Closing/Current Rate method Independent subsidiary Remeasurement or Temporal method Interdependent subsidiary Managing Transactions, Accounting, and Economic Exposure with Hedging Strategies

Management Accounting Issues Principal-Agent Model Principle of Controllability Control of Variables Information Content of Variables Incremental Value of Information Limits of Management Control Systems Assessment Formulas and “Gaming” The Fallacy of Perfect Control

Case Setting Eastland evaluates P&L performance in US$ and in local currency Hence, subsidiary must make up translation losses with operating performance when dollar strengthens AND subsidiary can’t use translation gains (dollar weakens) to cover poor operating performance Tough Love!

Some “Real” History Daily Exchange Rates: U.S. Dollars per Brazilian Real

Question 1 How would a weakening Brazilian real impact Eastland’s cash flows, translation gains/losses, and asset/liability valuations? What would be the impact of a strengthening real? What would be the impact of a weakening US dollar ?  CAREFUL!

Question 2 How does Eastland use FX rates in setting the budgets and evaluating results?

Question 3: Why do you think some of these ten combinations are more widely used than others? Exhibit 2 Exchange Rate Fluctuations and Management Control in UK-based MNCs

Question 4 How well does Eastland’s performance evaluation system motivate good decision making? How well does the system support principles of controllability and fairness?

The Dilemma Corporate CFO (Karen) needs to respond to the Brazil Division CFO (Sergio) about the fairness of Eastland’s current performance measurement (PM) system Karen is concerned about several issues Equity and motivation Gaming Expectations of U.S. Stockholders Challenges of multiple reporting formats

The Nature of Employment Contracts Aspects of performance that affect the contracting relationship Uncertainty Employee is inherently risk averse Moral Hazard Employee exerts less effort than desired by employer because effort cannot be monitored In designing employment contracts, companies need to consider the trade-off between creating incentives vs. imposing risk. Range of possible compensation agreements Flat salary Pure performance based

Principal-Agent Model Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management

The Employment Contract should … Separate the performance of the manager from the performance of the SBU Include only factors controllable by the manager Recognize and address a manager’s risk aversion

Sergio’s Stewardship (in a “perfect world?”) Work closely with Eastland Corporate treasury function to accurately forecast FX rates Select effective hedge contracts based on FX forecasts (e.g., options and forward contracts) Work hard subsequently to react to currency revaluations (e.g., price shifts, transaction timing, vendor selection) **Note: Eastland uses a forecasted exchange rate for budget setting and the actual exchange rate at the end of the period for evaluation

Principal-Agent Model  The Real World Outcome of manager’s decision and effort Risk Aversion Decision Making Effort Receives Pay Uncertainty External Factors Prepare Performance Report Accounting Pay Managers on Basis of Performance Top Management

Question 5 Do you recommend that Eastland continue with its approach of including FX variances in evaluating the performance of international subsidiaries such as its Brazil Division?

The Principle of Controllability “ True” Controllability Can the manager affect the distribution by altering his/her inputs? If not, then performance variable is not useful Information Content (i.e., conditional controllability) Can the manager affect the distribution conditioned on whatever other information is present ? If so, then performance variable has information Score i = effort/intelligence i + noise i + instrument i Antel and Demski, 1988, “The Controllability Principle in Responsibility Accounting,” The Accounting Review (October)

Current Practice No convergence of practice 1/3 of UK firms use “Internal Forward Rates” Corporate “buys forward” receipts in foreign currencies from the subsidiary at a guaranteed rate 1/10 of UK firms involve local management in FX forecasting 1/3 of UK firms subsequently revise their forecasted rates Responsibility for translation gains/losses 2/3 to parent company 1/10 to subsidiary Rest don’t use for performance evaluation? Responsibility for transaction gains/losses Nearly 1/2 to subsidiary US firms are more likely to hold subsidiary managers responsible for both translation and transaction gains/losses Gaps between theory and practice? Demirag and De Fuentes, 1999, “Exchange Rate Fluctuations and Management Control in UK-Based MNCs: An Examination of the Theory and Practice,” The European Journal of Finance

Apresentacao SAI - 2010

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