1. © 2011 South-Western | Cengage Learning Global Financial Activities 20-1 20-1Financing Global Business Operations 20-2 20-2Global Financial Institutions 20-3 20-3Global Banking Activities CHAPTER 20

2. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 2 20 LESSON 20-1 Financing Global Business Operations GOALS Identify the participants in a global financial system Describe the flow of funds for international businesses.

3. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 3 20 Financial Systems in Action Financial system participants Financial markets

4. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 4 20 International Flow of Funds Sources of funds Equity capital Debt capital Uses of funds Current expenses Long-term costs

5. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 5 20 LESSON 20-2 Global Financial Institutions GOALS Identify deposit-type financial institutions. Describe the services of other types of financial institutions.

6. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 6 20 Deposit-Type Financial Institutions Commercial banks Savings and loan associations Credit unions

7. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 7 20 Financial Services of Commercial Banks PAYMENT SERVICES ●Checking account ●Electronic fund transfer ●Letters of credit ●Traveler’s checks ●Currency exchanges BORROWING ●Personal loans ●Business loans ●Credit cards ●Mortgages ●Home equity loans SAVINGS ●Savings account ●Money market accounts ●Certificate of deposit OTHER SERVICES ●Trusts ●Investment advice ●Tax assistance ●Estate planning ●Retirement planning

8. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 8 20 Other Types of Financial Institutions Mutual fund Life insurance company

9. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 9 20 LESSON 20-3 Global Banking Activities GOALS Explain the role of banking for different geographic regions. Identify the purpose of a central bank. Describe the activities of a development bank.

10. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 10 20 International Trade and Banking Africa Asia Europe Latin America Middle East

11. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 11 20 Central Banks and Government Finance Central banks are state-owned agencies that provide governments with banking services. Central bank functions Maintain a stable money supply using monetary policy tools Issue an appropriate amount of currency to facilitate business activities Manage receipts and payments for government agencies Provide loans to government agencies and other enterprises License commercial banks operating in the country

12. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 12 20 Development Bank A development bank is an organization of several countries created to provide financing for economic development to countries in a region.

13. INTERNATIONAL BUSINESS, 4e CHAPTER © 2011 South-Western | Cengage Learning SLIDE 13 20 Regional Development Banks Inter-American Development Bank Asian Development Bank African Development Bank Other Regional Development Banks