Cover -- Title -- Contents -- Part I Global Financial Environment -- Chapter 1 Current Multinational Financial Challenges -- Financial Globalization and Risk -- The Global Financial Marketplace -- The Theory of Comparative Advantage -- What Is Different about International Financial Management? -- Market Imperfections: A Rationale for the Existence of the Multinational Firm -- The Globalization Process -- Summary Points -- Mini-Case: Nine Dragons Paper and the 2009 Credit Crisis -- Questions ■ Problems ■ Internet Exercises -- Chapter 2 Ownership and Governance of the Corporation -- Who Owns the Business? -- The Goal of Management -- Summary Points -- Mini-Case: Luxury Wars-LVMH vs. Hermès -- Questions ■ Problems ■ Internet Exercises -- Chapter 3 The International Monetary System -- History of the International Monetary System -- IMF Classification of Currency Regimes -- Fixed Versus Flexible Exchange Rates -- A Single Currency for Europe: The Euro -- Emerging Markets and Regime Choices -- Exchange Rate Regimes: What Lies Ahead? -- Summary Points -- Mini-Case: The Yuan Goes Global -- Questions ■ Problems ■ Internet Exercises -- Chapter 4 The Balance of Payments -- Typical Balance of Payments Transactions -- Fundamentals of Balance of Payments Accounting -- The Accounts of the Balance of Payments -- The Capital and Financial Accounts -- Breaking the Rules: China's Twin Surpluses -- The Balance of Payments in Total -- The Balance of Payments Interaction with Key Macroeconomic Variables -- Trade Balances and Exchange Rates -- Capital Mobility -- Summary Points -- Mini-Case: Global Remittances -- Questions ■ Problems ■ Internet Exercises -- Chapter 5 The U.S. and European Financial Crises 142 -- The Credit Crisis of 2008-2009 -- Global Contagion -- The European Debt Crisis of 2009-2012 -- Summary Points -- Mini-Case: The Trouble with LIBOR.

Questions ■ Problems ■ Internet Exercises -- Part II Foreign Exchange Theory -- Chapter 6 The Foreign Exchange Market -- Geographical Extent of the Foreign Exchange Market -- Functions of the Foreign Exchange Market -- Market Participants -- Transactions in the Foreign Exchange Market -- Size of the Foreign Exchange Market -- Foreign Exchange Rates and Quotations -- Summary Points -- Mini-Case: The Saga of the Venezuelan Bolivar Fuerte -- Questions ■ Problems ■ Internet Exercises -- Chapter 7 International Parity Conditions -- Prices and Exchange Rates -- Exchange Rate Pass-Through -- The Forward Rate -- Prices, Interest Rates, and Exchange Rates in Equilibrium -- Summary Points -- Mini-Case: Emerging Market Carry Trades -- Questions ■ Problems ■ Internet Exercises -- Appendix: An Algebraic Primer to International Parity Conditions -- Chapter 8 Currency Derivatives -- Foreign Currency Futures -- Option Pricing and Valuation -- Interest Rate Derivatives -- Summary Points -- Mini-Case: McDonald's Corporation's British Pound Exposure -- Questions ■ Problems ■ Internet Exercises -- Part III Multinational Exchange Rate Exposure -- Chapter 9 The Determinants of Exchange Rates -- Exchange Rate Determination: The Theoretical Thread -- Currency Market Intervention -- Disequilibrium: Exchange Rates in Emerging Markets -- Forecasting in Practice -- Summary Points -- Mini-Case: The Japanese Yen Intervention of 2010 -- Questions ■ Problems ■ Internet Exercises -- Chapter 10 Transaction Exposure Management -- Types of Foreign Exchange Exposure -- Trident's Transaction Exposure -- Summary Points -- Mini-Case: Banbury Impex (India) -- Questions ■ Problems ■ Internet Exercises -- Appendix: Complex Option Hedges -- Chapter 11 Translation Exposure Management -- Overview of Translation -- Translation Methods -- U.S. Translation Procedures.

Trident Corporation's Translation Exposure -- Trident Corporation's Translation Exposure: Income -- Summary Points -- Mini-Case: LaJolla Engineering Services -- Questions ■ Problems ■ Internet Exercises -- Chapter 12 Operating Exposure Management -- Trident Corporation: A Multinational's Operating Exposure -- Measuring Operating Exposure: Trident Germany -- Strategic Management of Operating Exposure -- Proactive Management of Operating Exposure -- Summary Points -- Mini-Case: Toyota's European Operating Exposure -- Questions ■ Problems ■ Internet Exercises -- Part IV Financing the Multinational Firm -- Chapter 13 The Global Cost of Capital -- Financial Globalization and Strategy -- The Demand for Foreign Securities: The Role of International Portfolio Investors -- The Cost of Capital for MNEs Compared to Domestic Firms -- The Riddle: Is the Cost of Capital Higher for MNEs? -- Summary Points -- Mini-Case: Novo Industri A/S (Novo) -- Questions ■ Problems ■ Internet Exercises -- Chapter 14 International Debt and Equity Financing -- Designing a Strategy to Source Capital Globally -- Optimal Financial Structure -- Raising Equity Globally -- Depositary Receipts -- Private Placement -- Foreign Equity Listing and Issuance -- Raising Debt Globally -- Summary Points -- Mini-Case: Korres Natural Products and the Greek Crisis -- Questions ■ Problems ■ Internet Exercises -- Appendix: Financial Structure of Foreign Subsidiaries -- Chapter 15 Global Tax Management -- Tax Principles -- Summary Points -- Mini-Case: The U.S. Corporate Income Tax Conundrum -- Questions ■ Problems ■ Internet Exercises -- Part V Foreign Investment Decisions -- Chapter 16 International Portfolio Theory -- International Diversification and Risk -- Internationalizing the Domestic Portfolio -- National Markets and Asset Performance.

Market Performance Adjusted for Risk: The Sharpe and Treynor Performance Measures -- Summary Points -- Mini-Case: Portfolio Theory, Black Swans, and [Avoiding] Being the Turkey -- Questions ■ Problems ■ Internet Exercises -- Chapter 17 Foreign Direct Investment: Returns and Risks -- Sustaining and Transferring Competitive Advantage -- Deciding Where to Invest -- How to Invest Abroad: Modes of Foreign Involvement -- Political Risk -- Summary Points -- Mini-Case: Corporate Competition from the Emerging Markets -- Questions ■ Problems ■ Internet Exercises -- Chapter 18 Multinational Investment and Acquisition -- Complexities of Budgeting for a Foreign Project -- Project Versus Parent Valuation -- Illustrative Case: Cemex Enters Indonesia -- Project Financing -- Summary Points -- Mini-Case: Yanzhou (China) Bids for Felix Resources (Australia) -- Questions ■ Problems ■ Internet Exercises -- Part VI Special Topics in Global Finance -- Chapter 19 Financial Management of Multinational Operations -- Trident Brazil's Operating Cycle -- Trident's Repositioning Decisions -- Constraints on Repositioning Funds -- Conduits for Moving Funds by Unbundling Them -- International Dividend Remittances -- Net Working Capital -- International Cash Management -- Financing Working Capital -- Summary Points -- Mini-Case: Honeywell and Pakistan International Airways -- Questions Problems ■ Internet Exercises -- Chapter 20 Global Petroleum Development: Fiscal Regimes and Funding -- Financing Petroleum Development -- Fiscal Regimes -- Development Agreements -- Concessions -- Royalty/Tax Systems -- Production Sharing Agreements -- Service Agreements -- Added Contractual Features -- Top-Line Risks -- Petroleum Prices -- A Hypothetical Sub-Saharan PSA -- PSA Evolution -- Fiscal Regimes Today -- Government and Policy Change -- The Future -- Funding Petroleum Development.

Summary Points -- Mini-Case: Petroleum Development and the Curse of Oil -- Questions ■ Problems ■ Internet Exercises -- Answers to Selected End-of-Chapter Problems -- Glossary -- Index -- A -- B -- C -- D -- E -- F -- G -- H -- I -- J -- K -- L -- M -- N -- O -- P -- Q -- R -- S -- T -- U -- V -- W -- Y -- Credits.

For courses in International Finance.  Authoritative, comprehensive coverage of contemporary international finance.  Renowned for its authoritative, comprehensive coverage of contemporary international finance, this market-leading text trains the leaders of tomorrow's multinational enterprises to recognize and capitalize on the unique characteristics of global markets. Because the job of a manager is to make financial decisions that increase firm value, the authors have embedded real-world mini-cases throughout to apply chapter concepts to the types of situations managers of multinational firms face. The thirteenth edition attempts to capture the rapid evolution of our global marketplace through a number of principles, practices, and features.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2022. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.