Multinational Finance : Evaluating the Opportunities, Costs, and Risks of Multinational Operations.
- 1st ed.
- 1 online resource (668 pages)
- New York Academy of Sciences Series .
- New York Academy of Sciences Series .
Intro -- Series Page -- Title Page -- Copyright -- Table of Contents -- Preface -- Key Features -- Learning Aids for Students -- Supplements for Instructors -- Acknowledgments -- About the Author -- Part One: The International Financial Environment -- Chapter 1: An Introduction to Multinational Finance -- 1.1 The Goals of the Multinational Corporation -- 1.2 The Challenges of Multinational Operations -- 1.3 The Opportunities of Multinational Operations -- 1.4 Financial Management of the Multinational Corporation -- 1.5 Summary -- Key Terms -- Conceptual Questions -- Chapter 2: World Trade and the International Monetary System -- 2.1 Integration of the World's Markets -- 2.2 Balance-of-Payments Statistics -- 2.3 Exchange Rate Systems -- 2.4 A Brief History of the International Monetary System -- 2.5 Summary -- Key Terms -- Conceptual Questions -- Problems -- Chapter 3: Foreign Exchange and Eurocurrency Markets -- 3.1 Characteristics of Financial Markets -- 3.2 The Eurocurrency Market -- 3.3 The Foreign Exchange Market -- 3.4 Foreign Exchange Rates and Quotations -- 3.5 Hedging with Currency Forwards -- 3.6 The Empirical Behavior of Exchange Rates -- 3.7 Summary -- Key Terms -- Conceptual Questions -- Problems -- Chapter 4: The International Parity Conditions and Their Consequences -- 4.1 The Law of One Price -- 4.2 Exchange Rate Equilibrium -- 4.3 Covered Interest Arbitrage and Interest Rate Parity -- 4.4 Less Reliable International Parity Conditions -- 4.5 The Real Exchange Rate -- 4.6 Exchange Rate Forecasting -- 4.7 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Appendix 4A: Continuous Compounding -- Continuously Compounded Rates of Return -- International Parity Conditions in Continuously Compounded Returns -- Real Exchange Rates in Continuously Compounded Returns -- Summary -- Problems. Part Two: Derivative Securities for Financial Risk Management -- Chapter 5: Currency Futures and Futures Markets -- 5.1 The Evolution of Futures Markets -- 5.2 Futures Contracts -- 5.3 Forward versus Futures Market Hedges -- 5.4 Hedging with Currency Futures -- 5.5 Summary -- Key Terms -- Conceptual Questions -- Problems -- Chapter 6: Currency Options and Options Markets -- 6.1 What Is an Option? -- 6.2 Option Payoff Profiles -- 6.3 Currency Option Values Prior to Expiration -- 6.4 Hedging with Currency Options -- 6.5 Exchange Rate Volatility Revisited -- 6.6 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Appendix 6A: Currency Option Valuation -- The Black-Scholes option pricing model -- A currency option pricing model -- Key Terms -- Problems -- Further Reading -- Chapter 7: Currency Swaps and Swaps Markets -- 7.1 The Growth of the Swaps Market -- 7.2 Swaps as Portfolios of Forward Contracts -- 7.3 Currency Swaps -- 7.4 Interest Rate Swaps -- 7.5 Other Types of Swaps -- 7.6 Hedging the Swap Bank's Exposure to Financial Price Risk -- 7.7 Summary -- Key Terms -- Conceptual Questions -- Problems -- Advanced -- Part Three: Managing the Risks of Multinational Operations -- Chapter 8: Multinational Treasury Management -- 8.1 Determining Financial Goals and Strategies -- 8.2 Managing International Trade -- 8.3 Payment Methods and Financing for International Trade -- 8.4 Managing Cash Flows -- 8.5 Managing Exposures to Currency Risk -- 8.6 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Appendix 8A: The Rationale for Hedging Currency Risk -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 9: Managing Transaction Exposure to Currency Risk -- 9.1 Transaction Exposure to Currency Risk -- 9.2 Managing Transaction Exposures Internally. 9.3 Managing Transaction Exposures in the Financial Markets -- 9.4 Treasury Management in Practice -- 9.5 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 10: Managing Operating Exposure to Currency Risk -- 10.1 Operating Exposures to Currency Risk -- 10.2 The Exposure of Shareholders' Equity -- 10.3 Managing Operating Exposures in the Financial Markets -- 10.4 Managing Operating Exposures Through Operations -- 10.5 Pricing Strategy and the Competitive Environment -- 10.6 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 11: Managing Translation Exposure and Accounting for Financial Transactions -- 11.1 Financial Accounting and Reporting Standards -- 11.2 The Current Rate Method of IAS 21 and ASC 830-30 -- 11.3 Corporate Hedging of Translation Exposure -- 11.4 Accounting for Financial Market Instruments -- 11.5 Accounting, Disclosure, and Corporate Hedging Activities -- 11.6 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Part Four: Valuation and the Structure of Multinational Operations -- Chapter 12: Foreign Market Entry and Country Risk Management -- 12.1 Strategic Entry into International Markets -- 12.2 Country Risk Assessment -- 12.3 Strategies for Managing Country Risk -- 12.4 Protecting the Multinational's Competitive Advantages -- 12.5 Summary -- Key Terms -- Conceptual Questions -- Problem -- Further Reading -- Chapter 13: Multinational Capital Budgeting -- 13.1 The Algebra of Multinational Capital Budgeting -- 13.2 An Example: Wendy's Restaurant in Neverland -- 13.3 International Parity Disequilibria -- 13.4 Special Circumstances in Cross-Border Investments -- 13.5 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 14: Multinational Capital Structure and Cost of Capital. 14.1 Capital Structure and the Cost of Capital -- 14.2 Valuation of a Foreign Project with the WACC -- 14.3 The Cost of Capital on Multinational Operations -- 14.4 Sources of Funds for Multinational Operations -- 14.5 The International Evidence of Capital Structure -- 14.6 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 15: Taxes and Multinational Corporate Strategy -- 15.1 The Objectives of National Tax Policy -- 15.2 Types of Taxation -- 15.3 Taxes and Organization Form -- 15.4 U.S. Taxation of Foreign-Source Income -- 15.5 Transfer Pricing and Tax Planning -- 15.6 Taxes and the Location of Foreign Assets and Liabilities -- 15.7 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 16: Real Options and Cross-Border Investment Strategy -- 16.1 Real Options and the Theory and Practice of Investment -- 16.2 Market Entry as a Simple Real Option -- 16.3 Uncertainty and the Value of the Option to Invest -- 16.4 Market Entry as a Compound Real Option -- 16.5 The Real Option Approach as Complement to NPV -- 16.6 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 17: Corporate Governance and the International Market for Corporate Control -- 17.1 Corporate Governance -- 17.2 The International Market for Corporate Control -- 17.3 The International Evidence on Mergers and Acquisitions -- 17.4 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Part Five: International Portfolio Investment and Asset Pricing -- Chapter 18: International Capital Markets -- 18.1 Domestic and International Capital Markets -- 18.2 International Investment Vehicles -- 18.3 Cross-Border Financial Statement Analysis -- 18.4 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 19: International Portfolio Diversification. 19.1 The Algebra of Portfolio Diversification -- 19.2 Returns on Foreign Investments -- 19.3 The Benefits of International Portfolio Diversification -- 19.4 Home Bias -- 19.5 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Chapter 20: International Asset Pricing -- 20.1 The International Capital Asset Pricing Model (IAPM) -- 20.2 Factor Models of Expected and Required Return -- 20.3 Contemporary Asset Pricing Models -- 20.4 Summary -- Key Terms -- Conceptual Questions -- Problems -- Further Reading -- Appendix: Useful Rules and Formulas -- Conventions Used in Multinational Finance -- Symbols -- Rules and Formulas -- Glossary -- Index -- End User License Agreement.
9781119219705
Foreign exchange. International business enterprises-Finance. International finance.