International Financial Management

Cover
Brief Contents
Contents
About the Authors
Preface
Part I: The International Financial Environment
	Chapter 1: Multinational Financial Management: An Overview
		Understanding the Context
		Goal of the MNC
		Conflicts with the MNC Goal
		International Business Methods
		Exposure to International Risk
		Overview of an MNC's Cash Flows
		Host Country MNC Relationships
		MNC Valuation
		Organization of the Text
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Decision to Expand Internationally
		Small Business Dilemma: Developing a Multinational Sporting Goods Industry
	Chapter 2: International Trade and Investment: Measurement and Theories
		Balance of Payments
		International Trade and Investment Flows
		Factors Affecting International Trade Flows
		Correcting a Balance of Trade Deficit
		International Capital Flows
		Economic Theories of International Trade and Investment
		Agencies That Facilitate International Flows
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Exposure to International Flow of Funds
		Small Business Dilemma: Developing a Multinational Sporting Goods Industry
	Chapter 3: International Financial Markets and Portfolio Investment
		Functions of a Financial Market
		Motives for Using International Financial Markets
		Foreign Exchange Market
		Understanding the Exchange Rate
		International Money Market
		International Credit Market
		International Bond Market
		Comparing Interest Rates between Currencies
		International Stock Markets
		International Financial Markets and the MNC
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Decisions to Use International Financial Markets
		Small Business Dilemma: Developing a Multinational Sporting Goods Industry
		Appendix 3: Portfolio Investment
	Chapter 4: International Ethical Concerns: The Green Movement, Islamic Finance and Globalization
		What Are Ethics?
		The Importance of Ethical Issues
		The Green Movement
		Islamic Finance
		Globalization and Its Discontents
		International Corporate Governance
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Ethical Debate
		Small Business Dilemma: Obtaining Finance
		Part I: Integrative Problem
		Part I: Essays/Discussion and Academic Articles
Part II: Exchange Rate Behaviour
	Chapter 5: Exchange Rate Changes
		Measuring Exchange Rate Movements
		Exchange Rate Movements - An Overview
		Factors That Influence Exchange Rates
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Assessment of Future Exchange Rate Movements
		Small Business Dilemma: Assessment by the Sports Exports Company of Factors That Affect the British Pound's Value
	Chapter 6: Exchange Rate History and the Role of Governments
		Exchange Rate Systems
		Government Intervention - The Process
		Exchange Rate Target Zones
		Intervention as a Policy Tool
		The Trilemma of Government Policy Choice
		A Brief History of Exchange Rates
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Assessment of Government Influence on Exchange Rates
		Small Business Dilemma: Assessment of Central Bank Intervention by the Sports Exports Company
	Chapter 7: Forecasting Exchange Rates
		Why Firms Forecast Exchange Rates
		Forecasting Techniques
		Forecasting Services
		Evaluation of Forecast Performance
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Forecasting Exchange Rates
		Small Business Dilemma: Exchange Rate Forecasting by the Sports Exports Company
	Chapter 8: International Arbitrage and Covered Interest Rate Parity
		International Arbitrage
		Interest Rate Parity (IRP)
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnote
		Blades PLC Case Study: Assessment of Potential Arbitrage Opportunities
		Small Business Dilemma: Assessment of Prevailing Spot and Forward Rates by the Sports Exports Company
	Chapter 9: Relationships between Inflation, Interest Rates and Exchange Rates
		Purchasing Power Parity (PPP)
		International Fisher Effect (IFE)
		Comparison of the IRP, PPP and IFE Theories
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Assessment of Purchasing Power Parity
		Small Business Dilemma: Assessment of the IFE by the Sports Exports Company
		Appendix 9*: Further Notes on Exchange Rate Models
		Part II: Integrative Problem
		Part II: Essays/Discussion and Academic Articles
Part III: Exchange Rate Risk Management
	Chapter 10: Measuring Exposure to Exchange Rate Fluctuations
		Is Exchange Rate Risk Relevant?
		Types of Exposure
		Transaction Exposure
		Economic Exposure
		Translation Exposure
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Blades PLC Case Study: Assessment of Exchange Rate Exposure
		Small Business Dilemma: Assessment of Exchange Rate Exposure by the Sports Exports Company
	Chapter 11: Market Insurance: Currency Derivatives
		Overview
		Forward Market
		Currency Futures Market
		Currency Swap Market
		Currency Options Market
		Currency Call Options
		Currency Put Options
		Contingency Graphs for Currency Options
		Lowering the Cost of Options: Conditional and Barrier Options and Collars
		Option Types
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Use of Currency Derivative Instruments
		Small Business Dilemma: Use of Currency Futures and Options by the Sports Exports Company
		Appendix 11A*: Currency Option Pricing
		Appendix 11B: Currency Option Combinations
	Chapter 12: Non-Market Methods of Transaction Management
		Transaction Exposure
		Non-Market Methods for Reducing Transaction Exposure
		Market Methods for Reducing Transaction Exposure
		Limitations of Hedging
		Hedging Long-Term Transaction Exposure
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Blades PLC Case Study: Management of Transaction Exposure
		Small Business Dilemma: Hedging Decisions by the Sports Exports Company
		Appendix 12: Calculating the Optimal Size of a Cross-Currency Hedge: The Hedge Ratio
	Chapter 13: Economic and Translation Exposure Management
		Economic Exposure
		A Case Study in Hedging Economic Exposure
		Hedging Exposure to Fixed Assets
		Managing Translation Exposure
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnote
		Blades PLC Case Study: Assessment of Economic Exposure
		Small Business Dilemma: Hedging the Sports Exports Company's Economic Exposure to Exchange Rate Risk
		Part III: Integrative Problem
		Part III: Essays/Discussion and Academic Articles
Part IV: Long-Term Asset and Liability Management
	Chapter 14: Foreign Direct Investment
		The Big Picture
		Investment Appraisal - The Modern Approach
		Motives for Foreign Direct Investment
		Benefits of International Diversification
		Host Government Views of Foreign Direct Investment
		Investment Agreements
		Subsidiary versus Parent Perspective
		Empirical Studies
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Consideration of Foreign Direct Investment
		Small Business Dilemma: Foreign Direct Investment Decision by the Sports Exports Company
		Appendix 14: Incorporating International Tax Laws in the Investment Decision
	Chapter 15: Country Risk Analysis
		Why Country Risk Analysis Is Important
		Political Risk Factors
		Financial Risk Factors
		Techniques to Assess Country Risk
		Measuring Country Risk
		Comparing Risk Ratings among Countries
		Market Approach to Country Risk Rating
		Incorporating Country Risk in Capital Budgeting
		Reducing Exposure to Host Government Takeovers
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Endnotes
		Blades PLC Case Study: Country Risk Assessment
		Small Business Dilemma: Country Risk Analysis at the Sports Exports Company
	Chapter 16: Long-Term Financing
		Long-Term Financing Decision
		Cost of Debt Financing
		Assessing the Exchange Rate Risk of Debt Financing
		Reducing Exchange Rate Risk
		Market Methods
		Interest Rate Risk from Debt Financing
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Blades PLC Case Study: Use of Long-Term Foreign Financing
		Small Business Dilemma: Long-Term Financing Decision by the Sports  Exports Company
		Part IV: Integrative Problem
		Part IV: Essays/Discussion and Academic Articles
Part V: Short-Term Asset and Liability Management
	Chapter 17: Financing International Trade
		Payment Methods for International Trade
		Trade Finance Methods
		Government Agencies for International Trade
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Blades PLC Case Study: Assessment of International Trade financing in Thailand
		Small Business Dilemma: Ensuring Payment for Products Exported by the Sports Exports Company
	Chapter 18: Short-Term Financing
		Sources of Short-Term Financing
		Internal Financing by MNCs
		Why MNCs Consider Foreign Financing
		Determining the Effective Financing Rate
		Criteria Considered for Foreign Financing
		Actual Foreign Financing
		Financing with a Portfolio of Currencies
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Blades PLC Case Study: Use of Foreign Short-Term Financing
		Small Business Dilemma: Short-Term Financing by the Sports Exports Company
	Chapter 19: International Cash Management
		Cash Flow Analysis - Subsidiary Perspective
		Subsidiary Liquidity Management
		Centralized Cash Management
		Techniques to Optimize Cash Flows
		Complications in Optimizing Cash Flow
		Investing Excess Cash
		Summary
		Critical Debate
		Self Test
		Questions and Exercises
		Blades PLC Case Study: International Cash Management
		Small Business Dilemma: Cash Management at the Sports Exports Company
		Part V: Integrative Problem
		Part V: Essays/Discussion and Academic Articles
	Chapter 20: Concluding Comments
		The Significance of International Financial Management
		Summary of the Book
		Advances
		Remaining Issues
		Endnotes
Appendix A: Answers to Self-Test Questions
Appendix B: Statistics and Project Support
Glossary
Index