Multinational finance : evaluating opportunities, costs, and risks of operations

 Content: Part I The International Financial Environment  Preface Acknowledgments  Chapter 1 An Introduction to Multinational Finance  Executive Summary 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  Executive Summary 2.1 Integration of the World's Markets 2.2 Balance-of-Payments Statistics 2.3 Exchange Rate Systems 2.5 The Global Financial Crisis of 2008 2.6 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 3 Foreign Exchange and Eurocurrency Markets  Executive Summary 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 The Empirical Behavior of Exchange Rates 3.6 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 4 The International Parity Conditions and their Consequences  Executive Summary 4.1 The Law of One Price 4.2 Exchange Rate Equilibrium 4.3 Interest Rate Parity and Covered Interest Arbitrage 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 Suggested Readings Appendix 4-A Continuous Compounding Problems  Part II Derivative Securities for Financial Risk Management   Chapter 5 Currency Futures and Futures Markets  Executive Summary 5.1 Financial Futures Exchanges 5.2 The Operation of Futures Markets 5.3 Futures Contracts 5.4 Forward versus Futures Market Hedges 5.5 Futures Hedges Using Cross Exchange Rates 5.6 Hedging with Currency Futures 5.7 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 6 Currency Options and Options Markets  Executive Summary 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 (Advanced) 6.6 Summary Key Terms Conceptual Questions Problems Suggested Readings Appendix 6-A Currency Option Valuation Key Terms Problems Suggested Readings  Chapter 7 Currency Swaps and Swaps Markets  Executive Summary 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 Suggested Readings  Part III Managing the Risks of Multinational Operations   Chapter 8 Multinational Treasury Management  Executive Summary 8.1 Determining the Firm's Financial Goals and Strategies 8.2 Managing the Corporation's International Trade 8.3 Financing the Corporation's International Trade 8.4 Managing the Multinational Corporation's Cash Flows 8.5 Currency Risk Management in the Multinational Corporation 8.6 Summary Key Terms Conceptual Questions Problems Suggested Readings Appendix 8-A The Rationale for Hedging Currency Risk Key Terms Conceptual Questions Problems Suggested Readings  Chapter 9 Managing Transaction Exposure to Currency Risk  Executive Summary 9.1 An Example of Transaction Exposure to Currency Risk 9.2 Managing Transaction Exposures Internally 9.4 Treasury Management in Practice 9.5 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 10 Managing Operating Exposure to Currency Risk  Executive Summary 10.1 Operating Exposures to Currency Risk 10.2 The Exposure of Shareholders' Equity 10.3 Managing Operating Exposure in the Financial Markets 10.4 Managing Operating Exposure through Operations 10.5 Pricing Strategy and the Firm's Competitive Environment 10.6 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 11 Managing Translation Exposure and Accounting for Financial Transactions  Executive Summary 11.1 The Current Rate Method of FAS #52 11.2 Corporate Hedging of Translation Exposure 11.3 Accounting for Financial Market Transactions 11.4 Accounting, Disclosure, and Corporate Hedging Activities 11.5 Summary Key Terms Conceptual Questions Problems Suggested Readings  Part IV Valuation and the Structure of Multinational Operations   Chapter 12 Foreign Market Entry and Country Risk Management  Executive Summary 12.1 Strategic Entry into International Markets 12.2 Country Risk Assessment 12.4 Protecting the Multinational's Competitive Advantages 12.5 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 13 Multinational Capital Budgeting  Executive Summary 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 Suggested Reading  Chapter 14 Multinational Capital Structure and Cost of Capital  Executive Summary 14.1 Capital Structure and the Cost of Capital 14.2 Project Valuation and the Cost of Capital 14.3 The Cost of Capital on Multinational Operations 14.4 Sources of Funds for Multinational Operations 14.5 The International Evidence on Capital Structure 14.6  Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 15 Taxes and Multinational Corporate Strategy  Executive Summary 15.1 The Objectives of National Tax Policy 15.2 Types of Taxation 15.3 U.S. Taxation of Foreign-Source Income 15.4 Taxes and Organizational Form 15.5 Transfer Pricing and Tax Planning 15.6 Taxes and the Location of Foreign Assets and Liabilities Taxes and the Location of the Surviving Parent in Cross-Border M&A 15.7 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 16 Real Options and Cross-Border Investment Strategy  Executive Summary 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 a Complement to NPV 16.6 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 17 Corporate Governance and the International Market for Corporate Control  Executive Summary 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 Suggested Readings  Part V International Portfolio Investment and Asset Pricing   Chapter 18 International Capital Markets  Executive Summary 18.1 Domestic and International Bond Markets 18.2 Domestic and International Stock Markets 18.3 International Investment Vehicles 18.4 Share Prices in International Markets 18.5 Asset Allocation Policy and Investment Style 18.6 Cross-Border Financial Statement Analysis 18.7 Summary Key Terms Conceptual Questions Problems Suggested Readings  Chapter 19 International Portfolio Diversification  Executive Summary 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 Suggested Readings  Chapter 20 International Asset Pricing  Executive Summary 20.1 The International Capital Asset Pricing Model (IAPM) 20.2 Factor Models and Arbitrage Pricing Theory (APT) 20.3 Factor Models for International Assets 20.4 Momentum Strategies 20.5 Contemporary Asset Pricing Models 20.6 Summary Key Terms Conceptual Questions Problems Suggested Readings Notes Solutions Symbols and Acronyms Useful Rules and Formulas Useful Websites Glossary Index