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

Preface     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 CorporationCORPORATION     1.5 Summary     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     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     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     Appendix 4A: Continuous Compounding     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     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     Appendix 6A: Currency Option Valuation     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     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     Appendix 8A: The Rationale for Hedging Currency Risk     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     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     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     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     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     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     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     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     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     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     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     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     Appendix: Useful Rules and Formulas     Glossary     Index