Now in its twelfth edition, Multinational Financial Management provides a comprehensive and up-to-date survey of all essential areas of the international financial market environment, including the determination of the cost of capital for international projects, capital budgeting, financial structure, transfer pricing, risk management, and portfolio investment. Written with the large multinational corporation in mind, this leading textbook offers a wealth of numerical and institutional examples that demonstrate the use of financial analysis and reasoning to solve complex international financial problems.
Multinational Financial Management is a self-encompassing treatment of multinational financial management that simplifies complex concepts, provides the theoretical knowledge required to examine decision problems, and supplies the practical analytical techniques needed to clarify the ambiguous guidelines commonly used by international financial executives. Throughout the text, the authors show how the international dimension of finance creates difficulties that are not encountered in domestic finance, such as multiple currencies, segmented capital markets, political risks, and international taxation issues.
Multinational Financial Management, Twelfth Edition, remains the ideal textbook for upper-level undergraduate and master's degree courses in International Finance and International Financial Management, as well as bank management, financial management, and other executive development programs.
Table of Contents
Preface xxi
About the Authors xxvii
List of Figures xxix
List of Tables xxxiii
World Currencies and Symbols xxxvii
Acronyms and Symbols xliii
PART I The International Financial Management Environment
1 Introduction: Multinational Corporations and Financial Management 3
2 The Determination of Exchange Rates 40
3 The International Monetary System 67
4 Parity Conditions in International Finance and Currency Forecasting 107
5 The Balance of Payments and International Economic Linkages 145
PART II The Foreign Exchange and Derivative Markets
6 The Foreign Exchange Market 175
7 Currency Futures and Options Markets 201
8 Currency, Interest rate, and Credit Derivatives and Swaps 228
PART III Foreign Exchange Risk Management
9 Measuring and Managing Translation and Transaction Exposure 261
10 Measuring and Managing Economic Exposure 305
PART IV The International Capital Markets and Portfolio Management
11 International Financing and National Capital Markets 345
12 The Euromarkets 371
13 International Portfolio Management 392
PART V International Capital Budgeting
14 Country Risk Analysis 419
15 The Cost of Capital for Foreign Investments 452
16 Corporate Strategy and Foreign Direct Investment 484
17 Capital Budgeting for the Multinational Corporation 503
18 Managing the Internal Capital Markets of Multinational Corporations 539
Glossary G-1
Index I-1
