Multinational business finance

✍ Scribed by Eiteman, David K;Stonehill, Arthur I;Moffett, Michael H

• Publisher: Pearson. ©2016
• Year: 2015;2016
• Tongue: English
• Leaves: 618
• Series: Always learning;Pearson series in finance
• Edition: 14e édition
• Category: Library

✦ Synopsis

Renowned for its authoritative, comprehensive coverage of contemporary international finance,Multinational Business Financetrains the leaders of tomorrow's multinational enterprises to recognize and capitalize on the unique characteristics of global markets. Because the job of a manager is to make financial decisions that increase firm value, the authors have embedded real-world mini-cases throughout to apply chapter concepts to the types of situations managers of multinational firms face. TheFourteenth Edition, now with MyFinanceLab, attempts to capture the rapid evolution of our global marketplace, taking a closer look at the types of organizations that permeate the widespread arena, competition and opportunities in emerging markets, and how financial leadership can integrate the strategic and financial challenges that global businesses face today.KEY TOPICS:Multinational Financial Management: Challenges and Opportunities; The International Monetary System; The Balance of Payments; Financial Goals and Corporate Governance; The Foreign Exchange Market; International Parity Conditions; Foreign Currency Futures and Options; Interest Rate Derivatives and Swaps; Exchange Rate Determination and Forecasting; Transaction Exposure; Translation Exposure; Operating Exposure; The Global Cost and Availability of Capital; Raising Equity and Debt Globally; Multinational Tax Management; International Trade Finance; Foreign Direct Investment and Political Risk; Multinational Capital Budgeting and Cross-Border AcquisitionsMARKET:For the leaders of tomorrow's multinational enterprises who will recognize and capitalize on the unique characteristics of global markets.

✦ Table of Contents

Cover......Page 1
Title Page......Page 8
Copyright Page......Page 9
Preface......Page 10
Acknowledgments......Page 14
About the Authors......Page 17
Contents......Page 20
PART 1 Global Financial Environment......Page 26
Chapter 1 Multinational Financial Management: Opportunities and Challenges......Page 27
Financial Globalization and Risk......Page 28
The Global Financial Marketplace......Page 29
The Theory of Comparative Advantage......Page 36
What Is Different about International Financial Management?......Page 38
Market Imperfections: A Rationale for the Existence of the Multinational Firm......Page 39
The Globalization Process......Page 40
MINI-CASE: Crowdfunding Kenya......Page 44
Questions......Page 47
Problems......Page 48
Internet Exercises......Page 52
Chapter 2 The International Monetary System......Page 53
History of the International Monetary System......Page 54
IMF Classification of Currency Regimes......Page 58
Fixed versus Flexible Exchange Rates......Page 62
A Single Currency for Europe: The Euro......Page 64
Emerging Markets and Regime Choices......Page 67
Globalizing the Chinese Renminbi......Page 69
Summary Points......Page 73
MINI-CASE: Iceland—A Small Country in a Global Crisis......Page 74
Questions......Page 79
Problems......Page 80
Internet Exercises......Page 81
Chapter 3 The Balance of Payments......Page 82
Fundamentals of BOP Accounting......Page 83
The Accounts of the Balance of Payments......Page 85
BOP Impacts on Key Macroeconomic Rates......Page 93
Trade Balances and Exchange Rates......Page 95
Capital Mobility......Page 97
Summary Points......Page 102
MINI-CASE: Global Remittances......Page 103
Questions......Page 107
Problems......Page 108
Internet Exercises......Page 111
Who Owns the Business?......Page 112
The Goal of Management......Page 115
Publicly Traded versus Privately Held: The Global Shift......Page 121
Corporate Governance......Page 124
Summary Points......Page 132
MINI-CASE: Luxury Wars—LVMH vs. Hermès......Page 133
Questions......Page 137
Problems......Page 138
Internet Exercises......Page 141
PART 2 Foreign Exchange Theory and Markets......Page 142
Chapter 5 The Foreign Exchange Market......Page 143
Structure of the Foreign Exchange Market......Page 144
Transactions in the Foreign Exchange Market......Page 148
Size of the Foreign Exchange Market......Page 151
Foreign Exchange Rates and Quotations......Page 154
Summary Points......Page 163
MINI-CASE: The Venezuelan Bolivar Black Market......Page 164
Problems......Page 167
Internet Exercises......Page 170
Chapter 6 International Parity Conditions......Page 172
Prices and Exchange Rates......Page 173
Interest Rates and Exchange Rates......Page 180
Forward Rate as an Unbiased Predictor of the Future Spot Rate......Page 189
Prices, Interest Rates, and Exchange Rates in Equilibrium......Page 190
MINI-CASE: Mrs. Watanabe and the Japanese Yen Carry Trade......Page 192
Questions......Page 195
Problems......Page 196
Internet Exercises......Page 200
Appendix: An Algebraic Primer to International Parity Conditions......Page 202
Chapter 7 Foreign Currency Derivatives: Futures and Options......Page 206
Foreign Currency Futures......Page 207
Currency Options......Page 209
Option Pricing and Valuation......Page 217
Advanced Topic: Currency Option Pricing Sensitivity......Page 218
MINI-CASE: KiKos and the South Korean Won......Page 225
Questions......Page 228
Problems......Page 229
Internet Exercises......Page 231
Appendix: Currency Option Pricing Theory......Page 232
Chapter 8 Interest Rate Risk and Swaps......Page 234
Interest Rate Foundations......Page 235
Interest Rate Risk......Page 242
Interest Rate Futures and FRAs......Page 245
Interest Rate Swaps......Page 247
Cross-Currency Swaps......Page 251
Summary Points......Page 255
MINI-CASE: Argentina and the Vulture Funds......Page 256
Problems......Page 261
Internet Exercises......Page 265
Chapter 9 Foreign Exchange Rate Determination......Page 266
Exchange Rate Determination: The Theoretical Thread......Page 267
Currency Market Intervention......Page 272
Disequilibrium: Exchange Rates in Emerging Markets......Page 278
Forecasting in Practice......Page 283
MINI-CASE: Russian Ruble Roulette......Page 288
Questions......Page 291
Problems......Page 292
Internet Exercises......Page 296
PART 3 Foreign Exchange Exposure......Page 298
Types of Foreign Exchange Exposure......Page 299
Why Hedge?......Page 300
Ganado’s Transaction Exposure......Page 305
Risk Management in Practice......Page 314
Advanced Topics in Hedging......Page 315
MINI-CASE: China Noah Corporation......Page 317
Questions......Page 323
Problems......Page 324
Internet Exercises......Page 329
Appendix: Complex Option Hedges......Page 330
Chapter 11 Translation Exposure......Page 338
Overview of Translation......Page 339
Translation Methods......Page 340
Ganado Corporation’s Translation Exposure......Page 343
Managing Translation Exposure......Page 347
MINI-CASE: McDonald’s, Hoover Hedges, and Cross-Currency Swaps......Page 350
Questions......Page 352
Problems......Page 353
Internet Exercises......Page 355
A Multinational’s Operating Exposure......Page 356
Measuring Operating Exposure: Ganado Germany......Page 361
Strategic Management of Operating Exposure......Page 366
Proactive Management of Operating Exposure......Page 369
MINI-CASE: Toyota’s European Operating Exposure......Page 375
Problems......Page 378
Internet Exercises......Page 381
PART 4 Financing the Global Firm......Page 382
Financial Globalization and Strategy......Page 383
International Portfolio Theory and Diversification......Page 386
The Demand for Foreign Securities: The Role of International Portfolio Investors......Page 392
The Cost of Capital for MNEs Compared to Domestic Firms......Page 397
Summary Points......Page 400
MINI-CASE: Novo Industri A/S (Novo)......Page 401
Questions......Page 404
Problems......Page 405
Internet Exercises......Page 408
Chapter 14 Raising Equity and Debt Globally......Page 409
Designing a Strategy to Source Capital Globally......Page 410
Optimal Financial Structure......Page 411
Optimal Financial Structure and the Multinational......Page 412
Raising Equity Globally......Page 414
Depositary Receipts......Page 418
Private Placement......Page 424
Foreign Equity Listing and Issuance......Page 425
Raising Debt Globally......Page 428
Summary Points......Page 433
MINI-CASE: Petrobrás of Brazil and the Cost of Capital......Page 434
Questions......Page 437
Problems......Page 438
Internet Exercises......Page 441
Appendix: Financial Structure of Foreign Subsidiaries......Page 442
Chapter 15 Multinational Tax Management......Page 446
Tax Principles......Page 447
Multinational Tax Management......Page 454
Tax Havens and International Offshore Financial Centers......Page 460
Google: An Illustrative Case of Profit Repositioning......Page 462
Corporate Inversion......Page 464
Summary Points......Page 465
MINI-CASE: Apple’s Global iTax Strategy......Page 466
Questions......Page 470
Problems......Page 471
Internet Exercises......Page 473
The Trade Relationship......Page 475
Benefits of the System......Page 478
Key Documents......Page 480
Government Programs to Help Finance Exports......Page 487
Trade Financing Alternatives......Page 488
Forfaiting: Medium- and Long-Term Financing......Page 491
Summary Points......Page 493
MINI-CASE: Crosswell International and Brazil......Page 494
Problems......Page 497
Internet Exercises......Page 500
PART 5 Foreign Investments and Investment Analysis......Page 502
Chapter 17 Foreign Direct Investment and Political Risk......Page 503
Sustaining and Transferring Competitive Advantage......Page 504
The OLI Paradigm and Internationalization......Page 506
Deciding Where to Invest......Page 508
Modes of Foreign Investment......Page 509
Illustrative Case: Corporate Competition from the Emerging Markets......Page 513
Predicting Political Risk......Page 515
Country-Specific Risk: Transfer Risk......Page 521
Country-Specific Risk: Cultural and Institutional Risk......Page 524
Global-Specific Risk......Page 527
Summary Points......Page 530
MINI-CASE: Strategic Portfolio Theory, Black Swans, and [Avoiding] Being the Turkey......Page 531
Questions......Page 533
Internet Exercises......Page 534
Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions......Page 535
Complexities of Budgeting for a Foreign Project......Page 536
Illustrative Case: Cemex Enters Indonesia......Page 539
Real Option Analysis......Page 552
Project Financing......Page 553
Cross-Border Mergers and Acquisitions......Page 554
MINI-CASE: Elan and Royalty Pharma......Page 560
Questions......Page 564
Problems......Page 565
Internet Exercises......Page 569
Answers to Selected End-of-Chapter Problems......Page 570
B......Page 574
C......Page 575
D......Page 578
F......Page 579
H......Page 581
I......Page 582
M......Page 583
O......Page 584
R......Page 585
S......Page 586
T......Page 587
U......Page 588
Y......Page 589
A......Page 590
B......Page 591
C......Page 592
D......Page 595
E......Page 596
F......Page 598
G......Page 600
I......Page 601
M......Page 604
O......Page 606
P......Page 607
R......Page 609
S......Page 610
T......Page 611
V......Page 613
Z......Page 614

✦ Subjects

Economics;Finance;Business;Nonfiction;Textbooks