Multinational Business Finance

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

• Publisher: Pearson Education
• Year: 2021
• Tongue: English
• Leaves: 640
• Edition: 15
• Category: Library

✦ Table of Contents

Cover
Title Page
Copyright Page
Preface
About the Authors
Brief Contents
Contents
PART 1 Global Financial Environment
Chapter 1 Multinational Financial Management: Opportunities and Challenges
1.1 The Global Financial Marketplace
1.2 The Theory of Comparative Advantage
1.3 What Is Different about International Financial Management?
1.4 The Globalization Process
Summary Points
Mini-Case: Crowdfunding Kenya
Questions
Problems
Internet Exercises
Chapter 2 The International Monetary System
2.1 History of the International Monetary System
2.2 Fixed Versus Flexible Exchange Rates
2.3 The Impossible Trinity
2.4 A Single Currency for Europe: The Euro
2.5 Emerging Markets and Regime Choices
Summary Points
Mini-Case: The Internationalization (or Not) of the Chinese Renminbi
Questions
Problems
Internet Exercises
Chapter 3 The Balance of Payments
3.1 Fundamentals of BOP Accounting
3.2 The Accounts of the Balance of Payments
3.3 BOP Impacts on Key Macroeconomic Rates
3.4 Trade Balances and Exchange Rates
3.5 Capital Mobility
Summary Points
Mini-Case: Global Remittances
Questions
Problems
Internet Exercises
Chapter 4 Financial Goals and Corporate Governance
4.1 Business Ownership
4.2 Publicly Traded Versus Privately Held: The Global Shift
4.3 Corporate Governance
Summary Points
Mini-Case: Volkswagen’s Defeat Devices and Stakeholder Control
Questions
Problems
Internet Exercises
PART 2 Foreign Exchange Theory and Markets
Chapter 5 The Foreign Exchange Market
5.1 Functions of the Foreign Exchange Market
5.2 Structure of the Foreign Exchange Market
5.3 Transactions in the Foreign Exchange Market
5.4 Foreign Exchange Rates and Quotations
Summary Points
Mini-Case: The Venezuelan Bolivar Black Market
Questions
Problems
Internet Exercises
Chapter 6 International Parity Conditions
6.1 Prices and Exchange Rates
6.2 Interest Rates and Exchange Rates
6.3 Forward Rate as an Unbiased Predictor of the Future Spot Rate
6.4 Prices, Interest Rates, and Exchange Rates in Equilibrium
Summary Points
Mini-Case: Mrs. Watanabe and the Japanese Yen Carry Trade
Questions
Problems
Internet Exercises
Appendix: An Algebraic Primer to International Parity Conditions
Chapter 7 Foreign Currency Derivatives: Futures and Options
7.1 Foreign Currency Futures
7.2 Foreign Currency Options
7.3 Option Pricing and Valuation
7.4 Currency Option Pricing Sensitivity
Summary Points
Mini-Case: KiKos and the South Korean Won
Questions
Problems
Internet Exercises
Appendix: Currency Option Pricing Theory
Chapter 8 Interest Rate Risk and Swaps
8.1 Interest Rate Foundations
8.2 The Cost of Debt
8.3 Interest Rate Risk
8.4 Interest Rate Futures and FRAs
8.5 Interest Rate Swaps
Summary Points
Mini-Case: Argentina and the Vulture Funds
Questions
Problems
Internet Exercises
Chapter 9 Foreign Exchange Rate Determination and Intervention
9.1 Exchange Rate Determination: The Theoretical Thread
9.2 Currency Market Intervention
9.3 Disequilibrium: Exchange Rates in Emerging Markets
9.4 Currency Forecasting in Practice
Summary Points
Mini-Case: Iceland—A Small Country in a Global Crisis
Questions
Problems
Internet Exercises
PART 3 Foreign Exchange Exposure
Chapter 10 Transaction Exposure
10.1 Types of Foreign Exchange Exposure
10.2 Why Hedge?
10.3 Transaction Exposure
10.4 Transaction Exposure Management
10.5 Transaction Exposure Management in Practice
Summary Points
Mini-Case: China Noah Corporation
Questions
Problems
Internet Exercises
Appendix A: Complex Option Hedges
Appendix B: The Optimal Hedge Ratio and Hedge Effectiveness
Chapter 11 Translation Exposure
11.1 Overview of Translation
11.2 Translation Methods
11.3 Aidan Corporation’s Translation Exposure
11.4 Managing Translation Exposure
Summary Points
Mini-Case: Electrolux of Sweden’s Currency Management
Questions
Problems
Internet Exercises
Chapter 12 Operating Exposure
12.1 A Multinational’s Operating Exposure
12.2 Measuring Operating Exposure: Aidan Turkey
12.3 Strategic Management of Operating Exposure
12.4 Proactive Management of Operating Exposure
Summary Points
Mini-Case: Brexit and Rolls-Royce
Questions
Problems
Internet Exercises
PART 4 Financing the Global Firm
Chapter 13 Global Cost and Availability of Capital
13.1 Financial Globalization and Strategy
13.2 International Portfolio Theory and Diversification
13.3 The Role of International Portfolio Investors
13.4 The Cost of Capital for MNEs Compared to Domestic Firms
13.5 Illustrative Case: Novo Industri A/S (Novo)
Summary Points
Mini-Case: Ferrari’s IPO—The Potential of the Prancing Horse
Questions
Problems
Internet Exercises
Chapter 14 Funding the Multinational Firm
14.1 Designing a Strategy to Source Capital Globally
14.2 Optimal Financial Structure
14.3 Raising Equity Globally
14.4 Depositary Receipts
14.5 Private Placement
14.6 Raising Debt Globally
14.7 Financing Foreign Subsidiaries
Summary Points
Mini-Case: CEMEX’s Debt Dilemma
Questions
Problems
Internet Exercises
Chapter 15 Multinational Tax Management
15.1 Tax Principles and Practices
15.2 Multinational Tax Management
15.3 Google: An Illustrative Case of Profit Repositioning
15.4 Global Tax Competitiveness
15.5 U.S. Tax Law Change in 2017
Summary Points
Mini-Case: Apple’s Global iTax Strategy
Questions
Problems
Internet Exercises
Chapter 16 International Trade Finance
16.1 The Trade Relationship
16.2 Key Documents
16.3 Government Programs to Help Finance Exports
16.4 Trade Financing Alternatives
16.5 Forfaiting
Summary Points
Mini-Case: Crosswell International and Brazil
Questions
Problems
Internet Exercises
PART 5 Foreign Investments and Investment Analysis
Chapter 17 Foreign Direct Investment and Political Risk
17.1 The Foreign Direct Investment Decision
17.2 Structural Choices for Foreign Market Entry
17.3 Political Risk: Definition and Classification
17.4 Financial Impacts of Political Risk
17.5 Political Risk Mitigation
Summary Points
Mini-Case: Tengiz—The Definition of Political Risk
Questions
Internet Exercises
Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions
18.1 Complexities of Budgeting for a Foreign Project
18.2 Illustrative Case: Cemex Enters Indonesia
18.3 Real Option Analysis
18.4 Project Financing
18.5 Cross-Border Mergers and Acquisitions
Summary Points
Mini-Case: Elan and Royalty Pharma
Questions
Problems
Internet Exercises
Answers to Selected End-of-Chapter Problems
Glossary
Index
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