Multinational Financial Management

by Shapiro, Alan C.

• ISBN13: 9780471366102
• ISBN10: 0471366102
• Edition: 6th
• Format: Hardcover
• Copyright: 1999-11-01
• Publisher: WILEY JOHN & SONS INC

Summary

International business activity is not new. The transfer of goods and services across national borders has been taking place for thousands of years, antedating even Joseph's advice to the rulers of Egypt to establish that nation as the granary of the Middle East. Since the end of World War II, however, international business has undergone a revolution out of which has emerged what is probably the most important economic phenomenon of the latter half of the 20th century: the multinational corporation. The sixth edition of Multinational Financial Management provides the conceptual framework within which key financial decisions of the multinational firm can be analyzed. The emphasis throughout the book is on taking advantage of being a multinational corporation. Using real-world examples and illustrations of corporate practices, the text demonstrates to students the value of making judgments with a solid theoretical foundation. Beyond the traditional coverage of corporate finance, key elements including multiple currency, exchange rates, differing tax systems, and political risks such as nationalization and expropriation are explored. New to This EditionExtensive discussion of the Asian currency crisisExamination of international differences in corporate governanceExploration of the eurocurrencyAdditional coverage of the European Monetary UnionCompletely updated real-world examples that provide actual applications of financial concepts and theoriesNew cases and end-of-chapter problemsSupplements Instructor's Manual with Solutions and Test Bank This all-inclusive ancillary contains lecture outlines and objectives, key points, suggested answers to discussion questions and solutions to all end-of-chapter problems. This manual also includes a test bank completely revised and updated for the sixth edition by Joseph Greco of California State University-Fullerton. PowerPoint Lecture Presentation is available by downloading it from the comprehensive finance Web site at http://www.wiley.com/college/shapiro6E

Table of Contents

Preface	xv
Introduction: Multinational Enterprise and Multinational Financial Management	1	(46)
PART ONE ENVIRONMENT OF INTERNATIONAL FINANCIAL MANAGEMENT	47	(216)
The Determination of Exchange Rates	49	(36)
The International Monetary System	85	(31)
The Balance of Payments and International Economic Linkages	116	(26)
The Foreign Exchange Market	142	(30)
Currency Futures and Options Markets	172	(34)
Parity Conditions in International Finance and Currency Forecasting	206	(57)
Part One Case Studies	250	(13)
PART TWO FOREIGN EXCHANGE RISK MANAGEMENT	263	(126)
Measuring Accounting Exposure	265	(17)
Managing Accounting Exposure	282	(34)
Measuring Economic Exposure	316	(28)
Managing Economic Exposure	344	(45)
Part Two Case Studies	368	(21)
PART THREE MULTINATIONAL WORKING CAPITAL MANAGEMENT	389	(114)
Financing Foreign Trade	391	(30)
Current Asset Management and Short-Term Financing	421	(41)
Managing the Multinational Financial System	462	(41)
Part Three Case Study	497	(6)
PART FOUR FINANCING FOREIGN OPERATIONS	503	(148)
International Financing and International Financial Markets	505	(51)
Special Financing Vehicles	556	(33)
International Banking Trends and Strategies	589	(29)
The Cost of Capital for Foreign Investments	618	(33)
Part Four Case Studies	647	(4)
PART FIVE FOREIGN INVESTMENT ANALYSIS	651	(132)
International Portfolio Investment	653	(25)
Corporate Strategy and Foreign Direct Investment	678	(40)
Capital Budgeting for the Multinational Corporation	718	(29)
The Measurement and Management of Political Risk	747	(36)
Part Five Case Studies	778	(5)
Glossary	783	(16)
Index	799