International Financial Management.
Eun, Cheol.
International Financial Management. - 10th ed. - 1 online resource (1127 pages)
Cover -- Half-title Page -- Series Titles Page -- Title Page -- Copyright Page -- Dedication Page -- About the Authors -- Preface -- Key Features -- Ancillary Materials -- Acknowledgments -- Contents in Brief -- Contents -- PART ONE: Foundations of International Financial Management -- CHAPTER 1 Globalization and the Multinational Firm -- What's Special about International Finance? -- Foreign Exchange Risk -- Political Risk -- Expanded Opportunity Set -- Market Imperfections -- Goals for International Financial Management -- Globalization of the World Economy: Major Trends and Developments -- Emergence of Globalized Financial Markets -- Emergence of the Euro as a Global Currency -- Europe's Sovereign Debt Crisis of 2010 -- Trade Liberalization and Economic Integration -- Privatization -- Global Financial Crisis of 2008-2009 -- Brexit -- COVID-19 Pandemic -- Climate Change -- Multinational Corporations -- Summary -- MINI CASE : Nike and Sweatshop Labor -- APPENDIX 1A : Gain from Trade: The Theory of ComparativeAdvantage -- CHAPTER 2 International Monetary System -- Evolution of the International Monetary System -- Bimetallism: Before 1875 -- Classical Gold Standard: 1875-1914 -- Interwar Period: 1915-1944 -- Bretton Woods System: 1945-1972 -- The Flexible Exchange Rate Regime: 1973-Present -- The Current Exchange Rate Arrangements -- Cryptocurrencies -- European Monetary System -- The Euro and the European Monetary Union -- A Brief History of the Euro -- What Are the Benefits of Monetary Union? -- Costs of Monetary Union -- Prospects of the Euro: Some Critical Questions -- The Mexican Peso Crisis -- The Asian Currency Crisis -- Origins of the Asian Currency Crisis -- Lessons from the Asian Currency Crisis -- The Argentine Peso Crisis -- The Rise of the Chinese Renminbi -- Fixed versus Flexible Exchange Rate Regimes -- Summary. MINI CASE : Grexit or Not? -- CHAPTER 3 Balance of Payments -- Balance of Payments Accounting -- Balance of Payments Accounts -- The Current Account -- INTERNATIONAL FINANCE IN PRACTICE: Squid Game and the Rise of Global Services Trade -- The Capital Account -- The Financial Account -- Statistical Discrepancy -- Official Reserve Account -- The Balance of Payments Identity -- Balance of Payments Trends in Major Countries -- Summary -- MINI CASE: Trends in China's Balance of Payments -- APPENDIX 3A: The Relationship between Balance of Payments andNational Income Accounting -- CHAPTER 4 Corporate Governance Around the World -- Governance of the Public Corporation: Key Issues -- The Agency Problem -- Remedies for the Agency Problem -- Board of Directors -- Incentive Contracts -- INTERNATIONAL FINANCE IN PRACTICE: When Boards Are All in the Family -- Concentrated Ownership -- Accounting Transparency -- Debt -- Shareholder Activism -- Overseas Stock Listings -- Market for Corporate Control -- Law and Corporate Governance -- Consequences of Law -- Ownership and Control Pattern -- Private Benefits of Control -- Capital Markets and Valuation -- Corporate Governance Reform -- Objectives of Reform -- Political Dynamics -- The Sarbanes-Oxley Act -- The Cadbury Code of Best Practice -- The Dodd-Frank Act -- What Are Companies For? -- Summary -- MINI CASE: Parmalat: Europe's Enron -- MINI CASE: The Petrobras Scandal -- PART TWO: The Foreign Exchange Market, Exchange Rate Determination, and Currency Derivatives -- CHAPTER 5 The Market for Foreign Exchange -- Function and Structure of the FX Market -- INTERNATIONAL FINANCE IN PRACTICE: Electronification of the Foreign Exchange Market -- FX Market Participants -- Correspondent Banking Relationships -- INTERNATIONAL FINANCE IN PRACTICE: Chinese Yuan's Road to Internationalization -- The Spot Market. Spot Rate Quotations -- Cross-Exchange Rate Quotations -- The Bid-Ask Spread -- Spot FX Trading -- The Cross-Rate Trading Desk -- Triangular Arbitrage -- Spot Foreign Exchange Market Microstructure -- The Forward Market -- Forward Rate Quotations -- Long and Short Forward Positions -- Forward Premium -- Forward Cross-Exchange Rates -- Non-Deliverable Forward Contracts -- Swap Transactions -- Exchange-Traded Currency Funds -- Summary -- Shrewsbury Herbal Products Ltd -- MINI CASE: Shrewsbury Herbal Products Ltd -- CHAPTER 6 International Parity Relationships and Forecasting Foreign Exchange Rates -- Interest Rate Parity -- Covered Interest Arbitrage -- Interest Rate Parity and Exchange Rate Determination -- Currency Carry Trade -- Reasons for Deviations from Interest Rate Parity -- Purchasing Power Parity -- PPP Deviations and the Real Exchange Rate -- INTERNATIONAL FINANCE IN PRACTICE: What the Big Mac Index Says About Currencies -- Evidence on Purchasing Power Parity -- Fisher Effects -- Forecasting Exchange Rates -- Efficient Market Approach -- Fundamental Approach -- Technical Approach -- Performance of the Forecasters -- Summary -- MINI CASE: Turkish Lira and Purchasing Power Parity -- APPENDIX 6A: Purchasing Power Parity and Exchange RateDetermination -- CHAPTER 7 Futures and Options on Foreign Exchange -- Futures Contracts: Some Preliminaries -- Currency Futures Markets -- Basic Currency Futures Relationships -- Options Contracts: Some Preliminaries -- Currency Options Markets -- Currency Futures Options -- Basic Option-Pricing Relationships at Expiration -- American Option-Pricing Relationships -- European Option-Pricing Relationships -- Binomial Option-Pricing Model -- European Option-Pricing Formula -- Empirical Tests of Currency Options -- Summary -- MINI CASE: The Options Speculators -- PART THREE: Foreign Exchange Exposure and Management. CHAPTER 8 Management of Transaction Exposure -- Three Types of Exposure -- Should the Firm Hedge? -- Hedging Foreign Currency Receivables -- Forward Market Hedge -- Money Market Hedge -- Options Market Hedge -- Comparison of Hedging Strategies -- Hedging Foreign Currency Payables -- Forward Market Hedge -- Money Market Hedge -- Options Market Hedge -- Comparison of Hedging Strategies -- Cross-Hedging Minor Currency Exposure -- Hedging Contingent Exposure -- Hedging Recurrent Exposure with Swap Contracts -- Hedging through Invoice Currency -- Hedging via Lead and Lag -- Exposure Netting -- What Risk Management Products Do Firms Use? -- Summary -- MINI CASE: Airbus' Dollar Exposure -- CASE: Richard May's Options -- CHAPTER 9 Management of Economic Exposure -- How to Measure Economic Exposure -- Measuring Asset Exposure -- Hedging Asset Exposure -- Operating Exposure: Definition -- Illustration of Operating Exposure -- Determinants of Operating Exposure -- Managing Operating Exposure -- Selecting Low-Cost Production Sites -- Flexible Sourcing Policy -- Diversification of the Market -- R& -- D Efforts and Product Differentiation -- INTERNATIONAL FINANCE IN PRACTICE: Case Study: How BMW Dealt with Exchange RateRisk -- Financial Hedging -- CASE APPLICATION: Exchange Risk Management at Merck -- Summary -- MINI CASE: Economic Exposure of Albion Computers PLC -- CHAPTER 10 Management of Translation Exposure -- Translation Methods -- Current/Noncurrent Method -- Monetary/Nonmonetary Method -- Temporal Method -- Current Rate Method -- U.S. Generally Accepted Accounting Principles -- FASB 8 -- FASB 52 -- FASB ASC 830 -- The Mechanics of the FASB ASC 830 Translation Process -- Highly Inflationary Economies -- International Accounting Standards -- CASE APPLICATION: Consolidation of Accounts According to FASB ASC 830:The Centralia Corporation. Management of Translation Exposure -- Translation Exposure versus Transaction Exposure -- Hedging Translation Exposure -- Balance Sheet Hedge -- Derivatives Hedge -- Translation Exposure versus Operating Exposure -- MINI CASE: Sundance Sporting Goods Inc. -- Summary -- MINI CASE: Sundance Sporting Goods Inc. -- PART FOUR: World Financial Markets and Institutions -- CHAPTER 11 International Banking and Money Market -- International Banking Services -- The World's Largest Banks -- Reasons for International Banking -- Types of International Banking Offices -- Correspondent Bank -- Representative Offices -- Foreign Branches -- Subsidiary and Affiliate Banks -- Edge Act Banks -- Offshore Banking Centers -- International Banking Facilities -- Capital Adequacy Standards -- International Money Market -- Eurocurrency Market -- Eurocredits -- Forward Rate Agreements -- Euronotes -- Eurocommercial Paper -- CME SOFR Futures Contracts -- International Debt Crisis -- The Problem -- Debt-for-Equity Swaps -- The Solution -- The Asian Crisis -- Global Financial Crisis -- The Credit Crunch -- Impact of the Financial Crisis -- Summary -- MINI CASE: Detroit Motors' Latin American Expansion -- APPENDICES 11A: Eurocurrency Creation -- APPENDICES 11B: MBS, SIV, CDO, and CDS -- Mortgage-Backed Securities and Structured Investment Vehicles -- Collateralized Debt Obligations -- Credit Defaults Swaps -- CHAPTER 12 International Bond Market -- The World's Bond Markets: A Statistical Perspective -- Foreign Bonds and Eurobonds -- Currency Distribution, Nationality, and Type of Issuer -- INTERNATIONAL FINANCE IN PRACTICE: Saudi Arabia Debuts on the International BondMarket -- Bearer Bonds and Registered Bonds -- National Security Regulations -- Security Regulations that Ease Bond Issuance -- Global Bonds -- Types of Instruments -- Straight Fixed-Rate Issues. Euro-Medium-Term Notes.
9781266349911
International business enterprises-Finance.
Electronic books.
658.15/99
International Financial Management. - 10th ed. - 1 online resource (1127 pages)
Cover -- Half-title Page -- Series Titles Page -- Title Page -- Copyright Page -- Dedication Page -- About the Authors -- Preface -- Key Features -- Ancillary Materials -- Acknowledgments -- Contents in Brief -- Contents -- PART ONE: Foundations of International Financial Management -- CHAPTER 1 Globalization and the Multinational Firm -- What's Special about International Finance? -- Foreign Exchange Risk -- Political Risk -- Expanded Opportunity Set -- Market Imperfections -- Goals for International Financial Management -- Globalization of the World Economy: Major Trends and Developments -- Emergence of Globalized Financial Markets -- Emergence of the Euro as a Global Currency -- Europe's Sovereign Debt Crisis of 2010 -- Trade Liberalization and Economic Integration -- Privatization -- Global Financial Crisis of 2008-2009 -- Brexit -- COVID-19 Pandemic -- Climate Change -- Multinational Corporations -- Summary -- MINI CASE : Nike and Sweatshop Labor -- APPENDIX 1A : Gain from Trade: The Theory of ComparativeAdvantage -- CHAPTER 2 International Monetary System -- Evolution of the International Monetary System -- Bimetallism: Before 1875 -- Classical Gold Standard: 1875-1914 -- Interwar Period: 1915-1944 -- Bretton Woods System: 1945-1972 -- The Flexible Exchange Rate Regime: 1973-Present -- The Current Exchange Rate Arrangements -- Cryptocurrencies -- European Monetary System -- The Euro and the European Monetary Union -- A Brief History of the Euro -- What Are the Benefits of Monetary Union? -- Costs of Monetary Union -- Prospects of the Euro: Some Critical Questions -- The Mexican Peso Crisis -- The Asian Currency Crisis -- Origins of the Asian Currency Crisis -- Lessons from the Asian Currency Crisis -- The Argentine Peso Crisis -- The Rise of the Chinese Renminbi -- Fixed versus Flexible Exchange Rate Regimes -- Summary. MINI CASE : Grexit or Not? -- CHAPTER 3 Balance of Payments -- Balance of Payments Accounting -- Balance of Payments Accounts -- The Current Account -- INTERNATIONAL FINANCE IN PRACTICE: Squid Game and the Rise of Global Services Trade -- The Capital Account -- The Financial Account -- Statistical Discrepancy -- Official Reserve Account -- The Balance of Payments Identity -- Balance of Payments Trends in Major Countries -- Summary -- MINI CASE: Trends in China's Balance of Payments -- APPENDIX 3A: The Relationship between Balance of Payments andNational Income Accounting -- CHAPTER 4 Corporate Governance Around the World -- Governance of the Public Corporation: Key Issues -- The Agency Problem -- Remedies for the Agency Problem -- Board of Directors -- Incentive Contracts -- INTERNATIONAL FINANCE IN PRACTICE: When Boards Are All in the Family -- Concentrated Ownership -- Accounting Transparency -- Debt -- Shareholder Activism -- Overseas Stock Listings -- Market for Corporate Control -- Law and Corporate Governance -- Consequences of Law -- Ownership and Control Pattern -- Private Benefits of Control -- Capital Markets and Valuation -- Corporate Governance Reform -- Objectives of Reform -- Political Dynamics -- The Sarbanes-Oxley Act -- The Cadbury Code of Best Practice -- The Dodd-Frank Act -- What Are Companies For? -- Summary -- MINI CASE: Parmalat: Europe's Enron -- MINI CASE: The Petrobras Scandal -- PART TWO: The Foreign Exchange Market, Exchange Rate Determination, and Currency Derivatives -- CHAPTER 5 The Market for Foreign Exchange -- Function and Structure of the FX Market -- INTERNATIONAL FINANCE IN PRACTICE: Electronification of the Foreign Exchange Market -- FX Market Participants -- Correspondent Banking Relationships -- INTERNATIONAL FINANCE IN PRACTICE: Chinese Yuan's Road to Internationalization -- The Spot Market. Spot Rate Quotations -- Cross-Exchange Rate Quotations -- The Bid-Ask Spread -- Spot FX Trading -- The Cross-Rate Trading Desk -- Triangular Arbitrage -- Spot Foreign Exchange Market Microstructure -- The Forward Market -- Forward Rate Quotations -- Long and Short Forward Positions -- Forward Premium -- Forward Cross-Exchange Rates -- Non-Deliverable Forward Contracts -- Swap Transactions -- Exchange-Traded Currency Funds -- Summary -- Shrewsbury Herbal Products Ltd -- MINI CASE: Shrewsbury Herbal Products Ltd -- CHAPTER 6 International Parity Relationships and Forecasting Foreign Exchange Rates -- Interest Rate Parity -- Covered Interest Arbitrage -- Interest Rate Parity and Exchange Rate Determination -- Currency Carry Trade -- Reasons for Deviations from Interest Rate Parity -- Purchasing Power Parity -- PPP Deviations and the Real Exchange Rate -- INTERNATIONAL FINANCE IN PRACTICE: What the Big Mac Index Says About Currencies -- Evidence on Purchasing Power Parity -- Fisher Effects -- Forecasting Exchange Rates -- Efficient Market Approach -- Fundamental Approach -- Technical Approach -- Performance of the Forecasters -- Summary -- MINI CASE: Turkish Lira and Purchasing Power Parity -- APPENDIX 6A: Purchasing Power Parity and Exchange RateDetermination -- CHAPTER 7 Futures and Options on Foreign Exchange -- Futures Contracts: Some Preliminaries -- Currency Futures Markets -- Basic Currency Futures Relationships -- Options Contracts: Some Preliminaries -- Currency Options Markets -- Currency Futures Options -- Basic Option-Pricing Relationships at Expiration -- American Option-Pricing Relationships -- European Option-Pricing Relationships -- Binomial Option-Pricing Model -- European Option-Pricing Formula -- Empirical Tests of Currency Options -- Summary -- MINI CASE: The Options Speculators -- PART THREE: Foreign Exchange Exposure and Management. CHAPTER 8 Management of Transaction Exposure -- Three Types of Exposure -- Should the Firm Hedge? -- Hedging Foreign Currency Receivables -- Forward Market Hedge -- Money Market Hedge -- Options Market Hedge -- Comparison of Hedging Strategies -- Hedging Foreign Currency Payables -- Forward Market Hedge -- Money Market Hedge -- Options Market Hedge -- Comparison of Hedging Strategies -- Cross-Hedging Minor Currency Exposure -- Hedging Contingent Exposure -- Hedging Recurrent Exposure with Swap Contracts -- Hedging through Invoice Currency -- Hedging via Lead and Lag -- Exposure Netting -- What Risk Management Products Do Firms Use? -- Summary -- MINI CASE: Airbus' Dollar Exposure -- CASE: Richard May's Options -- CHAPTER 9 Management of Economic Exposure -- How to Measure Economic Exposure -- Measuring Asset Exposure -- Hedging Asset Exposure -- Operating Exposure: Definition -- Illustration of Operating Exposure -- Determinants of Operating Exposure -- Managing Operating Exposure -- Selecting Low-Cost Production Sites -- Flexible Sourcing Policy -- Diversification of the Market -- R& -- D Efforts and Product Differentiation -- INTERNATIONAL FINANCE IN PRACTICE: Case Study: How BMW Dealt with Exchange RateRisk -- Financial Hedging -- CASE APPLICATION: Exchange Risk Management at Merck -- Summary -- MINI CASE: Economic Exposure of Albion Computers PLC -- CHAPTER 10 Management of Translation Exposure -- Translation Methods -- Current/Noncurrent Method -- Monetary/Nonmonetary Method -- Temporal Method -- Current Rate Method -- U.S. Generally Accepted Accounting Principles -- FASB 8 -- FASB 52 -- FASB ASC 830 -- The Mechanics of the FASB ASC 830 Translation Process -- Highly Inflationary Economies -- International Accounting Standards -- CASE APPLICATION: Consolidation of Accounts According to FASB ASC 830:The Centralia Corporation. Management of Translation Exposure -- Translation Exposure versus Transaction Exposure -- Hedging Translation Exposure -- Balance Sheet Hedge -- Derivatives Hedge -- Translation Exposure versus Operating Exposure -- MINI CASE: Sundance Sporting Goods Inc. -- Summary -- MINI CASE: Sundance Sporting Goods Inc. -- PART FOUR: World Financial Markets and Institutions -- CHAPTER 11 International Banking and Money Market -- International Banking Services -- The World's Largest Banks -- Reasons for International Banking -- Types of International Banking Offices -- Correspondent Bank -- Representative Offices -- Foreign Branches -- Subsidiary and Affiliate Banks -- Edge Act Banks -- Offshore Banking Centers -- International Banking Facilities -- Capital Adequacy Standards -- International Money Market -- Eurocurrency Market -- Eurocredits -- Forward Rate Agreements -- Euronotes -- Eurocommercial Paper -- CME SOFR Futures Contracts -- International Debt Crisis -- The Problem -- Debt-for-Equity Swaps -- The Solution -- The Asian Crisis -- Global Financial Crisis -- The Credit Crunch -- Impact of the Financial Crisis -- Summary -- MINI CASE: Detroit Motors' Latin American Expansion -- APPENDICES 11A: Eurocurrency Creation -- APPENDICES 11B: MBS, SIV, CDO, and CDS -- Mortgage-Backed Securities and Structured Investment Vehicles -- Collateralized Debt Obligations -- Credit Defaults Swaps -- CHAPTER 12 International Bond Market -- The World's Bond Markets: A Statistical Perspective -- Foreign Bonds and Eurobonds -- Currency Distribution, Nationality, and Type of Issuer -- INTERNATIONAL FINANCE IN PRACTICE: Saudi Arabia Debuts on the International BondMarket -- Bearer Bonds and Registered Bonds -- National Security Regulations -- Security Regulations that Ease Bond Issuance -- Global Bonds -- Types of Instruments -- Straight Fixed-Rate Issues. Euro-Medium-Term Notes.
9781266349911
International business enterprises-Finance.
Electronic books.
658.15/99