Description
WILEY INDIA International Financial Management 2016 Edition by ALAN C. SHAPIRO & PETER MOLES
Designed for students taking courses in international finance, international financial management, multinational finance and multinational financial management, International Financial Management offers a variety of real-life examples, both numerical and institutional, that demonstrate the use of financial analysis and reasoning in solving international financial problems. PrefaceSelected Currencies and SymbolsSymbols and Acronyms Part 1 The Global Financial Management Environment1 Introduction to International Financial Management1.1 The Rise of the International Company 1.2 The Internationalization of Business and Finance1.3 International Financial Management: Theory and Practice1.4 Outline of the TextAppendix 1A The Origins and Consequences of International Trade 2 Exchange Rate Determination2.1 Setting the Equilibrium Spot Exchange Rate2.2 Expectations and the Asset Market Model of Exchange Rates2.3 The Fundamentals of Central Bank Intervention2.4 The Equilibrium Approach to Exchange Rates2.5 Summary and Conclusions 3 The International Monetary System3.1 Alternative Exchange Rate Systems3.2 A Brief History of the International Monetary System 3.3 The European Monetary System and Monetary Union3.4 Emerging Market Currency Crises3.5 Summary and Conclusions 4 Currencies: Expectations, Parities and Forecasting4.1 Arbitrage and the Law of One Price4.2 Purchasing Power Parity4.3 The Fisher Effect4.4 The International Fisher Effect4.5 Interest Rate Parity Theory4.6 The Relationship Between the Forward Rate and the Future Spot Rate4.7 Currency Forecasting4.8 Summary and Conclusions 5 The International Monetary System and The Balance of Payments5.1 Balance-of-Payments Categories5.2 The International Flow of Goods, Services and Capital5.3 Coping with the Current-Account Deficit5.4 Summary and Conclusions 6 Country Risk6.1 Measuring Political Risk6.2 Economic and Political Factors Underlying Country Risk6.3 Country Risk Analysis in International Lending6.4 Summary and Conclusions Part 2 Currency and Derivatives Markets7 Currency Markets7.1 Organization of the Foreign Exchange Market7.2 The Spot Market7.3 The Forward Market7.4 Summary and Conclusions 8 Currency Derivatives8.1 Futures Contracts8.2 Currency Options8.3 Reading Currency Futures and Options Prices8.4 Summary and ConclusionsAppendix 8A Option Pricing Using Black-ScholesAppendix 8B Put-Call Option Interest Rate Parity 9 Interest Rate Derivatives9.1 Interest Rate and Currency Swaps9.2 Interest Rate Forwards and Futures 9.3 Structured Notes9.4 Credit Default Swaps9.5 Summary and Conclusions Part 3 Managing Currency Risks10 Translation and Transaction Exposure10.1 Alternative Measures of Foreign Exchange Exposure10.2 Alternative Currency Translation Methods10.3 Transaction Exposure10.4 Designing a Hedging Strategy10.5 Managing Translation Exposure10.6 Managing Transaction Exposure10.7 Summary and ConclusionsAppendix 10A Currency Translation in Practice 11 Economic Exposure11.1 Foreign Exchange Risk and Economic Exposure11.2 The Economic Consequences of Exchange Rate Changes11.3 Identifying Economic Exposure11.4 Calculating Economic Exposure11.5 An Operational Measure of Exchange Risk11.6 Managing Operating Exposure11.7 Summary and Conclusions Part 4 Financing International Operations12 International And Domestic Capital Markets12.1 Corporate Sources and Uses of Funds12.2 Domestic Capital Markets as International Financial Centers12.3 Development Banks12.4 Project Finance12.5 Summary and Conclusions 13 International Financial Markets13.1 The Eurocurrency Market13.2 Eurobonds13.3 Note Issuance Facilities and Euronotes13.4 Euro-Commercial Paper13.5 The Asia currency Market13.6 Summary and Conclusions 14 The International Cost of Capital14.1 The Cost of Equity Capital14.2 The Weighted Average Cost of Capital for Foreign Projects14.3 Discount Rates for Foreign Investments14.4 The Cost of Debt Capital14.5 Establishing a Worldwide Capital Structure14.6 Valuing Low-Cost Financing Opportunities14.7 Summary and Conclusions Part 5 International Capital Budgeting15 International Portfolio Investment15.1 The Risks and Benefits of International Equity Investing15.2 International Bond Investing15.3 Optimal International Asset Allocation15.4 Measuring the Total Return from Foreign Portfolio Investing15.5 Measuring Exchange Risk on Foreign Securities15.6 Summary and Conclusions 16 Strategies For Foreign Direct Investment16.1 Theory of the Multinational Corporation16.2 The Strategy of Multinational Enterprise16.3 Designing a Global Expansion Strategy16.4 Summary and Conclusions 17 International Capital Budgeting17.1 Basics of Capital Budgeting17.2 Issues in Foreign Investment Analysis17.3 Foreign Project Appraisal: The Case of International Machine Tools17.4 Political Risk Analysis17.5 Growth Options and Project Evaluation17.6 Summary and ConclusionsAppendix 17A Managing Political Risk Part 6 International Management of Working Capital18 International Trade Management18.1 Payment Terms in International Trade18.2 Documents in International Trade18.3 Financing Techniques in International Trade18.4 Government Sources of Export Financing and Credit Insurance18.5 Countertrade18.6 Summary and Conclusions 19 Managing Working Capital19.1 International Cash Management19.2 Accounts Receivable Management19.3 Inventory Management19.4 Short-Term Financing19.5 Summary and Conclusions 20 Financial Management for The Global Enterprise20.1 The Value of the Multinational Financial System20.2 Intercompany Fund-Flow Mechanisms: Costs and Benefits20.3 Designing a Global Remittance Policy20.4 Summary and Conclusions GlossaryIndex