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| List of Figures | |
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| List of Tables | |
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| Preface and Acknowledgments | |
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| About the Authors | |
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| The Global Financial Environment | |
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| Introduction | |
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| TIAA-CREF Goes Global with Corporate Governance | |
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| Reasons to Study International Finance | |
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| Company Goals and Functions of Financial Management | |
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| Multinational Companies and their Performance | |
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| Principles of Global Finance | |
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| Agency Theory and Corporate Governance | |
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| Environmental Differences | |
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| The Structure of this Book | |
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| Summary | |
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| Questions | |
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| References | |
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| What Is a National Company? | |
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| Motives for World Trade and Foreign Investment | |
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| The Effect of Foreign Investment on Exports | |
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| Motives for Foreign Trade | |
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| Economic Integration | |
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| Motives for Foreign Investment | |
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| A Synthesis of Foreign Trade and Investment Theories | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| The Fruits of Free Trade Under the World Trade Organization | |
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| The Balance of Payments | |
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| Opportunity Cost and Comparative Advantage | |
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| An Overview of the Balance of Payments | |
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| Balance-of-Payments Accounts | |
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| The Actual Balance of Payments | |
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| How to Reduce a Trade Deficit | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| USA-China Trade Relations | |
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| The International Monetary System | |
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| The Euro - A Story of Change | |
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| A Successful Foreign-Exchange System | |
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| A Brief History of the International Monetary System | |
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| The International Monetary Fund | |
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| The European Monetary Union | |
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| Proposals for Further International Monetary Reform | |
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| Summary | |
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| Questions | |
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| References | |
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| The Mexican Peso Crisis of December 1994 | |
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| Corporate Foreign-Exchange Risk Management | |
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| The Foreign-Exchange Market and Parity Conditions | |
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| The Volume of Foreign-Exchange Trading | |
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| Major Participants in the Exchange Market | |
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| Spot Exchange Quotation: The Spot Exchange Rate | |
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| Forward Exchange Quotation: The Forward Exchange Rate | |
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| International Parity Conditions | |
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| Arbitrages | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| The Big Mac Hamburger Standard: February 2003 | |
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| Currency Futures and Options | |
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| Derivatives Risks | |
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| The Currency Futures Market | |
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| The Currency Options Market | |
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| Futures Options | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Merck's Use of Currency Options | |
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| Financial Swaps | |
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| Why have Gillette and GE Chosen a Higher Cost of Funding? | |
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| The Emergence of the Swap Market | |
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| Plain Vanilla Swaps | |
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| Motivations for Swaps | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Regulations of Derivatives Markets | |
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| Exchange Rate Forecasting | |
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| Mundell Wins Nobel Prize in Economics | |
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| Measuring Exchange Rate Changes | |
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| The Forecasting Needs of the Multinational Company | |
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| Forecasting Floating Exchange Rates | |
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| Forecasting Fixed Exchange Rates | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| General Motors Operations in Mexico, and the Peso Crisis | |
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| Managing Transaction Exposure and Economic Exposure | |
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| Avon's Actions to Protect Against Volatile Currencies | |
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| The Basic Nature of Foreign-Exchange Exposures | |
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| Transaction Exposure Management | |
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| Economic Exposure Management | |
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| Currency Exposure Management Practices | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Western Mining's Economic Exposure Management | |
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| Translation Exposure Management | |
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| Main Features of Accounting Exposure | |
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| Translation Rules | |
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| FASBs 8 and 52 | |
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| Hedging Translation Exposure | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Dell Mercosur | |
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| The Global Financing Strategy | |
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| International Financial Markets | |
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| Foreign Investors Load Up with Asia's Shares | |
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| Eurocurrency Markets | |
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| The Eurocurrency Interbank Market | |
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| The Asian Currency Market | |
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| The International Bond Market | |
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| The International Equity Market | |
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| Long-Term Capital Flows to Developing Countries | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| The Rise and Fall of the US Stock Market | |
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| International Banking Issues and Country Risk Analysis | |
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| Argentina's Currency Crisis | |
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| International Banking Operations | |
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| International Loans | |
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| Country Risk Analysis | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| The World Bank | |
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| Financing Foreign Trade | |
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| US Export-Import Bank Seeks Private Investors | |
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| Basic Documents in Foreign Trade | |
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| The Payment Terms of Export Transactions | |
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| Sources of Financing Foreign Trade | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Arms Dealers Get Creative with Offsets | |
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| Financing Foreign Investment | |
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| Failed US-Vietnamese Joint Ventures | |
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| Internal Sources of Funds | |
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| External Sources of Funds | |
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| Development Banks | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| IBM's Strategic Alliances | |
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| Global Investment Strategy | |
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| International Working Capital Management | |
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| An Efficient Global Treasury Structure | |
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| The Basic Concepts of Working Capital Management | |
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| Cash Management | |
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| Accounts Receivable Management | |
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| Inventory Management | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Navistar International's Netting System | |
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| International Portfolio Investment | |
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| LE Group Shows how Korea Inc. Might Restructure | |
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| Key Terminology | |
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| The Benefits of International Diversification | |
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| Methods of International Diversification | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Investing in DaimlerChrysler in the USA | |
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| Corporate Strategy and Foreign Direct Investment | |
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| How Can Companies Get the Most Out of Their Foreign Investment? | |
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| An Overview of Foreign Direct Investment | |
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| Foreign Direct Investment in Developing Countries | |
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| Cross-Border Mergers and Acquisitions | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| BP's Acquisition of Amoco | |
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| International Capital Budgeting Decisions | |
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| External Factors Affecting Foreign Project Analysis | |
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| The Foreign Investment Decision-Making Process | |
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| Portfolio Theory | |
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| Capital Budgeting Theory and Practice | |
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| Political Risk Management | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Multinational Capital Budgeting Practices | |
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| The Cost of Capital for Foreign Projects | |
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| GM's Target Debt Ratio in its Overseas Expansion | |
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| The Weighted Average Cost of Capital | |
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| The Optimum Capital Structure | |
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| The Marginal Cost of Capital and Investment Decisions | |
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| Cultural Values and Capital Structure | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Do Multinational Firms Have Lower Debt Ratios than Domestic Firms? | |
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| Corporate Performance of Foreign Operations | |
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| Offshore Workers Increase IBM's Profits | |
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| The Global Control System and Performance Evaluation | |
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| International Taxation | |
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| Transfer Pricing and Tax Planning | |
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| Summary | |
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| Questions | |
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| Problems | |
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| References | |
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| Advanced Technology's Ethical Dilemma | |
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| Web Resources and Internet Exercises | |
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| Answers to Selected End-of-Chapter Problems | |
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| Glossary | |
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| Index | |