Multinational Business Finance

ISBN-10: 0136096689

ISBN-13: 9780136096689

Edition: 12th 2010

List price: $230.20
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Renowned for its authoritative, comprehensive coverage of contemporary international finance, this market-leading text trains the leaders of tomorrow's multinational enterprises to recognize and capitalize on the unique characteristics of global markets. Because the job of a manager is to make financial decisions that increase firm value, the authors have embedded real-world mini-cases throughout to apply chapter concepts to the types of situations managers of multinational firms face.
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Book details

List price: $230.20
Edition: 12th
Copyright year: 2010
Publisher: Addison Wesley
Publication date: 7/31/2009
Binding: Hardcover
Pages: 784
Size: 8.00" wide x 10.25" long x 1.25" tall
Weight: 2.948
Language: English

Michael H. Moffett is an associate professor of finance at Thunderbird, the Garvin Graduate School of International Management. He received a BA in economics from the University of Texas at Austin, an MS in resource economics from Colorado State University, and an MA and a PhD in economics from the University of Colorado, Boulder. In addition to teaching, Moffett has authored, coauthored, or contributed to six books and fifteen other publications. Some of the publications his articles have appeared in include the "Journal of Financial and Quantitative Analysis, "the "Journal of Applied Corporate Finance, "and the "Journal of International Money and Finance." Arthur I. Stonehill is an emeritus professor of finance and international business at Oregon State University, where he taught for twenty-four years. After receiving his PhD in business administration from the University of California, Berkeley, he was awarded honorary doctorates from the Aarhus School of Business and the Copenhagen Business School in Denmark, and from Lund University in Sweden. Stonehill has also authored or coauthored nine books and twenty-five other publications. His articles have appeared in numerous publications including "Financial Management," the "Journal of International Business Studies," and "California Management Review." David K. Eiteman is an emeritus professor of finance at the John E. Anderson Graduate School of Management at UCLA. He received his PhD in finance from Northwestern University and is a former president of the International Trade and Finance Association, Society for Economics and Management in China, and the Western Finance Association. Besidesteaching, Eiteman has also authored or coauthored four books and twenty-nine other publications. His articles have appeared in various publications such as the "Journal of Finance, "the "International Trade Journal, "and the "Financial Analysts Journal."

Global Financial Environment
Globalization and the Multinational Enterprise
Globalization and Creating Value in the Multinational Enterprise
The Theory of Comparative Advantage
What Is Different about Global Financial Management?
Market Imperfections: A Rationale for the Existence of the Multinational Firm
The Globalization Process
Summary Points
Porsche Changes Tack
Questions, Problems, Internet Exercises
Financial Goals and Corporate Governance
Who Owns the Business?
What Is the Goal of Management?
Corporate Governance
Summary Points
Governance Failure at Enron
Questions, Problems, Internet Exercises
The International Monetary System
History of the International Monetary System
Contemporary Currency Regimes
Emerging Markets and Regime Choices
The Birth of a European Currency: The Euro
Exchange Rate Regimes: What Lies Ahead?
Summary Points
The Revaluation of the Chinese Yuan
Questions, Problems, Internet Exercises
The Balance of Payments
Typical Balance of Payments Transactions
Fundamentals of Balance of Payments Accounting
The Accounts of the Balance of Payments
The Capital and Financial Accounts
The Balance of Payments in Total
The Balance of Payments Interaction with Key Macroeconomic Variables
Trade Balances and Exchange Rates
Capital Mobility
Summary Points
Turkey's Kriz (A): Deteriorating Balance of Payments
Questions, Problems, Internet Exercises
Current Multinational Financial Challenges: The Credit Crisis of 2007-2009
The Seeds of Crisis: Subprime Debt
The Transmission Mechanism: Securitization and Derivatives of Securitized Debt
The Fallout: The Crisis of 2007 and 2008
The Remedy: Prescriptions for an Infected Global Financial Organism
Summary Points
Letting Go of Lehaman Brothers
Questions, Problems, Internet Exercises
Foreign Exchange Theory and Markets
The Foreign Exchange Market
Geographical Extent of the Foreign Exchange Market
Functions of the Foreign Exchange Market
Market Participants
Transactions in the Interbank Market
Foreign Exchange Rates and Quotations
Summary Points
The Venezuelan Bolivar Black Market
Questions, Problems, Internet Exercises
International Parity Conditions
Prices and Exchange Rates
Interest Rates and Exchange Rates
Forward Rate as an Unbiased Predictor of the Future Spot Rate
Prices, Interest Rates, and Exchange Rates in Equilibrium
Summary Points
Currency Pass-Through at Porsche
Questions, Problems, Internet Exercises
An Algebraic Primer to International Parity Conditions
Foreign Currency Derivatives
Foreign Currency Futures
Currency Options
Foreign Currency Speculation
Option Pricing and Valuation
Currency Option Pricing Sensitivity
Prudence in Practice
Summary Points
Warren Buffett's Love-Hate Relationship with Derivatives
Questions, Problems, Internet Exercises
Currency Option Pricing Theory
Interest Rate and Currency Swaps
Defining Interest Rate Risk
Management of Interest Rate Risk
Trident Corporation: Swapping to Fixed Rates
Currency Swaps
Trident Corporation: Swapping Floating Dollars into Fixed Rate Swiss Francs
Counterparty Risk
Summary Points
McDonald's Corporation's British Pound Exposure
Questions, Problems, Internet Exercises
Foreign Exchange Rate Determination and Forecasting
Exchange Rate Determination: The Theoretical Thread
The Asset Market Approach to Forecasting
Disequilibrium: Exchange Rates in Emerging Markets
Illustrative Case: The Asian Crisis
Illustrative Case: The Argentine Crisis of 2002
Forecasting in Practice
Summary Points
JPMorgan Chase's Forecasting Accuracy
Questions, Problems, Internet Exercises
Foreign Exchange Exposure
Transaction Exposure
Types of Foreign Exchange Exposure
Why Hedge?
Measurement of Transaction Exposure
Trident's Transaction Exposure
Management of an Account Payable
Risk Management in Practice
Summary Points
Xian-Janssen Pharmaceutical (China) and the Euro
Questions, Problems, Internet Exercises
Complex Options
Operating Exposure
Attributes of Operating Exposure
Illustrating Operating Exposure: Trident
Strategic Management of Operating Exposure
Proactive Management of Operating Exposure
Contractual Approaches: Hedging the Unhedgeable
Summary Points
Toyota's European Operating Exposure
Questions, Problems, Internet Exercises
Translation Exposure
Overview of Translation
Translation Methods
Translation Example: Trident Europe
Comparing Translation Exposure with Operating Exposure
Managing Translation Exposure
Summary Points
LaJolla Engineering Services
Questions, Problems, Internet Exercises
Financing the Global Firm
The Global Cost and Availability of Captial
Weighted Average Cost of Capital
The Demand for Foreign Securities: The Role of International Portfolio Investors
The Cost of Capital for MNEs Compared to Domestic Firms
Solving a Riddle: Is the Weighted Average Cost of Capital for MNEs Really Higher Than for Their Domestic Counterparts?
Summary Points
Novo Industri A/S (Novo)
Questions, Problems, Internet Exercises
Sourcing Equity Globally
Designing a Strategy to Source Equity Globally
Foreign Equity Listing and Issuance
Effect of Cross-Listing and Equity Issuance on Share Price
Barriers to Cross-Listing and Selling Equity Abroad
Alternative Instruments to Source Equity in Global Markets
Summary Points
Petrobr�s of Brazil and the Cost of Capital
Questions, Problems, Internet Exercises
Sourcing Debt Globally
Optimal Financial Structure
Optimal Financial Structure and the MNE
Financial Structure of Foreign Subsidiaries
International Debt Markets
Summary Points
Tirstrup BioMechanics (Denmark): Raising Dollar Debt
Questions, Problems, Internet Exercises
Foreign Investment Decisions
International Portfolio Theory and Diversification
International Diversification and Risk
Internationalizing the Domestic Portfolio
National Markets and Asset Performance
Summary Points
Is Modern Portfolio Theory Outdated?
Questions, Problems, Internet Exercises
Foreign Direct Investment Theory and Political Risk
Sustaining and Transferring Competitive Advantage
The OLI Paradigm and Internalization
Deciding Where to Invest
How to Invest Abroad: Modes of Foreign Involvement
Foreign Direct Investment Originating in Developing Countries
Foreign Direct Investment and Political Risk
Assessing Political Risk
Firm-Specific Risks
Country-Specific Risks: Transfer Risk
Country-Specific Risks: Cultural and Institutional Risks
Global-Specific Risks
Summary Points
Mattel's Chinese Sourcing Crisis of 2007
Questions, Problems, Internet Exercises
Multinational Capital Budgeting
Complexities of Budgeting for a Foreign Project
Project versus Parent Valuation
Illustrative Case: Cemex Enters Indonesia
Real Option Analysis
Project Financing
Summary Points
Trident's Chinese Market Entry-An Application of Real Option Analysis
Questions, Problems, Internet Exercises
Managing Multinational Operations
Multinational Tax Management
Tax Principles
Transfer Pricing
Tax Management at Trident
Tax Haven Subsidiaries and International Offshore Financial Centers
Summary Points
Stanley Works and Corporate Inversion
Questions, Problems, Internet Exercises
Working Capital Management
Trident Brazil's Operating Cycle
Trident's Repositioning Decisions
Constraints on Respositioning Funds
Conduits for Moving Funds by Unbundling Them
International Dividend Remittances
Net Working Capital
International Cash Management
Financing Working Capital
Summary Points
Honeywell and Pakistan International Airways
Questions, Problems, Internet Exercises
International Trade Finance
The Trade Relationship
The Trade Dilemma
Benefits of the System
Letter of Credit (L/C)
Bill of Lading (B/L)
Example: Documentation in a Typical Trade Transaction
Government Programs to Help Finance Exports
Trade Financing Alternatives
Forfaiting: Medium- and Long-Term Financing
Summary Points
Crosswell International's Precious Ultra-Thin Diapers
Questions, Problems, Internet Exercises
Answers to Selected Problems
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