Foundations Of Multinational Financial Management

Focused on real-life decision making in an international context, this text demystifies and simplifies multinational financial management by showing that it is a natural and logical extension of the principles and valuation framework provided by domestic corporate financial management-but with dimensions unique to international finance.

* Integrates economic and political factors underlying exchange rate determination. * Uses the balance-of-payments framework to assess economic links among nations. * Presents a comprehensive discussion of the foreign exchange market. * Discusses the key parity conditions in international finance that relate interest rates, exchange rates, and inflation rates, and the underlying arbitrage considerations that determine them-along with numerous real-world applications. * Presents distinctions between real and nominal exchange rates and between accounting and economic exposure and their significance for exchange risk management. * Provides a comprehensive discussion of the mechanisms multinational firms use to manage interaffiliate fund flows on a global basis. * Presents the underpinnings of financial markets and the implications for international capital flows. * Presents specialized financing and risk management techniques. * Discusses the assessment of the cost of capital for foreign investments. * Discusses the nature and consequences of international portfolio investment, including emerging market investments. * Presents the development of global strategies of multinational corporations. * Provides the means for analyzing foreign investments. * Covers political risk measurement and management. * Includes a number of distinctive pedagogical features including real-world examples, vignettes, illustrations, and hundreds of realistic end-of-chapter questions and problems.

Grounded in modern financial theory, this text provides a conceptual framework wherein the key financial decisions of the multinational firm can be analyzed. As in previous editions, the book's approach treats international financial management as a natural and logical extension of principles learned in the foundations of financial management courses. This fifth edition has been updated and improved to reflect the most recent developments in the field.

For MBA courses in International Corporate Finance, International Business Finance, and Multinational Financial Management. This book focuses upon the basic principles which together make a "toolkit" for analysis of issues in international finance. It also captures the importance and excitement of international financial management and highlights the new approaches in the field. It covers the theoretical foundations of international financial decisions and contains extensive applications of the theory to financial practice with a main objective of developing critical thinking skills regarding the theory and practice of international financial management.

Focused on real--life decision making in an international context, this text demystifies and simplifies multinational financial management in a clear, conceptual framework. The approach is to treat international financial management as a natural and logical extension of the principles and valuation framework provided by domestic corporate financial management to account for dimensions unique to international finance.