Table of contents for Fundamentals of multinational finance / Michael H. Moffett, Arthur I. Stonehill, David. K. Eiteman.

Bibliographic record and links to related information available from the Library of Congress catalog.

Note: Contents data are machine generated based on pre-publication provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding.


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	Part 1	Global Finance Environment	1
	Chapter 1	The Globalization Process	3
		The Globalization Process	4
		Part I: The Global Financial Environment	6
		Part II: Foreign Exchange Theory & Markets	6
		Part III: Foreign Exchange Exposure Measurement & Management	7
		Part IV: Financing the Global Firm	8	
		Part V: Foreign Investment Decisions	8
		Global Finance Perspective 1.1
		A Rose by any Other Name	8
		Part VI: Managing Multinational Operations	10
		What Is the Goal of Management?	11
		Global Finance Perspective 1.2
		What Drives Value?	16
		Global Finance Perspective 1.3
		What Destroys Value?	17
		Summary of Learning Objectives 17 - 
Questions 18 - Internet Exercises 18
		Mini-Case: Corporate Governance at Brasil Telecom	20
	Chapter 2	History of Foreign Exchange Rates	22
		Currency Terminology	23	
		History of the International Monetary System	24
		Global Finance Perspective 2.1
		The Names of Monies	25
		Contemporary Currency Regimes	29
		Emerging Markets & Regime Choices	32
		The Birth of a European Currency: The Euro	36
		Exchange Rate Regimes: What Lies Ahead?	38
		Summary of Learning Objectives 39 - 
Questions 40 - Problems 41 - Internet Exercises 41
		Mini-Case: Tsar Alexander III's Russian Gold Loan 	42
	Chapter 3	The Balance of Payments	44
		Typical BOP Transactions	45
		Fundamentals of Balance of Payments Accounting	47
		The Accounts of the Balance of Payments	48
		The Balance of Payments in Total	54
		Capital Mobility	56
		Summary of Learning Objectives 58 - 
Questions 59 - Problems 60 - Internet Exercises 62
		Mini-Case: Turkey's Kriz (A): Deteriorating Balance of Payments	62
	Part 2 	Foreign Exchange Theory and Markets	65
	Chapter 4	International Parity Conditions	67
		Prices and Exchange Rates	68
		Interest Rates and Exchange Rates	74
		Forward Rate as an Unbiased Predictor of the Future Spot Rate	82
		Prices, Interest Rates, and Exchange Rates in Equilibrium 84-85	84
		Summary of Learning Objectives 85 - 
Questions 86 - Problems 86 - Internet Exercises 89
		Mini-Case: Russian Purchasing Power & Western Automakers	89
	Chapter 5	Foreign Exchange Rate Determination	92
		The Balance of Payments (BOP) Approach	94
		The Asset Market Approach to Forecasting	97
		Technical Analysis	98
		Forecasting in Practice	98
		Disequilibrium: Exchange Rates in Emerging Markets	101	
		The Asian Crisis	102
		The Russian Crisis of 1998	105
		The Brazilian Crisis of 1999	107
		Summary of Learning Objectives 110 - 
Questions 110 - Problems 111 - Internet Exercises 112
		Mini-Case: Turkey's Kriz (B): Uncovered Interest Arbitrage	113
	Chapter 6	The Foreign Exchange Market	116
		Geographical Extent of the Foreign Exchange Market	117
		Functions of the Foreign Exchange Market	118
		Market Participants	118
		Global Finance Perspective 6.1
		Iraqi Dealing for Dinars	120
		Global Finance Perspective 6.2
		Beware of Foreign Currency Trading Frauds	121
		Transactions in the Interbank Market	121
		Size of the Market	123
		Foreign Exchange Rates and Quotations	124
		Summary of Learning Objectives 132 - 
Questions 133 - Problems 134 - Internet Exercises 135
		Mini-Case: Willem Vandewater N.V. and the Euro	136
	Chapter 7	Foreign Currency Derivatives	138
		Foreign Currency Features 	139
		Currency Options	142
		Foreign Currency Speculation	145
		Global Finance Perspective 7.1
		Rogue Currency Trader at Allied Irish Bank	146
		Option Pricing and Valuation	153
		Produce in Practice	157
		Global Finance Perspective 7.2
		A Selected List of Derivative and Managerial Disasters	158
		Summary of Learning Objectives 158 - 
Questions 159 - Problems 160 - Internet Exercises 162
		Mini-Case: Rogue Trader, Nicholas Leeson	162
	Part 3	Foreign Exchange Exposure	167
	Chapter 8	Transaction Exposure	169
		Types of Foreign Exchange Exposure	170
		Why Hedge?	171
		Global Finance Perspective 8.1
		Amazon.com's Quest for Profits: 
the Role of Currency Gains/Losses	172
		Measure of Transaction Exposure	174
		Global Finance Perspective 8.2
		Examples of Corporate Objectives of Hedging	174
		Trident's Transaction Exposure	177
		Management of an Account Payable	185
		Risk Management in Practice	187
		Global Finance Perspective 8.3
		Manipulation of Currency Gains and Losses	188
		Summary of Learning Objectives 190 - 
Questions 191 - Problems 191 - Internet Exercises 193
		Mini-Case: Lufthansa's Purchase of Boeing 737s	194
	Chapter 9	Operating Exposure	196
		Attributes of Operating Exposure	197
		Global Finance Perspective 9.1
		Volvo Car	199
		Illustrating Operating Exposure: Trident	199
		Strategic Management of Operating Exposure	204
		Global Finance Perspective 9.2
		Goodyear's Response to the Mexican Peso's Devaluation	205
		Proactive Management of Operating Exposure	206
		Contractual Approaches: Hedging the Unhedgeable	211
		Summary of Learning Objectives 212 - 
Questions 212 - Problems 213 - Internet Exercises 215
		Mini-Case: Toyota's European Operating Exposure	216
	Chapter 10	Translation Exposure	218
		Overview of Translation	219
		Translation Methods	220
		Translation Example: Trident Europe	225
		Comparing Translation Exposure with Operating Exposure	230	
		Managing Translation Exposure	231	
		Summary of Learning Objectives 234 - 
Questions 234 - Problems 235 - Internet Exercises 237
		Mini-Case: Hedging the Euro Away	237
	Part 4	Financing the Global Firm	239
	Chapter 11	Global Cost and Availability of Capital	241
		Weighted Average Cost of Capital	243
		The Demand for Foreign Securities: The Role of 
International Portfolio Investors	247
		The Link Between Cost and Availability of Capital	248
		Illustrative Case: Novo Industri: A/S (Novo)	251
		Globalization of Securities Markets	256
		The Cost of Capital for MNEs Compared to Domestic Firms	257
		Solving a Riddle: Is the Weighted Average Cost of Capital for 
MNEs Really Higher than for Their Domestic Counterparts?	258
		Summary of Learning Objectives 260 - 
Questions 261 - Problems 262 - Internet Exercises 263
		Mini-Case: Bang & Olufsen & Philips N.V.	264
	Chapter 12	Sourcing Equity Globally	265
		Designing a Strategy to Source Equity Globally	266
		Foreign Equity Listing and Issuance	269
		Improving Liquidity	270
		Effect of Cross-Listing on Share Price	272
		Other Motives for Cross-Listing	273
		Barriers to Cross-Listing and Selling Equity Abroad	274
		Alternative Instruments to Source Equity in Global Markets	275
		Global Finance Perspective 12.1
		Private Equity in Argentina and the Argentine Crisis	279
		Summary of Learning Objectives 279 - 
Questions 280 - Internet Exercises 280
		Mini-Case: Deutsche Bank's Global Registered Shares	281
	Chapter 13	Financial Structure and International Debt	283
		Optimal Financial Structure	284
		Optimal Financial Structure and the MNE	285
		Financial Structure of Foreign Subsidiaries	288
		The Eurocurrency Markets	292
		International Debt Markets	294
		Global Finance Perspective 13.1
		Pricing and Structure of a Syndicated Eurocredit	295
		Project Financing	300
		Summary of Learning Objectives 301 - 
Questions 302 - Problems 304 - Internet Exercises 305
		Mini-Case: The Financing of Petrozuata	306
	Chapter 14	Interest Rate and Currency Swaps	308
		Defining Interest Rate Risk	309
		Management of Interest Rate Risk	310
		Trident Corporation: Swapping to Fixed Rates	317
		Currency Swaps	318
		Global Finance Perspective 14.1
		Caveat Emptor, Procter & Gamble's Swaps	318
		Trident Corporation: Swapping Floating Dollars into 
Fixed-Rate Swiss Francs	319
		Counterparty Risk	321
		Global Finance Perspective 14.2
		Ecuadorian Debt-for-Development	322
		Illustrative Case: A Three-Way Back-to-Back Cross-Currency Swap	323
		Summary of Learning Objectives 324 - 
Questions 324 - Problems 325 - Internet Exercises 327
		Mini-Case: McDonald's Corporation's British Pound Exposure	327
	Part 5	Foreign Investment Decisions	329
	Chapter 15	Foreign Direct Investment Theory and Strategy	331
		The Theory of Comparative Advantage	332
		Market Imperfections: A Rationale for the 
Existence of the Multinational Firm	333
		Sustaining and Transferring Competitive Advantage	334
		The OLI Paradigm and Internalization	337
		Where to Invest?	339
		How to Invest Abroad: Modes of Foreign Involvement	341
		Summary of Learning Objectives 345 - 
Questions 346 - Problems 347 - Internet Exercises 347
		Mini-Case: The Theory of Comparative Advantage	348
		Mini-Case: Benecol's Global Licensing Agreement	350
Chapter 16	Multinational Capital Budgeting	351
		Complexities of Budgeting for a Foreign Project	352
		Project Versus Parent Valuation	353
		Illustrative Case: Cemex Enters Indonesia	354
		Real Option Analysis	366
		Summary of Learning Objectives 366 - 
Questions 367 - Problems 368 - Internet Exercises 370
		Mini-Case: Trident's Chinese Market 
Entry; An Application of Real Option Analysis	371
	Chapter 17	Adjusting for Risk in Foreign Investment	373
		Defining Risk	374
		Defining, Measuring, and Managing Foreign Investment Risks	375
		Business Risks	377
		Foreign Exchange Risks	381
		Governance Risk Management	381
		Country-Specific Risks	384
		Transfer Risk	384
		Cultural Differences	388
		Global-Specific Risks	392
		Summary of Learning Objectives 394 - 
Questions 395 - Problems 396 - Internet Exercises 397
		Mini-Case: Motorola & TelSim of Turkey	398
Chapter 18	Cross-Border Mergers, Acquisitions, and Valuation	400
		Cross-Border Mergers and Acquisitions	401
		Cross-Border Acquisition Process	405
		Global Finance Perspective 18.1
		Cash or Shares in Payment	408
		Global Finance Perspective 18.2
		Clashing Corporate Cultures at 
British Petroleum and Amoco 	409
		Corporate Governance and Shareholder Rights	410
		Global Finance Perspective 18.3
		Vodaphone's Hostile Acquisition of Mannesmann	411
		Cross-Border Valuation	414
		Summary of Learning Objectives 426 - 
Questions 427 - Problems 428 - Internet Exercises 429
		Mini-Case: Cemex of Mexico Bids for Semen Gresik of Indonesia	430
	Chapter 19	International Portfolio Theory and Diversification	433
		International Diversification and Risk	434
		Internationalizing the Domestic Portfolio	437
		National Equity Market Performance	442
		Global Finance Perspective 19.1
		Should Fund Managers Hedge Currency Risk?	446
		The International Capital Asset Pricing Model	446
		Global Finance Perspective 19.2
		In Search of the Belgian Dentist	449
		Summary of Learning Objectives 449 - 
Questions 451 - Problems 452 - Internet Exercises 452
		Mini-Case: Private Equity in Latin America; The Soto Group	453
	Part 6	Managing Multinational Operations	455
	Chapter 20	Multinational Tax Management	457
		Tax Principles	458
		U.S. Taxation of Foreign Source Income	465
		Summary of Learning Objectives 474 - 
Questions 474 - Problems 476 - Internet Exercises 479
		Mini-Case: Romanian Communications and Cyprus Offshore	479
	Chapter 21	Repositioning Funds	481
		Trident's Repositioning Decisions	482
		Constraints on Positioning Funds	483
		Conduits for Moving Funds	484
		Transfer Pricing	485
		License Fees, Royalty Fees, and Shared Services	489
		Global Finance Perspective 21.1
		Transfer Prices and the Japanese Tax Authorities	490
		Global Finance Perspective 21.2
		Over- and Underinvoicing	492
 		International Dividend Remittances	492
		Leads and Lags: Retiming the Transfer of Funds	494
		Reinvoicing Centers	495
		Summary of Learning Objectives 497 - 
Questions 498 - Problems 499 - Internet Exercises 501
		Mini-Case: Ford Ranger Asia Pacific	502
	Chapter 22	Working Capital Management in the MNE	504
		Working Capital Management	505
		International Cash Management	513
		Financing Working Capital	521
		Summary of Learning Objectives 526 - 
Questions 527 - Problems 528 - Internet Exercises 530
		Mini-Case: Honeywell and Pakistan International Airways	531
Chapter 23	International Trade Finance	534
		Elements of an Import/Export Transaction	536
		Key Documents	539
		Global Finance Perspective 23.1
		Trade Finance Solutions Grow With Trade 	540
		Letter of Credit(L/C)	540
		Draft	543
		Bill of Lading (B/L)	545
		Example: Documentation in a Typical Trade Transaction	546
		Government Programs to Help Finance Exports	548
		Global Finance Perspective 23.2
		The Letter of Credit Goes Online	549
		Summary of Learning Objectives 550 - 
Questions 551 - Problems 552 - Internet Exercises 553
		Mini-Case: Crosswell International's Precious Ultra-Thin Diapers	553
		Glossary	G-1
		Index	I-1

Library of Congress Subject Headings for this publication:

International business enterprises -- Finance.
International finance.
Foreign exchange.