Multinational Business Finance, 14e (e-Book VS 12m)

Authoritative, Comprehensive Coverage of Contemporary International Finance

Renowned for its authoritative, comprehensive coverage of contemporary international finance, Multinational Business Finance 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.

The Fourteenth Edition, now with MyFinanceLab, attempts to capture the rapid evolution of our global marketplace, taking a closer look at the types of organizations that permeate the widespread arena, competition and opportunities in emerging markets, and how financial leadership can integrate the strategic and financial challenges that global businesses face today.

PART 1 Global Financial Environment

Chapter 1 Multinational Financial Management: Opportunities and Challenges

Financial Globalization and Risk

The Global Financial Marketplace

The Theory of Comparative Advantage

What Is Different about International Financial Management?

Market Imperfections: A Rationale for the Existence of the Multinational Firm

The Globalization Process

Summary Points

MINI-CASE: Crowdfunding Kenya

Questions

Problems

Internet Exercises

Chapter 2 The International Monetary System

History of the International Monetary System

IMF Classification of Currency Regimes

Fixed versus Flexible Exchange Rates

A Single Currency for Europe: The Euro

Emerging Markets and Regime Choices

Globalizing the Chinese Renminbi

Summary Points

MINI-CASE: Iceland—A Small Country in a Global Crisis

Questions

Problems

Internet Exercises

Chapter 3 The Balance of Payments

Fundamentals of BOP Accounting

The Accounts of the Balance of Payments

BOP Impacts on Key Macroeconomic Rates

Trade Balances and Exchange Rates

Capital Mobility

Summary Points

MINI-CASE: Global Remittances

Questions

Problems

Internet Exercises

Chapter 4 Financial Goals and Corporate Governance

Who Owns the Business?

The Goal of Management

Publicly Traded versus Privately Held: The Global Shift

Corporate Governance

Summary Points

MINI-CASE: Luxury Wars—LVMH vs. Hermès

Questions

Problems

Internet Exercises

PART 2 Foreign Exchange Theory and Markets

Chapter 5 The Foreign Exchange Market

Functions of the Foreign Exchange Market

Structure of the Foreign Exchange Market

Transactions in the Foreign Exchange Market

Size of the Foreign Exchange Market

Foreign Exchange Rates and Quotations

Summary Points

MINI-CASE: The Venezuelan Bolivar Black Market

Questions

Problems

Internet Exercises

Chapter 6 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

MINI-CASE: Mrs. Watanabe and the Japanese Yen Carry Trade

Questions

Problems

Internet Exercises

Appendix: An Algebraic Primer to International Parity Conditions

Chapter 7 Foreign Currency Derivatives: Futures and Options

Foreign Currency Futures

Currency Options

Option Pricing and Valuation

Advanced Topic: Currency Option Pricing Sensitivity

Summary Points

MINI-CASE: KiKos and the South Korean Won

Questions

Problems

Internet Exercises

Appendix: Currency Option Pricing Theory

Chapter 8 Interest Rate Risk and Swaps

Interest Rate Foundations

Interest Rate Risk

Interest Rate Futures and FRAs

Interest Rate Swaps

Cross-Currency Swaps

Summary Points

MINI-CASE: Argentina and the Vulture Funds

Questions

Problems

Internet Exercises

Chapter 9 Foreign Exchange Rate Determination

Exchange Rate Determination: The Theoretical Thread

Currency Market Intervention

Disequilibrium: Exchange Rates in Emerging Markets

Forecasting in Practice

Summary Points

MINI-CASE: Russian Ruble Roulette

Questions

Problems

Internet Exercises

PART 3 Foreign Exchange Exposure

Chapter 10 Transaction Exposure

Types of Foreign Exchange Exposure

Why Hedge?

Ganado’s Transaction Exposure

Risk Management in Practice

Advanced Topics in Hedging

Summary Points

MINI-CASE: China Noah Corporation

Questions

Problems

Internet Exercises

Appendix: Complex Option Hedges

Chapter 11 Translation Exposure

Overview of Translation

Translation Methods

Ganado Corporation’s Translation Exposure

Managing Translation Exposure

Summary Points

MINI-CASE: McDonald’s, Hoover Hedges, and Cross-Currency Swaps

Questions

Problems

Internet Exercises

Chapter 12 Operating Exposure

A Multinational’s Operating Exposure

Measuring Operating Exposure: Ganado Germany

Strategic Management of Operating Exposure

Proactive Management of Operating Exposure

Summary Points

MINI-CASE: Toyota’s European Operating Exposure

Questions

Problems

Internet Exercises

PART 4 Financing the Global Firm

Chapter 13 The Global Cost and Availability of Capital

Financial Globalization and Strategy

International Portfolio Theory and Diversification

The Demand for Foreign Securities: The Role of International Portfolio Investors

The Cost of Capital for MNEs Compared to Domestic Firms

Summary Points

MINI-CASE: Novo Industri A/S (Novo)

Questions

Problems

Internet Exercises

Chapter 14 Raising Equity and Debt Globally

Designing a Strategy to Source Capital Globally

Optimal Financial Structure

Optimal Financial Structure and the Multinational

Raising Equity Globally

Depositary Receipts

Private Placement

Foreign Equity Listing and Issuance

Raising Debt Globally

Summary Points

MINI-CASE: Petrobrás of Brazil and the Cost of Capital

Questions

Problems

Internet Exercises

Appendix: Financial Structure of Foreign Subsidiaries

Chapter 15 Multinational Tax Management

Tax Principles

Multinational Tax Management

Tax Havens and International Offshore Financial Centers

Google: An Illustrative Case of Profit Repositioning

Corporate Inversion

Summary Points

MINI-CASE: Apple’s Global iTax Strategy

Questions

Problems

Internet Exercises

Chapter 16 International Trade Finance

The Trade Relationship

Benefits of the System

Key Documents

Government Programs to Help Finance Exports

Trade Financing Alternatives

Forfaiting: Medium- and Long-Term Financing

Summary Points

MINI-CASE: Crosswell International and Brazil

Questions

Problems

Internet Exercises

PART 5 Foreign Investments and Investment Analysis

Chapter 17 Foreign Direct Investment and Political Risk

Sustaining and Transferring Competitive Advantage

The OLI Paradigm and Internationalization

Deciding Where to Invest

Modes of Foreign Investment

Illustrative Case: Corporate Competition from the Emerging Markets

Predicting Political Risk

Country-Specific Risk: Transfer Risk

Country-Specific Risk: Cultural and Institutional Risk

Global-Specific Risk

Summary Points

MINI-CASE: Strategic Portfolio Theory, Black Swans, and [Avoiding] Being the Turkey

Questions

Internet Exercises

Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions

Complexities of Budgeting for a Foreign Project

Illustrative Case: Cemex Enters Indonesia

Real Option Analysis

Project Financing

Cross-Border Mergers and Acquisitions

Summary Points

MINI-CASE: Elan and Royalty Pharma

Questions

Problems

Internet Exercises

Answers to Selected End-of-Chapter Problems

Glossary