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• Title Page
• Copyright Page
• For Art
• Pearson’s Commitment to Diversity, Equity, and Inclusion
• Preface
• Brief Contents
• Contents
• Part 1: Global Financial Environment
• Chapter 1. Multinational Financial Management: Opportunities and Challenges
• 1.1 The Global Financial Marketplace
• Global Finance in Practice 1.1: Exchange Rate Quotations
• Global Finance in Practice 1.2: Why Don’t African Countries Undervalue their Currencies?
• 1.2 The Theory of Comparative Advantage
• 1.3 What Is Different About International Financial Management?
• Global Finance in Practice 1.3: Corporate Responsibility and Corporate Sustainability
• 1.4 The Globalization Process
• Summary Points
• Mini-case: Global Fintech
• Questions
• Problems
• Chapter 2. International Monetary System
• 2.1 History of the International Monetary System
• Global Finance in Practice 2.1: The “Gold Bloc”—The Last Stand of Gold Standard
• Global Finance in Practice 2.2: Britain Leaves the Gold Standard: Press Notice (Excerpts of Septembe
• Global Finance in Practice 2.3: Hammering out an Agreement at Bretton Woods
• 2.2 Fixed versus Flexible Exchange Rates
• 2.3 The Impossible Trinity
• 2.4 A Single Currency for Europe: The Euro
• 2.5 Internationalization of the Chinese RMB
• 2.6 Emerging Markets and Regime Choices
• Global Finance in Practice 2.4: Nigeria Fights Currency Exchange Innovation
• Summary Points
• Mini-case: The Promise of the Digital Yuan
• Questions
• Problems
• Chapter 3. The Balance of Payments
• 3.1 Fundamentals of BOP Accounting
• 3.2 The Accounts of the Balance of Payments
• Global Finance in Practice 3.1: Inward Foreign Direct Investment in the Year of COVID
• Global Finance in Practice 3.2: A Country’s Net International Investment Position (NIIP)
• 3.3 BOP Impacts on Key Macroeconomic Rates
• 3.4 Trade Balances and Exchange Rates
• Global Finance in Practice 3.3: Do Trade Flows No Longer Follow the Theory?
• 3.5 Capital Mobility
• Global Finance in Practice 3.4: Chinese Regulatory Bureaucracy as a Capital Control
• Summary Points
• Mini-case: Global Remittances—Contributions of the Invisible
• Questions
• Problems
• Chapter 4. Financial Goals, Corporate Governance, and the Market for Corporate Control
• 4.1 Business Ownership
• Global Finance in Practice 4.1: Historical Origins of the Modern Corporation
• Global Finance in Practice 4.2: Structural Ownership Differences Across the World
• 4.2 The Corporate Objective?
• Global Finance in Practice 4.3: Stakeholder Capitalism Metrics: The Four Ps
• 4.3 Corporate Governance
• Global Finance in Practice 4.4: Italian Cross-Shareholding and the End of the Salatto Buono
• Global Finance in Practice 4.5: Volkswagen’s Governance and Diesel Gate
• 4.4 The Market for Corporate Control
• Summary Points
• Mini-case: Toshiba’s Failing Corporate Governance
• Questions
• Problems
• Part 2: Foreign Exchange Theory and Markets
• Chapter 5. The Foreign Exchange Market
• 5.1 Functions of the Foreign Exchange Market
• 5.2 Structure of the Foreign Exchange Market
• Global Finance in Practice 5.1: The Twilight Hour in Global FX Trading
• Global Finance in Practice 5.2: Bankhaus Herstatt and Herstatt Risk
• Global Finance in Practice 5.3: Black Wednesday: The 1992 Sterling Crisis
• 5.3 Transactions in the Foreign Exchange Market
• 5.4 Foreign Exchange Rates and Quotations
• Global Finance in Practice 5.4: The Rocketing Swiss Franc
• Summary Points
• Mini-case: Iceland: A Small Country in a Global Crisis
• Questions
• Problems
• Chapter 6. International Parity Conditions
• 6.1 Prices and Exchange Rates
• Global Finance in Practice 6.1: Lies, Damn Lies, and Statistics: Uber Fare as the Basis for Exchange
• 6.2 Interest Rates and Exchange Rates
• Global Finance in Practice 6.2: Are foreign Capital Inflow and Interest Rate Directly Related?
• Global Finance in Practice 6.3: Global Money Market Interest Rates, 1986–2021
• 6.3 Forward Rate as an Unbiased Predictor of the Future Spot Rate
• Global Finance in Practice 6.4: Hungarian Mortgage
• 6.4 Prices, Interest Rates, and Exchange Rates in Equilibrium
• Summary Points
• Mini-case: Mrs. Watanabe and the Japanese Yen Carry Trade
• Questions
• Problems
• Chapter 7. Foreign Currency Derivatives: Futures and Options
• 7.1 Foreign Currency Futures
• 7.2 Foreign Currency Options
• Global Finance in Practice 7.1: Currency Options and Lufthansa
• Global Finance in Practice 7.2: Exotic Options: Caveat Emptor
• 7.3 Option Pricing and Valuation
• Global Finance in Practice 7.3: The New Zealand Kiwi and Andrew Krieger
• 7.4 Currency Option Pricing Sensitivity
• Global Finance in Practice 7.4: GM and Fiat’s Put Option
• Summary Points
• Mini-case: The Ups and Downs of Volatility
• Questions
• Problems
• Chapter 8. Interest Rate Risk and Swaps
• 8.1 Interest Rate Foundations
• 8.2 The Cost of Debt
• Global Finance in Practice 8.1: You Will Be a Millionaire in Indonesia: The Impact of South Asian Cu
• 8.3 Interest Rate Risk
• 8.4 Interest Rate Futures and Forward Rate Agreements
• 8.5 Interest Rate Swaps
• Global Finance in Practice 8.2: Procter & Gamble and Bankers Trust
• Summary Points
• Mini-case: Replacing LIBOR
• Questions
• Problems
• Chapter 9. Foreign Exchange Rate Determination and Intervention
• 9.1 Exchange Rate Determination: The Theoretical Thread
• Global Finance in Practice 9.1: Technical Analysis of the Japanese Yen-U.S. Dollar Exchange Rate (Ja
• 9.2 Currency Market Intervention
• Global Finance in Practice 9.2: Coordinated Intervention: The Lost Decade of Japan
• Global Finance in Practice 9.3: Rules of Thumb for Effective Intervention
• Global Finance in Practice 9.4: The European Monetary System’s “Snake in a Tunnel”
• 9.3 Disequilibrium: Exchange Rates in Emerging Markets
• 9.4 Currency Forecasting in Practice
• Summary Points
• Mini-case: Is China a Currency Manipulator?
• Questions
• Problems
• Part 3: Foreign Exchange Exposure
• Chapter 10. Transaction Exposure
• 10.1 Types of Foreign Exchange Exposure
• 10.2 Why Hedge?
• Global Finance in Practice 10.1: Hedging and the Samsung Group
• 10.3 Transaction Exposure
• 10.4 Transaction Exposure Management
• Global Finance in Practice 10.2: Forward Rates and the Cost of Hedging
• 10.5 Transaction Exposure Management in Practice
• Global Finance in Practice 10.3: Why Intra-Company Hedging Makes Sense
• Summary Points
• Mini-case: GraysonChung’s FX Exposure
• Questions
• Problems
• Chapter 11. Translation Exposure
• 11.1 Overview of Translation
• Global Finance in Practice 11.1: Functional Currency and Management Performance
• 11.2 Translation Methods
• 11.3 Aidan Corporation’s Translation Exposure
• Global Finance in Practice 11.2: Value of a Foreign Subsidiary: Tata Motors and Jaguar Land Rover
• 11.4 Managing Translation Exposure
• Global Finance in Practice 11.3: Foreign Currency Hedge Accounting
• Summary Points
• Mini-case: Electrolux of Sweden’s Currency Management
• Questions
• Problems
• Chapter 12. Operating Exposure
• 12.1 A Multinational’s Operating Exposure
• Global Finance in Practice 12.1: Operational Exposure: Jet2.com
• 12.2 Measuring Operating Exposure
• Global Finance in Practice 12.2: The Misunderstood Equation
• 12.3 Strategic Management of Operating Exposure
• Global Finance in Practice 12.3: The United Kingdom and Europe: Trans-Channel Currency Shifts
• 12.4 Proactive Management of Operating Exposure
• Global Finance in Practice 12.4: Hedging Hogs: Risk Sharing at Harley-Davidson
• Global Finance in Practice 12.5: Do Fixed Exchange Rates Increase Corporate Currency Risk in Emergin
• Summary Points
• Mini-case: Brexit and Rolls-Royce
• Questions
• Problems
• Part 4: Financing the Global Firm
• Chapter 13. Global Cost and Availability of Capital
• 13.1 Financial Globalization and Strategy
• Global Finance in Practice 13.1: Brexit and the Cost of Capital
• 13.2 International Portfolio Theory and Diversification
• 13.3 The Role of International Portfolio Investors
• Global Finance in Practice 13.2: Emerging Market Growth Companies—IPOs and Corporate Governance
• Global Finance in Practice 13.3: Culture, Religion, Law, and Financial Behavior
• 13.4 The Cost of Capital for MNEs Compared to Domestic Firms
• 13.5 Illustrative Case: Novo Industri A/S (Novo)
• Summary Points
• Mini-case: The Recapitalization of Saudi Aramco
• Questions
• Problems
• Chapter 14. Funding the Multinational Firm
• 14.1 Designing a Strategy to Source Capital Globally
• 14.2 Optimal Financial Structure
• 14.3 Raising Equity Globally
• Global Finance in Practice 14.1: Saudi Aramco’s IPO Valuation
• Global Finance in Practice 14.2: Global Equity Listings
• 14.4 Depositary Receipts
• 14.5 Private Placement
• 14.6 Raising Debt Globally
• Global Finance in Practice 14.3: Islamic Finance
• 14.7 Financing Foreign Subsidiaries
• Summary Points
• Mini-case: Cemex’s Debt Dilemma
• Questions
• Problems
• Chapter 15. Multinational Tax Management
• 15.1 Tax Principles and Practices
• 15.2 Multinational Tax Management
• Global Finance in Practice 15.1: Profit Repatriation and Policies
• Global Finance in Practice 15.2: HP’s Offshore Cash and Staggered Loan Program
• 15.3 Global Tax Competitiveness
• 15.4 U.S. Tax Law Change in 2017–2018
• Summary Points
• Mini-case: The Google Tax
• Questions
• Problems
• Chapter 16. International Trade Finance
• 16.1 The Trade Relationship
• Global Finance in Practice 16.1: Trade Finance Gains and Losses from the Global Pandemic
• 16.2 Key Documents
• Global Finance in Practice 16.2: Florence—The Birthplace of Trade Financing
• 16.3 Government Programs to Help Finance Exports
• 16.4 Trade Financing Alternatives
• Global Finance in Practice 16.3: Factoring in Practice
• 16.5 Forfaiting
• Summary Points
• Mini-case: Crosswell International and Brazil
• Questions
• Problems
• Part 5: Foreign Investments and Investment Analysis
• Chapter 17. Foreign Direct Investment and Political Risk
• 17.1 The Foreign Direct Investment Decision
• 17.2 Structural Choices for Foreign Market Entry
• Global Finance in Practice 17.1: Joint Venture to Wholly Owned Subsidiary
• 17.3 Political Risk: Definition and Classification
• Global Finance in Practice 17.2: The Chinese Belt and Road Initiative (BRI) and Debt-Trap Diplomacy
• 17.4 Financial Impacts of Political Risk
• 17.5 Political Risk Mitigation
• Global Finance in Practice 17.3: Selective Examples of Expropriation and Nationalization across the
• Global Finance in Practice 17.4: U.S. Financial Sanctions on Iran
• Global Finance in Practice 17.5: Structuring Incentives in Foreign Direct Investments
• Summary Points
• Mini-case: Argentina and the Vulture Funds
• Questions
• Chapter 18. Multinational Capital Budgeting and Cross-Border Acquisitions
• 18.1 Complexities of Budgeting for a Foreign Project
• 18.2 Illustrative Case: Cemex Enters Indonesia
• Global Finance in Practice 18.1: Regulatory Strategy Towards Capital Controls
• 18.3 Real Option Analysis
• 18.4 Project Financing
• 18.5 Cross-Border Mergers and Acquisitions
• Global Finance in Practice 18.2: Values Change: GE Appliances and Electrolux
• Global Finance in Practice 18.3: Statoil of Norway’s Acquisition of Esso of Sweden
• Summary Points
• Mini-case: Mittal’s Hostile Acquisition of Arcelor
• Questions
• Problems
• Answers to Selected End-of-Chapter Problems
• Glossary
• Index
• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Z
• Appendix: Currencies of the World