Fundamentals of Multinational Finance is intended for use in undergraduate International Financial Management, International Business Finance, or International Finance courses. It is also suitable for readers interested in global financial management.
A focused, streamlined approach to creating a global financial management strategy.
Tomorrow’s business leaders will be expected to comprehend global markets and lead their organizations through a constantly changing global environment. By grounding concepts in the context of illuminating case studies and real-world examples, Fundamentals of Multinational Finance familiarizes readers with the fundamental concepts and tools necessary to implement an effective global financial management strategy.
This edition includes the many new financial management challenges faced by today’s business leaders—while still providing readers with a streamlined text that gets straight to the important concepts.
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.
Besides teaching, 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.
Part 1 Global Financial Environment 1
1. Multinational Financial Management: Opportunities and Challenges 2
2. The International Monetary System 23
3. The Balance of Payments 51
4. Financial Goals and Corporate Governance 79 Part 2 Foreign Exchange Theory and Markets 107
5. The Foreign Exchange Market 108
6. International Parity Conditions 137
7. Foreign Currency Derivatives and Swaps 168
8. Foreign Exchange Rate Determination 195 Part 3 Foreign Exchange Exposure 223
9. Transaction Exposure 224
10. Translation Exposure 250
11. Operating Exposure 267 Part 4 Financing the Global Firm 291
12. The Global Cost and Availability of Capital 292
13. Raising Equity and Debt Globally 318
14. Multinational Tax Management 353
15. International Trade Finance 373 Part 5 Foreign Investment Decisions 399
16. Foreign Direct Investment and Political Risk 400
17. Multinational Capital Budgeting and Cross-Border Acquisitions 430