International Finance; A Practical Perspective

International Finance is a complete and authoritative text on the theory and practice of finance in the international arena. Features include: *A user-friendly approach to a complex topic which moves from the basics to the advanced with clarity and conciseness. *A strong European orientation which gives it an approach that is singular in its focus. *Opportunities for students to assess their progress with multiple choice questions, end-of-chapter questions and answers, exercises, and glossary. *Coverage of current issues and up-to-date material on credit default swaps, the financial crisis of 2007 / 2008, sovereign debt crises, and the carry trade. *Financial Times press cuttings on selected controversial issues drawn from actual vignettes by top FT journalists.Guided tour Preface Acknowledgements Part A ESSENTIAL BACKGROUND 1 Introduction 2 The international monetary system Part B FOREIGN EXCHANGE 3 Exchange rates: the basic equations 4 Foreign exchange markets 5 The balance of payments 6 Theories and empiricism on exchange rate movements 7 Definitions of foreign exchange risk TEST BANK 1 Part C HEDGING 8 Does foreign exchange exposure matter? 9 Principles of exposure management 10 Internal techniques of exposure management 11 External techniques of exposure management TEST BANK 2 Part D DERIVATIVES 12 Swaps 13 Financial futures and foreign exchange 14 Options 15 Currency options 16 Interest rate risk 17 Financial engineering Part E FINANCIAL CRISIS 2007-8 18 Credit default swaps 19 The financial crisis of 2007-8: a synopsis TEST BANK 3 Part F INTERNATIONAL CAPITAL BUDGETING 20 The internationalisation process 21 Exchange controls and corporate tax in international investment 22 The international capital budgeting framework 23 The international capital budgeting model 24 International investment: what discount rate? 25 Country risk analysis and political risk 26 International capital budgeting: the practicalities TEST BANK 4 Part G INTERNATIONAL FINANCING 27 Financing the multinational and its overseas subsidiaries 28 Financing international trade and minimising credit risk 29 Practical problems in hedging Part H MISCELLANEOUS 30 Miscellaneous issues in international finance TEST BANK 5 Suggested answers to end of chapter questions Suggested answers to selected exercises Solutions to multiple choice questions Appendix 1 Present value of $1 Appendix 2 Present value of $1 received annually for n years Appendix 3 Table of areas under the normal curve Appendix 4 Black and Scholes value of call option expressed as a percentage of the share price Appendix 5 Present value of $1 with a continuous discount rate, r, for T periods. Values of e--rt Appendix 6 Selections from ISO 4217 currency code list, a.k.a. SWIFT codes Glossary Notes Index