Multinational Financial Management

* Integrates economic and political factors underlying exchange rate determination.

* Uses the balance-of-payments framework to assess economic links among nations.

* Presents a comprehensive discussion of the foreign exchange market.

* Discusses the key parity conditions in international finance that relate interest rates, exchange rates, and inflation rates, and the underlying arbitrage considerations that determine them-along with numerous real-world applications.

* Presents distinctions between real and nominal exchange rates and between accounting and economic exposure and their significance for exchange risk management.

* Provides a comprehensive discussion of the mechanisms multinational firms use to manage interaffiliate fund flows on a global basis.

* Presents the underpinnings of financial markets and the implications for international capital flows.

* Presents specialized financing and risk management techniques.

* Discusses the assessment of the cost of capital for foreign investments.

* Discusses the nature and consequences of international portfolio investment, including emerging market investments.

* Presents the development of global strategies of multinational corporations.

* Provides the means for analyzing foreign investments.

* Covers political risk measurement and management.

* Includes a number of distinctive pedagogical features including real-world examples, vignettes, illustrations, and hundreds of realistic end-of-chapter questions and problems.