Multinational Business Finance

Multinational Business Finance is renowned for its authoritative coverage and lucid explanations of the intricacies of contemporary international finance. This thoroughly revised Ninth Edition features a streamlined presentation, expanded attention to emerging markets, and a stronger managerial focus throughout.

Highlights

Thorough revision of the text to reflect the advent of the euro and the emerging market crises of 1997-1999.
Integration of parity conditions, the balance of payments, and currency forecasting.
Reconstructed treatment of the various types of interest rate and currency swaps, with an enhanced managerial focus (Chapter 9).
Thoroughly reworked chapter on the global cost of capital and financial structure, including the riddle of higher costs of capital for multinational firms (Chapter 10).
New chapter on international acquisitions and valuations, one of the highest–growth segments of international business today (Chapter 15).
New chapter and theoretical development of the oldest subject in multinational business, adjusting for risk in foreign investments (Chapter 16).
Four new decision cases that probe into emerging market issues. For example, see the Far East Trading Company case, showcasing the problems confronting a Swedish multinational whose Key Asian markets are being adversely affected by the emerging markets crisis.
Numerous new illustrative cases throughout the book.

Contents

Part 1 The International Financial Environment

International Financial Management and the Multinational Firm
The International Monetary Environment
Foreign Exchange Rate Determination
The Foreign Exchange Market
Foreign Currency Options

Part 2 Measuring and Managing Foreign Exchange Exposure

Transaction Exposure
Operating Exposure
Accounting Exposure
Interest Rate Exposure and Swaps

Part 3 Financing the Global Firm

Global Cost of Capital and Financial Structure
Sourcing Equity Globally
Sourcing Debt Globally

Part 4 Foreign Investment Decisions

Corporate Strategy and Foreign Direct Investment
Multinational Capital Budgeting
International Acquisitions and Valuation
Adjusting for Risk in Foreign Investments

Part 5 Managing Multinational Operations

Multinational Taxation
Repositioning Funds
Working Capital Management
Export and Import Financing
Evaluation of Performance

Part 6 Advanced Topics in Multinational Finance

International Portfolio Theory and the MNE
Advanced Topics in Currency Risk Management
Advanced Topics in Interest Rate Risk Management

About the Authors

David K. Eiteman is Professor of Finance Emeritus at the John E. Anderson Graduate School of Management at UCLA.

Arthur I. Stonehill is a Professor of Finance and International Business, Emeritus, at Oregon State University, where he taught for 24 years (1966–1990).

Michael H. Moffett is Associate Professor of Finance at Thunderbird, The American Graduate School of International Management.