Multinational Business Finance

Transcription

1 GLOBAL EDITION Multinational Business Finance THIRTEENTH EDITION David K. Eiteman Arthur I. Stonehill Michael H. Moffett

2 The Pearson Series in Finance Adelman/Marks Entrepreneurial Finance Andersen Global Derivatives: A Strategic Risk Management Perspective Bekaert/Hodrick International Financial Management Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Boakes Reading and Understanding the Financial Times Brooks Financial Management: Core Concepts* Copeland/Weston/Shastri Financial Theory and Corporate Policy Dorfman/Cather Introduction to Risk Management and Insurance Eiteman/Stonehill/Moffett Multinational Business Finance Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions and Instruments Fabozzi/Modigliani/Jones/Ferri Foundations of Financial Markets and Institutions Finkler Financial Management for Public, Health, and Not-for-Profit Organizations Frasca Personal Finance Gitman/Joehnk/Smart Fundamentals of Investing* Gitman/Zutter Principles of Managerial Finance* Gitman/Zutter Principles of Managerial Finance Brief Edition* Haugen The Inefficient Stock Market: What Pays Off and Why Haugen The New Finance: Overreaction, Complexity, and Uniqueness Holden Excel Modeling and Estimation in Corporate Finance Holden Excel Modeling and Estimation in Investments Hughes/MacDonald International Banking: Text and Cases Hull Fundamentals of Futures and Options Markets Hull Options, Futures, and Other Derivatives Keown Personal Finance: Turning Money into Wealth* Keown/Martin/Petty Foundations of Finance: The Logic and Practice of Financial Management* Kim/Nofsinger Corporate Governance Madura Personal Finance* Marthinsen Risk Takers: Uses and Abuses of Financial Derivatives McDonald Derivatives Markets McDonald Fundamentals of Derivatives Markets Mishkin/Eakins Financial Markets and Institutions Moffett/Stonehill/Eiteman Fundamentals of Multinational Finance Nofsinger Psychology of Investing Ormiston/Fraser Understanding Financial Statements Pennacchi Theory of Asset Pricing Rejda Principles of Risk Management and Insurance Seiler Performing Financial Studies: A Methodological Cookbook Shapiro Capital Budgeting and Investment Analysis Sharpe/Alexander/Bailey Investments Solnik/McLeavey Global Investments Stretcher/Michael Cases in Financial Management Titman/Keown/Martin Financial Management: Principles and Applications* Titman/Martin Valuation: The Art and Science of Corporate Investment Decisions Van Horne Financial Management and Policy Van Horne/Wachowicz Fundamentals of Financial Management Weston/Mitchel/Mulherin Takeovers, Restructuring, and Corporate Governance *denotes MyFinanceLab titles Log onto to learn more

3 Multinational Business Finance: Global Edition Table of Contents Cover Title Contents Part I Global Financial Environment Chapter 1 Current Multinational Financial Challenges Financial Globalization and Risk The Global Financial Marketplace The Theory of Comparative Advantage What Is Different about International Financial Management? Market Imperfections: A Rationale for the Existence of the Multinational Firm The Globalization Process Mini-Case: Nine Dragons Paper and the 2009 Credit Crisis Chapter 2 Ownership and Governance of the Corporation Who Owns the Business? The Goal of Management Mini-Case: Luxury WarsLVMH vs. Hermès Chapter 3 The International Monetary System History of the International Monetary System IMF Classification of Currency Regimes Fixed Versus Flexible Exchange Rates A Single Currency for Europe: The Euro Emerging Markets and Regime Choices Exchange Rate Regimes: What Lies Ahead? Mini-Case: The Yuan Goes Global Chapter 4 The Balance of Payments Typical Balance of Payments Transactions Fundamentals of Balance of Payments Accounting The Accounts of the Balance of Payments The Capital and Financial Accounts Breaking the Rules: Chinas Twin Surpluses The Balance of Payments in Total The Balance of Payments Interaction with Key Macroeconomic Variables

4 Trade Balances and Exchange Rates Capital Mobility Mini-Case: Global Remittances Chapter 5 The U.S. and European Financial Crises 142 The Credit Crisis of Global Contagion The European Debt Crisis of Mini-Case: The Trouble with LIBOR Part II Foreign Exchange Theory Chapter 6 The Foreign Exchange Market Geographical Extent of the Foreign Exchange Market Functions of the Foreign Exchange Market Market Participants Transactions in the Foreign Exchange Market Size of the Foreign Exchange Market Foreign Exchange Rates and Quotations Mini-Case: The Saga of the Venezuelan Bolivar Fuerte Chapter 7 International Parity Conditions Prices and Exchange Rates Exchange Rate Pass-Through The Forward Rate Prices, Interest Rates, and Exchange Rates in Equilibrium Mini-Case: Emerging Market Carry Trades Appendix: An Algebraic Primer to International Parity Conditions Chapter 8 Currency Derivatives Foreign Currency Futures Option Pricing and Valuation Interest Rate Derivatives Mini-Case: McDonalds Corporations British Pound Exposure Part III Multinational Exchange Rate Exposure Chapter 9 The Determinants of Exchange Rates

5 Exchange Rate Determination: The Theoretical Thread Currency Market Intervention Disequilibrium: Exchange Rates in Emerging Markets Forecasting in Practice Mini-Case: The Japanese Yen Intervention of 2010 Chapter 10 Transaction Exposure Management Types of Foreign Exchange Exposure Tridents Transaction Exposure Mini-Case: Banbury Impex (India) Appendix: Complex Option Hedges Chapter 11 Translation Exposure Management Overview of Translation Translation Methods U.S. Translation Procedures Trident Corporations Translation Exposure Trident Corporations Translation Exposure: Income Mini-Case: LaJolla Engineering Services Chapter 12 Operating Exposure Management Trident Corporation: A Multinationals Operating Exposure Measuring Operating Exposure: Trident Germany Strategic Management of Operating Exposure Proactive Management of Operating Exposure Mini-Case: Toyotas European Operating Exposure Part IV Financing the Multinational Firm Chapter 13 The Global Cost of Capital Financial Globalization and Strategy The Demand for Foreign Securities: The Role of International Portfolio Investors The Cost of Capital for MNEs Compared to Domestic Firms The Riddle: Is the Cost of Capital Higher for MNEs? Mini-Case: Novo Industri A/S (Novo) Chapter 14 International Debt and Equity Financing

6 Designing a Strategy to Source Capital Globally Optimal Financial Structure Raising Equity Globally Depositary Receipts Private Placement Foreign Equity Listing and Issuance Raising Debt Globally Mini-Case: Korres Natural Products and the Greek Crisis Appendix: Financial Structure of Foreign Subsidiaries Chapter 15 Global Tax Management Tax Principles Mini-Case: The U.S. Corporate Income Tax Conundrum Part V Foreign Investment Decisions Chapter 16 International Portfolio Theory International Diversification and Risk Internationalizing the Domestic Portfolio National Markets and Asset Performance Market Performance Adjusted for Risk: The Sharpe and Treynor Performance Measures Mini-Case: Portfolio Theory, Black Swans, and [Avoiding] Being the Turkey Chapter 17 Foreign Direct Investment: Returns and Risks Sustaining and Transferring Competitive Advantage Deciding Where to Invest How to Invest Abroad: Modes of Foreign Involvement Political Risk Mini-Case: Corporate Competition from the Emerging Markets Chapter 18 Multinational Investment and Acquisition Complexities of Budgeting for a Foreign Project Project Versus Parent Valuation Illustrative Case: Cemex Enters Indonesia Project Financing Mini-Case: Yanzhou (China) Bids for Felix Resources (Australia)

7 Part VI Special Topics in Global Finance Chapter 19 Financial Management of Multinational Operations Trident Brazils Operating Cycle Tridents Repositioning Decisions Constraints on Repositioning Funds Conduits for Moving Funds by Unbundling Them International Dividend Remittances Net Working Capital International Cash Management Financing Working Capital Mini-Case: Honeywell and Pakistan International Airways QuestionsProblems Internet Exercises Chapter 20 Global Petroleum Development: Fiscal Regimes and Funding Financing Petroleum Development Fiscal Regimes Development Agreements Concessions Royalty/Tax Systems Production Sharing Agreements Service Agreements Added Contractual Features Top-Line Risks Petroleum Prices A Hypothetical Sub-Saharan PSA PSA Evolution Fiscal Regimes Today Government and Policy Change The Future Funding Petroleum Development Mini-Case: Petroleum Development and the Curse of Oil Answers to Selected End-of-Chapter Problems Glossary Index A B C

8 D E F G H I J K L M N O P Q R S T U V W Y Credits