Multinational Business Finance

Description

This is a Pearson Global Edition.  The Pearson Editorial team worked closely with educators around the world to include content especially relevant to students outside the United States.

For courses on International Finance.

Authoritative, comprehensive coverage of contemporary international finance.

Renowned for its authoritative, comprehensive coverage of contemporary international finance, this market-leading text trains the leaders of tomorrow’s multinational enterprises to recognize and capitalize on the unique characteristics of global markets. Because the job of a manager is to make financial decisions that increase firm value, the authors have embedded real-world mini-cases throughout to apply chapter concepts to the types of situations managers of multinational firms face.

In the twelfth edition, Chapter 1 now includes a new mini-case “Porsche Changes Track”, while the new Chapter 5 addresses the recent financial crises, providing an overview of the origins, dissemination, and repercussions of this credit crisis on the conduct of global business.

Contents

Part I: Global Environment

Chapter 1: Globalization and the Multinational Enterprise

Chapter 2: Financial Goals & Governance

Chapter 3: The International Monetary System

Chapter 4: The Balance of Payments

Chapter 5: Current Multinational Financial Challenges: Crisis

Part II: Foreign Exchange Theory and Markets

Chapter 6: The Foreign Exchange Market

Chapter 7: International Parity Conditions

Appendix: Algebraic Primer to International Parity Conditions

Chapter 8: Foreign Currency Derivatives

Appendix: Currency Option Pricing Theory

Chapter 9: Interest Rate and Cross Currency Swaps

Chapter 10: Foreign Exchange Rate Determination & Forecasting

Part III: Foreign Exchange Exposure

Chapter 11: Transaction Exposure

Appendix: Complex Options

Chapter 12: Operating Exposure

Chapter 13: Translation Exposure

Part IV: Financing the Global Firm

Chapter 14: The Global Cost and Availability of Capital

Chapter 15: Sourcing Equity Globally

Chapter 16: Sourcing Debt Globally

Part V: Foreign Investment Decisions

Chapter 17: International Portfolio Theory & Investment

Chapter 18: Foreign Direct Investment Theory & Strategy

Chapter 19: Multinational Capital Budgeting

Part VI: Managing Multinational Operations

Chapter 20: Multinational Tax Management

Chapter 21: Working Capital Management

Chapter 22: International Trade Finance

Features

For courses on International Finance.

Authoritative, comprehensive coverage of contemporary international finance.

Renowned for its authoritative, comprehensive coverage of contemporary international finance, this market-leading text trains the leaders of tomorrow’s multinational enterprises to recognize and capitalize on the unique characteristics of global markets. Because the job of a manager is to make financial decisions that increase firm value, the authors have embedded real-world mini-cases throughout to apply chapter concepts to the types of situations managers of multinational firms face.

Unique to the Global Edition, we have two new chapters:

Chapter 4:  International Business Transactions:  The Balance of Payments, which includes such global material as coverage of transactions in China

Chapter 22: Global Petroleum Development, which looks at the financial dimensions of global petroleum development

In the twelfth edition, Chapter 1 now includes a new mini-case “Porsche Changes Track”, while the new Chapter 5 addresses the recent financial crises, providing an overview of the origins, dissemination, and repercussions of this credit crisis on the conduct of global business.

• The unique managerial emphasis employs numerous embedded mini-cases to push students beyond a superficial understanding of abstract concepts. Students learn that a successful manager in a multinational enterprise not only needs to be able to recognize imperfections in national markets for products, factors of production and financial assets, but also to be able to make decisions about how to benefit from those imperfections.
• Exceptional currency of coverage keeps students abreast of contemporary issues and events, including financial management issues in emerging markets.
• An entire chapter is devoted to the political risk challenges faced by multinational enterprises across three corridors of exposure: firm-specific risk, country-specific risk, and global-specific risk.
• Spreadsheet examples, along with online templates, give students hands on practice with a key tool of the financial manager. Multinational Business Finance also offers the most end-of-chapter problems of any text on the market. Spreadsheet solutions are available for instructors.
• A complete supplements package, including PowerPoint® lecture notes, instructor’s manual and a comprehensive test bank is available.

NEW! Chapter 1: Globalization and the Multinational Enterprise traces the logical development of globalization forces, comparative advantage, foreign direct investment by multinational enterprises, and financial globalization principles to multinational financial management.

NEW! Chapter 2: Financial Goals and Corporate Governance is largely new and expands on the discussion of corporate governance in the original Chapter 1 to now include private ownership of business—the still dominant form of ownership globally—and differing perspectives on the value of good governance globally.

NEW! Chapter 5: Current Multinational Financial Management Challenges: The Global Credit Crisis contains the most up-to-date and detailed coverage on the recent financial crises. This coverage provides an overview of the origins, dissemination, and repercussions of the current credit crisis on global business. The chapter begins with the seeds of the crisis—the rapid lending and expansion of real estate markets in the post 2000 marketplace—followed by a detailed description of how securitization contributed to the growth of mortgage-backed and other asset-backed securities, the derivative instruments created for their marketing and sales, and the sequence of market failures causing financial crisis. The chapter concludes with a detailed analysis of the international interbank markets and how they have "frozen" and behaved during the crisis.

NEW! Chapter 5 mini-case—This new chapter concludes with a mini-case debating whether the U.S. government should or should not have allowed one of the largest investment banks, Lehman Brothers, to fail.

NEW! Chapter 18: Foreign Direct Investment Theory and Strategy has a new section on emerging market MNEs.

More Global Finance in Practice boxes have been added throughout the text, highlighting the importance of current events tied to chapter material.

Author

Arthur I. Stonehill  Arthur I. Stonehill is a Professor of Finance and International Business, Emeritus, at Oregon State University, where he taught for 24 years (1966-1990). During 1991-1997 he held a split appointment at the University of Hawaii at Manoa and Copenhagen Business School. From 1997 to 2001 he continued as a Visiting Professor at the University of Hawaii at Manoa He has also held teaching or research appointments at the University of California, Berkeley, Cranfield School of Management (U.K.), and the North European Management Institute (Norway). He was a former president of the Academy of International Business, and was a western director of the Financial Management Association.  Professor Stonehill received a B.A. (History) from Yale University (1953), an M.B.A. from Harvard Business School (1957), and a Ph.D. in Business Administration from the University of California, Berkeley (1965). He was awarded honorary doctorates from the Aarhus School of Business (Denmark, 1989), the Copenhagen Business School (Denmark, 1992), and Lund University (Sweden, 1998). He has authored or co-authored nine books and twenty-five other publications. His articles have appeared in Financial Management, Journal of International Business Studies, California Management Review, Journal of Financial and Quantitative Analysis, Journal of International Financial Management and Accounting, International Business Review, European Management Journal, The Investment Analyst (U.K.), Nationaløkonomisk Tidskrift (Denmark), Sosialøkonomen (Norway), Journal of Financial Education, and others.

David K. Eiteman  David K. Eiteman is Professor Emeritus of Finance at the John E. Anderson Graduate School of Management at UCLA. He has also held teaching or research appointments at the Hong Kong University of Science & Technology, Showa Academy of Music (Japan), the National University of Singapore, Dalian University (China), the Helsinki School of Economics and Business Administration (Finland), University of Hawaii at Manoa, University of Bradford (U.K.), Cranfield School of Management (U.K.), and IDEA (Argentina). He is a former president of the International Trade and Finance Association, Society for Economics and Management in China, and Western Finance Association.  Professor Eiteman received a B.B.A. (Business Administration) from the University of Michigan, Ann Arbor (1952), M.A. (Economics) from the University of California, Berkeley (1956), and a Ph.D. (Finance) from Northwestern University (1959).  He has authored or co-authored four books and twenty-nine other publications. His articles have appeared in The Journal of Finance, The International Trade Journal, Financial Analysts Journal, Journal of World Business, Management International, Business Horizons, MSU Business Topics, Public Utilities Fortnightly, and others.

Michael H. Moffett  Michael H. Moffett is Continental Grain Professor of Finance at Thunderbird School of Global Management. He was formerly Associate Professor of Finance at Oregon State University (1985-1993). He has also held teaching or research appointments at the University of Michigan, Ann Arbor (1991-1993), the Brookings Institution, Washington, D.C., the University of Hawaii at Manoa, the Aarhus School of Business (Denmark), the Helsinki School of Economics and Business Administration (Finland), the International Centre for Public Enterprises (Yugoslavia), and the University of Colorado, Boulder.

Professor Moffett received a B.A. (Economics) from the University of Texas at Austin (1977), an M.S. (Resource Economics) from Colorado State University (1979), an M.A. (Economics) from the University of Colorado, Boulder (1983), and Ph.D. (Economics) from the University of Colorado, Boulder (1985).  He has authored, co-authored, or contributed to six books and 15 other publications. His articles have appeared in the Journal of Financial and Quantitative Analysis, Journal of Applied Corporate Finance, Journal of International Money and Finance, Journal of International Financial Management and Accounting, Contemporary Policy Issues, Brookings Discussion Papers in International Economics, and others. He has contributed to a number of collected works including the Handbook of Modern Finance, the International Accounting and Finance Handbook, and the Encyclopedia of International Business. He is also co-author of two books in multinational business with Michael Czinkota and Ilkka Ronkainen,International Business (7th edition) and Global Business.