Multinational Finance, 6th Edition

Preface

Everything should be made as simple as possible, but not simpler.

— Albert Einstein

Multinational Finance assumes the viewpoint of the financial manager of a multinational enterprise with operations in more than one country. The enterprise could be a multinational corporation, a large financial institution, or a small partnership or proprietorship. The book provides a framework for evaluating the many opportunities, costs, and risks of multinational operations in a manner that allows readers to see beyond the algebra and terminology to general principles. The text is organized into five parts:

• Part I: The International Financial Environment. The text begins with an introduction to the international financial environment, currency and Eurocurrency markets, and the international parity conditions. Chapters 3 and 4 on currency and Eurocurrency markets are necessary prerequisites for most of the chapters that follow.
• Part II: Derivative Securities for Financial Risk Management. Chapters 5 to 7 cover currency derivatives—futures, options, and swaps—because of the importance of these derivative instruments in financial risk management.
• Part III: Managing the Risks of Multinational Operations. Part III covers the multinational treasury and the multinational corporation's management of transaction, operating, and translation exposures to currency risk.
• Part IV: Valuation and the Structure of Multinational Operations. Valuing and structuring the corporation's international assets ...