International financial management

목차 (Table of Contents)

• CONTENTS
• PART Ⅰ THE INTERNATIONAL FINANCIAL ENVIRONMENT = 1
• CHAPTER 1 MULTINATIONAL FINANCIAL MANAGEMENT : AN OVERVIEW = 3
• Goal of the MNC = 5
• Conflicts against the MNC Goal = 5
• Constraints Interfering with the MNC Goal = 7
• Theories of International Business = 8
• Theories of Comparative Advantage = 9
• Imperfect Markets Theory = 9
• Product Cycle Theory = 9
• Increased Golbalization = 10
• International Business Methods = 12
• International Trade = 12
• Licensing = 12
• Franchising = 13
• Joint Ventures = 13
• Acquisitions of Existing Operations = 13
• Establishing New Foreign Subsidiaries = 14
• Summary of Methods = 14
• Increased Golbalization = 14
• Growth in International Trade = 14
• Growth in Direct Foreign Investment = 14
• International Opportunities and Risk = 18
• Opportunities in Europe = 20
• Opportunities in Mexico = 20
• Opportunities Elsewhere = 21
• International Risk = 21
• Preview of Text = 22
• Summary = 23
• Self­Test for Chapter 1 = 24
• Questions = 24
• Case Problem = 25
• Corporate Dilemma = 26
• Small Business Dilemma = 27
• Running Your Own MNC = 28
• Internet Applications = 28
• Projects = 30
• APPENDIX 1 : Addressess of MNCs = 31
• CHAPTER 2 INTERNATIONAL FLOW OF FUNDS = 39
• Balance of Payments = 39
• Current Account = 39
• Capital Account = 46
• Factors Affecting the Current Account = 47
• Impact of Inflation = 48
• Impact of National Income = 48
• Impact of Government Restrictions = 48
• Impact of Exchange Rates = 49
• Interaction of Factors = 50
• Correcting a Balance of Trade Deficit = 50
• Why a Weak Home Currency Is Not a Perfect Solution = 50
• Factors Affecting the Capital Account = 52
• Agencies That Promote International Flows = 53
• International Monetary Fund = 53
• World Bank = 54
• World Trade Organization = 55
• International Financial Corporation = 55
• International Development Association = 55
• Bank for International Settlements = 55
• Regional Development Agencies = 55
• Summary = 56
• Self­Test for Chapter 2 = 56
• Questions = 56
• Case Problem = 58
• Corporate Dilemma = 59
• Small Business Dilemma = 59
• Running Your Own MNC = 60
• Internet Applications = 60
• Project = 61
• CHAPTER 3 INTERNATIONAL FINANCIAL MARKETS = 63
• Motives for Using International Financial Markets = 63
• Motives for Investing in Foreign Markets = 63
• Motives for Providing Credit in Foreign Markets = 64
• Motives for Borrowing in Foreign Markets = 65
• Foreign Exchange Market = 65
• Bank Participation = 66
• Bid／Ask Spread of Banks = 68
• Exchange Rate Risk at Banks = 70
• Forward Contracts = 70
• Interpreting Foreign Exchange Quotations = 72
• Cross Exchange Rates = 74
• Currency Futures and Options Markets = 74
• Eurocurrency Market = 75
• Development of the Eurocurrency Market = 76
• Composition of the Eurocurrency Market = 76
• Syndicated Eurocurrency Loans = 77
• Standardizing Bank Regulations within the Eurocurrency Market = 77
• Asian Dollar Market = 79
• Eurocredit market = 79
• Eurobond Market = 80
• Development of the Eurobond Market = 81
• International Stock Markets = 82
• Use of International Financial Markets = 86
• Summary = 87
• Self­Test for Chapter 3 = 88
• Questions = 88
• Case Problem = 89
• Corporate Dilemma = 90
• Smalll Business Di1emma = 90
• Running Your Own MNC = 91
• Internet Applications = 91
• Project = 93
• APPENDIX3 : Investing in International Financial Markets = 94
• International Stock Diversification = 94
• Potential Risk Reduction for the Future = 95
• Market Movements During the 1987 Crash = 95
• Valuation of Foreign Stocks = 97
• Methods Used to Invest International = 99
• Exchange Rate Risk of Foreign Stocks = 101
• CHAPTER 4 EXCHANGE RATE DETERMINATION = 105
• Measuring Exchange Rate Movements = 105
• Exchange Rate Equilibrium = 106
• Demand for a Currency = 107
• Supply of a Currency for Sale = 107
• Factors that Influence Exchange Rates = 108
• Relative Interest Rates = 109
• Relative Interest Rates = 110
• Relative Income Levels = 112
• Government Controls = 112
• Expectations = 113
• Interaction of Factors = 115
• How Factors Have Influenced Exchange Rates = 117
• Speculating on Anticipated Exchange Rates = 118
• Summary = 120
• Self­Test for Chapter 4 = 120
• Questions = 121
• Case Problem = 124
• Corporate Dilemma = 124
• Small Business Dilemma = 125
• Running Your Own MNC = 125
• Internet Applications = 125
• Project = 128
• APPENDIX 4 : Foreign Exchange Trading in the Real Wor1d = 129
• CHAPTER 5 CURRENCY FUTURES AND OPTIONS = 141
• Currency Futures Market = 141
• Currency Futures Contracts versus Forward Contracts = 141
• Pricing Currency Futures = 142
• Interpreting Currency Futures Contracts Information = 144
• Closing Out a Futures Position = 144
• Credit Risk of Currency Futures Contracts = 144
• Corporate Use of Currency Futures = 145
• Speculation with Currency Futures = 145
• Transaction Costs of Currency Futures = 145
• Currency Options Market = 146
• Currency Call Options = 147
• Factors Affecting Call Option Premiums = 148
• Hedging with Currency Call Options = 149
• Speculating with Currency Call Options = 150
• Currency Put Options = 152
• Factors Affecting Currency Put Option Premiums = 152
• Hedging with Currency Put Options = 152
• Speculating with Currency Put Options = 153
• Contingency Graphs for Options = 154
• European Currency Options = 156
• Efficiency of Currency Futures and Options = 156
• Summary = 157
• Self­Test for Chapter 5 = 158
• Questions = 158
• Case Problem = 162
• Corporate Dilemma = 163
• Running Your Own MNC = 163
• Small Business Dilemma = 164
• Internet Applications = 164
• Projects = 166
• APPENDIX5 : Currency Option Pricing = 167
• Boundary Conditions = 167
• Lower Bounds = 167
• Upper Bounds = 168
• Application of Pricing Models = 168
• Pricing Currency Put Options According to Pub­Call Panty = 169
• INTEGRATIVE PROBLEM FOR PART I = 171
• PART Ⅱ EXCHANGE RATE BEHAVIOR = 173
• CHAPTER 6 GOVERNMENT INFLUENCE ON EXCHANGE RATES = 175
• Exchange Rate Systems = 175
• Fixed Exchange Rate System = 176
• Freely Floating Exchange Rate System = 176
• Managed Float Exchange Rate System = 178
• Pegged Exchange Rate System = 179
• Classification of Exchange Rate Arrangements = 181
• Exchange Rate Mechanism （ERM） Crisis = 182
• Proposal for a Single European Currency = 185
• Impact on Exchange Rate Risk = 186
• Impact on Monetary Policy = 186
• Potential Barriers to a Single European Currency = 187
• Government Intervention = 188
• Reasons for Government Intervention = 188
• Direct Intervention = 189
• Indirect Intervention = 193
• Exchange Rate Target Zones = 193
• Intervention as a Policy Tool = 194
• Influence of a Weak Home Currency on the Economy = 194
• Influence of a Strong Home Currency on the Economy = 195
• Summary = 196
• Self­Test for Chapter 6 = 196
• Questions = 197
• Case Problem = 198
• Corporate Dilemma = 199
• Small Business Dilemma = 199
• Running Your Own MNC = 199
• Internet Applications = 200
• Project = 201
• CHAPTER 7 INTERNATIONAL ARBITRAGE AND INTEREST RATE PARITY = 203
• International Arbitrage = 203
• Locational Arbitrage = 204
• Triangular Arbitrage = 205
• Covered Interest Arbitrage = 208
• Interest Rate Panty （IRP） = 211
• Derivation of Interest Rate Parity = 211
• Numerical Example of Interest Rate Panty = 212
• Graphic Analysis of Interest Rate Parity = 214
• How to Test Whether Interest Rate Parity Exists = 216
• Interpretation of Interest Rate Parity = 216
• Does Interest Rate Parity Hold? = 217
• Considerations When Assessing Interest Rate Parity = 217
• Correlation Between Spot and Forward Rates = 218
• Summary = 219
• Self­Test for Chapter 7 = 220
• Questions = 221
• Case Problem = 224
• Corporate Dilemma = 225
• Small Business Dilemma = 225
• Running Your Own MNC = 226
• Internet Applications = 226
• Projects = 227
• CHAPTER 8 RELATIONSHIPS BETWEEN INFLATION, INTEREST RATES, AND EXCHANGE RATES = 229
• Purchasing Power Pity （PPP） = 229
• Derivation of Purchasing Power Parity = 230
• Numerical Examples of Purchasing Power Parity = 231
• Rationale Behind the Purchasing Power Parity Theory = 232
• Graphic Analysis of Purchasing Power Parity = 233
• Testing the Purchasing Power Parity Theory = 235
• Statistical Test of PPP = 236
• Why Purchasing Power Parity Does Not Occur = 238
• Limitation in Tests of Purchasing Power Parity = 238
• Purchasing Power Parity in the Long Run = 239
• International Fisher Effect （IFE） = 239
• Derivation of International Fisher Effect = 240
• Graphic Analysis of the International Fisher Effect = 243
• Tests of the International Fisher Effect = 245
• Why the International Fisher Effect Does Not Occur = 246
• Comparison of IRE PPE and IFE Theories = 247
• Summary = 247
• Self­Test for Chapter 8 = 249
• Questions = 249
• Case Problem = 252
• Corporate Dilemma = 253
• Small Business Dilemma = 253
• Running Your Own MNC = 253
• Internet Applications = 254
• Project = 255
• INTEGRATIVE PROBLEM FOR PART Ⅱ = 256
• PART Ⅲ EXCHANGE RATE RISK MANAGEMENT = 257
• CHAPTER 9 FORECASTING EXCHANGE RATES = 259
• Why Firms Forecast Exchange Rates = 259
• Forecasting Techniques = 261
• Technical Forecasting = 261
• Fundamental Forecasting = 262
• Market­Based Forecasting = 267
• Mixed Forecasting = 269
• Forecasting Services = 269
• Evaluation of Forecasting Performance = 270
• Forecast Accuracy Over Time = 271
• Forecast Accuracy Among Currencies = 271
• Search for Forecast Bias = 273
• Statistical Test of Forecast Bias = 273
• Graphic Evaluation of Forecasting Performance = 275
• Comparison of Forecasting Techniques = 276
• Forecasting Under Market Efficiency = 279
• Forecasting Exchange Rate Volatility = 280
• Summary = 281
• Self­Test for Chapter 9 = 282
• Questions = 283
• Case Problem = 286
• Corporate Dilemma = 287
• Small Business Dilemma = 288
• Running your Own MNC = 288
• Internet Applications = 289
• Project = 291
• CHAPTER 10 MEASURING EXPOSURE TO EXCHANGE RATE FLUCTUATIONS = 293
• Is Exchange Rate Risk Relevant? = 293
• Why Exchange Rate Risk is Relevant = 294
• Transaction Exposure = 295
• Transaction Exposure to "Net" Cash Flows = 295
• Transaction Exposure Based on Currency Variability = 297
• Currency Variability Over Time = 298
• Transaction Exposure Based on Currency Correlations = 298
• Currency Correlations Over Time = 303
• Assessing Transaction Exposure : An Example = 303
• Economic Exposure = 304
• Economic Exposure to Local Currency Appreciation = 304
• Economic Exposure to Local Currency Depreciation = 306
• Indirect Economic Exposure = 307
• Economic Exposure of Domestic Firms = 307
• Economic Exposure of MNGs = 307
• Measuring Economic Exposure = 308
• Translation Exposure = 312
• Does Translation Exposure Matter? = 312
• Determinants of Translation Exposure = 313
• Examples of Translation Exposure = 315
• Summary = 315
• Se1f­Test for Chapter 10 = 316
• Questions = 316
• Case Problem = 320
• Corporate Dilemma = 321
• Small Business Dilemma = 322
• Running Your Own MNC = 322
• Internet Applications = 322
• Projects = 325
• APPENDIX 10A : Alternative Measures of Economic Exposure = 326
• Economic Exposure to Exchange Rates = 326
• Economic Exposure to Countries, Conditions = 328
• APPENDIX10B : Estimating the variability of a Currency Portfolio = 330
• CHAPTER 11 MANAGING TRANSACTION EXPOSURE = 333
• Transaction Exposure = 333
• Identifying Net Transaction Exposure = 334
• Is Hedging Worthwhile? = 336
• Adjusting the Invoice Policy to Manage Exposure = 337
• Techniques to Eliminate Transaction Exposure = 338
• Futures Hedge = 338
• Forward Hedge = 339
• Money Market Hedge = 344
• Currency Option Hedge = 346
• Comparison of Hedging Techniques = 348
• Limitation of Repeated Short­Term Hedging = 355
• Hedging Long­Term Transaction Exposure = 357
• Long­Term Forward Contract = 357
• Currency Swap = 357
• Parallel Loan = 358
• Alternative Hedging Techniques = 358
• Leading and Lagging = 359
• Cross­hedging = 359
• Currency Diversification = 360
• Summary = 360
• Self­Test for Chapter 11 = 361
• Questions = 361
• Case Problem = 368
• Corporate Dilemma = 371
• Small Business Dilemma = 371
• Running Your Own MNC = 372
• Internet Applications = 372
• Projects = 373
• CHAPTER 12 MANAGING ECONOMIC EXPOSURE AND TRANSLATION EXPOSURE = 375
• Economic Exposure = 375
• Importance of Managing Economic Exposure = 376
• Assessing Economic Exposure = 376
• How Restructuring Can Reduce Economic Exposure = 378
• Issues Involved in the Restructuring Decision = 380
• How Honda Restructured to Reduce Exposure = 382
• Managing Translation Exposure = 382
• Use of Forward Contracts to Hedge Translation Exposure = 382
• Limitations of Hedging Translation Exposure = 383
• Alternative Solution to Hedging Translation Exposure = 384
• Summary = 384
• Self­Test for Chapter 12 = 385
• Questions = 385
• Case Problem = 387
• Corporate Dilemma = 388
• Small Business Dilemma = 388
• Running Your Own MNC = 389
• Internet Applications = 389
• Project = 391
• INTEGRATIVE PROBLEM FOR PART Ⅲ = 392
• PART Ⅳ SHORT­TERM ASSET AND LIABILITY MANAGEMENT = 395
• CHAPTER 13 FINANCING INTERNATIONAL TRADE = 397
• Payment Methods for International Trade = 397
• Prepayment = 398
• Letters of Credit （L／C） = 399
• Drafts = 399
• Consignment = 400
• Open Account = 400
• Trade Finance Methods = 400
• Accounts Receivable Financing = 400
• Factoring = 401
• Letters of Credit （L／C） = 401
• Bankers Acceptances = 406
• Working Capital Financing = 409
• Medium­Term Capital Goods Financing （Forfaiting） = 409
• Countertrade = 410
• Agencies That Motivate International Trade = 410
• Export­Import Bank of the United States = 411
• Private Export Funding Corporation （PEFCO） = 413
• Overseas Private Investment Corporation （OPIC） = 413
• Other Considerations = 413
• Summary = 414
• Self­Test for Chapter 13 = 414
• Questions = 414
• Case Problem = 415
• Corporate Dilemma = 416
• Small Business Dilemma = 416
• Running Your Own MNC = 416
• Internet Applications = 417
• CHAPTER 14 SHORT­TERM FINANCING = 419
• Sources of Short­Term Financing = 419
• Internal Financing by MNCs = 420
• My MNCs Consider Foreign Financing = 420
• Foreign Financing to Offset Foreign Receivables = 420
• Foreign Financing to Reduce Costs = 420
• Determining the Effective Financing Rate = 421
• Criteria Considered for Foreign Financing = 424
• Interest Rate Parity = 424
• The Forward Rate as a Forecast = 426
• Exchange Rate Forecasts = 426
• Actual Results from Foreign Financing = 430
• Financing with a Portfolio of Currencies = 431
• Portfolio Diversification Effects = 434
• Repeated Financing with a Currency Portfolio = 435
• Summary = 436
• Self­Test for Chapter 14 = 437
• Questions = 437
• Case Problem = 441
• Corporate Dilemma = 442
• Small Business Dilemma = 443
• Running Your Own MNC = 443
• Internet Applications = 443
• Project = 445
• CHAPTER 15 INTERNATIONAL CASH MANAGEMENT = 447
• Cash Flow Analysis : Subsidiary Perspective = 447
• Centralized Cash Flow Management = 449
• Techniques to Optimize Cash Flows = 450
• Accelerating Cash Inflows = 451
• Minimizing Currency Conversion Costs = 451
• Minimizing Tax on Cash Flow = 452
• Managing Blocked Funds = 455
• Intersubsidiary Cash Transfers = 456
• Complications in Optimizing Cash Flow = 456
• Company­Related Characteristics = 456
• Government Restrictions = 456
• Characteristics of Banking Systems = 457
• Distortion of Subsidiary Performance = 457
• Investing Excess Cash = 458
• Centralized Cash Management = 458
• Determining the Effictive Yield = 459
• Implications of Interest Rate Parity = 462
• Use of the Forward Rate as a Forecast = 462
• Use of Exchange Rate Forecasts = 464
• Diversifying Cash Across Currencies = 469
• Using Dynamic Hedging to Hedge Investments = 470
• Summary = 470
• Self­Test for Chapter 15 = 471
• Questions = 471
• Case Problem = 474
• Corporate Dilemma = 476
• Small Business Dilemma = 476
• Running Your Own MNC = 477
• Internet Applications = 477
• Project = 478
• APPENDIX 15 : Investing in a Portfolio of Currencies = 479
• Repeated Investing in a Currency Portfolio = 482
• INTEGRATIVE PROBLEM FOR PART Ⅳ = 484
• PART Ⅴ LONG - TERM ASSET AND LIABILITY MANAGEMENT = 487
• CHAPTER 16 DIRECT FOREIGN INVESTMENT = 489
• Benefits of Direct Foreign Investment = 489
• Summary of Benefits of Direct Foreign Investment = 493
• Benefits of International Diversification = 495
• Numerical Example of Diversification Benefits = 495
• Diversification Benefits of Multiple Projects = 497
• Risk­Return Analysis of International Projects = 498
• Decisions Subsequent to DFI = 500
• Host Government View of DFI = 501
• Summary = 502
• Self­Test for Chapter 16 = 502
• Questions = 503
• Case Problem = 504
• Corporate Dilemma = 507
• Small Business Dilemma = 507
• Running Your Own MNC = 508
• Internet Applications = 508
• Project = 510
• CHAPTER 17 MULTINATIONAL CAPITAL BUDGETING = 511
• Subsidiary Versus Parent Perspective = 512
• Tax Differentials = 512
• Restricted Remittances = 512
• Excessive Remittances = 512
• Exchange Rate Movements = 513
• Input Used for Multinational Capital Budgeting = 514
• Multinational Capital Budgeting Example = 517
• Example : Background = 517
• Example : Analysis = 518
• Factors to Consider in Multinational Capital Budgeting = 521
• Exchange Rate Fluctuations = 521
• Inflation = 522
• Financing Arrangement = 523
• Blocked Funds = 527
• Uncertain Salvage Value = 527
• Impact of Project on Prevailing Cash Flows = 529
• Host Government Incentives = 530
• Adjusting Project Assessment for Risk = 530
• Risk­Adjusted Discount Rate = 530
• Sensitivity Analysis = 530
• Simulation = 531
• Summary = 532
• Self­Test for Chapter 17 = 532
• Questions = 533
• Case Problem = 538
• Corporate Dilemma = 540
• Small Business Dilemma = 541
• Running Your Own MNC = 541
• Internet Applications = 542
• Project = 543
• APPENDIX17 : Capital Budgeting for International Acquisitions and Divestitures = 544
• International Acquisitions = 544
• Factors Considered in International Acquisitions = 545
• Regulations Imposed on International Acquisitions = 547
• Acquisitions of Privatized Businesses = 548
• Trends in International Acquisitions = 548
• Partial International Acquisitions = 550
• Divestiture Analysis = 550
• War = 584
• Bureaucracy = 584
• Financial Risk Factors = 584
• Types of Country Risk Assessment = 585
• Macro Assessment of Country Risk = 585
• Micro Assessment of Country Risk = 587
• Techniques to Assess Country Risk = 588
• Checklist Approach = 588
• Delphi Technique = 588
• Quantitative Analysis = 588
• Inspection Visits = 589
• Combination of Techniques = 589
• Comparing Risk Ratings Among Countries = 589
• Quantifying Country Risk : An Example = 591
• Actual Country Risk Ratings Across Countries = 593
• Use of Country Risk Assessment = 596
• Incorporating Country Risk in Capital Budgeting = 596
• Applications of Country Risk Analysis = 600
• Exposure to Host­Government Takeovers = 602
• Reducing Exposure to Host Government Takeovers = 602
• Summary = 603
• Self­Test for Chapter 19 = 604
• Questions = 604
• Case Problem = 606
• Corporate Dilemma = 607
• Small Business Dilemma = 607
• Running Your Own MNC = 608
• Internet Applications = 608
• Project = 608
• CHAPTER 20 LONG­TERM FINANCING = 611
• Long­Term Financing Decision = 611
• Financing with a Stable Currency = 613
• Financing with a Strong Currency = 614
• Financing with a Weak Currency = 615
• Actual Bond Financing Costs = 616
• Comparing Bond Denomination Alternatives = 616
• Use of Exchange Rate Probabilities = 616
• Use of Simulation = 617
• Financing with Floating Rate Eurobonds = 618
• Exchange Rate Risk of Foreign Bonds = 618
• Hedging Exchange Rate Risk = 619
• Long­Term Financing in Multiple Currencies = 620
• Currency Cocktail Bonds = 621
• Using Swaps to Hedge Financing Costs = 621
• Interest Rate Swaps = 621
• Currency Swaps = 623
• Foreign Debt Maturity Decisions = 625
• Summary = 626
• Self­Test for Chapter 20 = 626
• Questions = 627
• Case Problem = 629
• Corporate Dilemma = 630
• Small Business Dilemma = 631
• Running Your Own MNC = 631
• Internet Applications = 631
• Project = 634
• CHAPTER 21 GLOBAL STRATEGIC PLANNING = 635
• Intonation Tax Characteristics = 635
• Corporate Income Taxes = 636
• Withholding Taxes = 636
• Provision for Carrybacks and Carryforwards = 637
• Tax Treaties = 637
• Tax Credits = 637
• Use of Transfer Pricing to Reduce Taxes = 639
• Influence of Tax Laws on MNC Policies = 640
• Short­Term Financing = 640
• Working Capital Management = 641
• Capital Structure Policy = 641
• Capital Budgeting = 641
• Multinational Corporate Policy = 642
• Agency Costs of International Business = 643
• Subsidiary Versus Centralized Management = 643
• Role of Subsidiary Due to Centralization = 644
• Conflict of Interests Among Corporate Departments = 645
• Accounting and Control = 645
• Summary = 646
• Self­Test for Chapter 21 = 646
• Questions = 646
• Case Problem = 647
• Corporate Dilemma = 649
• Small Business Dilemma = 649
• Running Your Own MNC = 649
• Internet Applications = 650
• Project = 651
• INTEGRATIVE PROBLEM FOR PART FIVE = 652
• APPENDIX A ANSWERS TO SELF­TEST QUESTIONS = A-1
• APPENDIX B FUNDAMENTALS of REGRESSION ANALYSIS = B-1
• APPENDIX C USING THE WORLD WIDE WEB FOR FINANCE = C-1
• APPENDIX D FOCUS ON AN MNC = D-1
• GLOSSARY = G-1
• DATA BANK = DB-1
• INDEX = I-1