Previous ed. published as: International financial management, 2002.

Includes bibliographical references and index.

PART 1: The International Financial Environment

1: MULTINATIONAL FINANCIAL MANAGEMENT: AN OVERVIEW

1-1 Managing the MNC

1-2 Why MNCs Pursue International Business

1-3 Methods to Conduct International Business

1-4 Valuation Model for an MNC

1-5 Organization of the Text



2: INTERNATIONAL FLOW OF FUNDS

2-1 Balance of Payments

2-2 Growth in International Trade

2-3 Factors Affecting International Trade Flows

2-4 International Capital Flows

2-5 Agencies That Facilitate International Flows



3: INTERNATIONAL FINANCIAL MARKETS

3-1 Foreign Exchange Market

3-2 International Money Market

3-3 International Credit Market

3-4 International Bond Market

3-5 International Stock Markets

3-6 How Financial Markets Serve MNCs

Appendix 3: Investing in International Financial Markets



4: EXCHANGE RATE DETERMINATION

4-1 Measuring Exchange Rate Movements

4-2 Exchange Rate Equilibrium

4-3 Factors That Influence Exchange Rates

4-4 Movements in Cross Exchange Rates

4-5 Capitalizing on Expected Exchange Rate Movements



5: CURRENCY DERIVATIVES

5-1 Forward Market

5-2 Currency Futures Market

5-3 Currency Options Market

5-4 Currency Call Options

5-5 Currency Put Options

5-6 Other Forms of Currency Options

Appendix 5A: Currency Option Pricing

Appendix 5B: Currency Option Combinations

Part 1 Integrative Problem: The International Financial Environment



PART 2: Exchange Rate Behavior

6: GOVERNMENT INFLUENCE ON EXCHANGE RATES

6-1 Exchange Rate Systems

6-2 A Single European Currency

6-3 Direct Intervention

6-4 Indirect Intervention

Appendix 6: Government Intervention during the Asian Crisis



7: INTERNATIONAL ARBITRAGE AND INTEREST RATE PARITY

7-1 Locational Arbitrage

7-2 Triangular Arbitrage

7-3 Covered Interest Arbitrage

7-4 Interest Rate Parity (IRP)

7-5 Variation in Forward Premiums



8: RELATIONSHIPS AMONG INFLATION, INTEREST RATES, AND EXCHANGE RATES

8-1 Purchasing Power Parity (PPP)

8-2 International Fisher Effect (IFE)

Part 2 Integrative Problem: Exchange Rate Behavior

Midterm Self-Exam



PART 3: Exchange Rate Risk Management

9: FORECASTING EXCHANGE RATES

9-1 Why Firms Forecast Exchange Rates

9-2 Forecasting Techniques

9-3 Assessment of Forecast Performance

9-4 Accounting for Uncertainty Surrounding Forecasts



10: MEASURING EXPOSURE TO EXCHANGE RATE FLUCTUATIONS

10-1 Relevance of Exchange Rate Risk

10-2 Transaction Exposure

10-3 Economic Exposure

10-4 Translation Exposure



11: MANAGING TRANSACTION EXPOSURE

11-1 Policies for Hedging Transaction Exposure

11-2 Hedging Exposure to Payables

11-3 Hedging Exposure to Receivables

11-4 Limitations of Hedging

11-5 Alternative Methods to Reduce Exchange Rate Risk

Appendix 11: Nontraditional Hedging Techniques



12: MANAGING ECONOMIC EXPOSURE AND TRANSLATION EXPOSURE

12-1 Managing Economic Exposure

12-2 A Case Study on Hedging Economic Exposure

12-3 Managing Exposure to Fixed Assets

12-4 Managing Translation Exposure

Part 3 Integrative Problem: Exchange Risk Management



PART 4: Long-Term Asset and Liability Management

13: DIRECT FOREIGN INVESTMENT

13-1 Motives for Direct Foreign Investment

13-2 Benefits of International Diversification

13-3 Host Government Impact on DFI

13-4 Assessing Potential DFI



14: MULTINATIONAL CAPITAL BUDGETING

14-1 Subsidiary versus Parent Perspective

14-2 Input for Multinational Capital Budgeting

14-3 Multinational Capital Budgeting Example

14-4 Other Factors to Consider

14-5 Adjusting Project Assessment for Risk

Appendix 14: Incorporating International Tax Law in Multinational Capital Budgeting



15: INTERNATIONAL CORPORATE GOVERNANCE AND CONTROL

15-1 International Corporate Governance

15-2 International Corporate Control

15-3 Factors Affecting Target Valuation

15-4 A Case Study of Valuing a Foreign Target

15-5 Disparity in Foreign Target Valuations

15-6 Other Corporate Control Decisions

15-7 Corporate Control Decisions as Real Options



16: COUNTRY RISK ANALYSIS

16-1 Country Risk Characteristics

16-2 Measuring Country Risk

16-3 Incorporating Risk in Capital Budgeting

16-4 Preventing Host Government Takeovers



17: MULTINATIONAL CAPITAL STRUCTURE AND COST OF CAPITAL

17-1 Components of Capital

17-2 The MNC’s Capital Structure Decision

17-3 Subsidiary versus Parent Capital Structure Decisions

17-4 Multinational Cost of Capital

17-5 Cost of Capital across Countries



18: LONG-TERM DEBT FINANCING

18-1 Debt Denomination Decision of Foreign Subsidiaries

18-2 Debt Denomination Analysis: A Case Study

18-3 Loans Facilitate Financing

18-4 Debt Maturity Decision

18-5 Fixed versus Floating Rate Debt Decision

Part 4 Integrative Problem: Long-Term Asset and Liability Management



PART 5: Short-Term Asset and Liability Management

19: FINANCING INTERNATIONAL TRADE

19-1 Payment Methods for International Trade

19-2 Trade Finance Methods

19-3 Agencies That Facilitate International Trade



20: SHORT-TERM FINANCING

20-1 Sources of Foreign Financing

20-2 Financing with a Foreign Currency

20-3 Financing with a Portfolio of Currencies



21: INTERNATIONAL CASH MANAGEMENT

21-1 Multinational Working Capital Management

21-2 Centralized Cash Management

21-3 Optimizing Cash Flows

21-4 Investing Excess Cash

Part 5 Integrative Problem: Short-Term Asset and Liability Management

Final Self-Exam

Appendix A: Answers to Self-Test Questions

Appendix B: Supplemental Cases

Appendix C: Using Excel to Conduct Analysis

Appendix D: International Investing Project

Appendix E: Discussion in the Boardroom

Appendix F: Use of Bitcoin to Conduct International Transactions

Glossary

Index

Equip your students for success in international finance with the unrivaled depth of theory and practical applications presented in Madura's INTERNATIONAL FINANCIAL MANAGEMENT, 13E. Using a strong corporate perspective, it discusses a wide range of managerial topics and emphasizes the most recent changes in the international environment. Relevant examples, instructive diagrams, self-tests, and other learning features provide hands-on experience to help your students develop the skills they need to effectively manage in contemporary practice.

*Special prices for countries of South-Asia

eff Madura, Florida Atlantic University

Dr Jeff Madura is Emeritus Professor of Finance at Florida Atlantic University. He has written several successful finance texts, including Financial Markets and Institutions (now in its 12th edition). His research on international finance has been published in numerous journals, including Journal of Financial and Quantitative Analysis; Journal of Banking and Finance; Journal of Money, Credit and Banking; Journal of International Money and Finance; Financial Management; Journal of Financial Research; Financial Review; Journal of International Financial Markets, Institutions and Money; Global Finance Journal; International Review of Financial Analysis and Journal of Multinational Financial Management. Dr Madura has received multiple awards for excellence in teaching and research, and he has served as a consultant for international banks, securities firms and other multinational corporations. He served as a director for the Southern Finance Association and the Eastern Finance Association, and he is also former president of the Southern Finance Association.