International Financial Management ^{2nd Ed.}

The overriding objective of the International Financial Management, is to teach students how to be effective global financial managers. The text covers the fundamentals of the macroeconomic environment of international financial management, discusses the financial environment in which the multinational firm and its managers must function, and covers foreign exchange management and financial management in a multinational firm.

• Part One: Foundations of International Financial Management
1. Globalization and the Multinational Firm
• What's Special about International Finance?
• Foreign Exchange and Political Risks
• Market Imperfections
• Expanded Opportunity Set
• Goals for International Finance Management
• Globalization of the World Economy: Recent Trends
• Emergence of Globalized Financial Markets
• Trade Liberalization and Economic Integration
• Privatization
• Multinational Corporations
• Organization of the Text
• Summary
• Appendix 1A: Gains from Trade: The Theory of Comparative Advantage
  
2. International Monetary System
• Evolution of the International Monetary System
• Bimetallism: Before 1875
• Classical Gold Standard: 1875-1914
• Interwar Period: 1915-1944
• Bretton Woods System: 1945-1972
• The Flexible Exchange Rate Regime: 1973-Present
• The Current Exchange Rate Arrangements
• European Monetary System
• Euro and the European Monetary Union
• The Mexican Peso Crisis
• The Asian Currency Crisis
• Fixed versus Flexible Exchange Rate Regimes
  
• Summary
• Mini Case: Will the U.K. Join the Euro Club?
  
3. Balance of Payments
• Balance-of-Payments Accounting
• Balance-of-Payments Accounts
• The Current Account
• The Capital Account
• Statistical Discrepancy
• Official Reserves Account
• The Balance-of-Payments Identity
• The Balance-of-Payments Trends in Major Countris
  
• Summary
• Mini Case: Mexico's Balance-of-Payments Problem
  
4. The Market for Foreign Exchange
• Function and Structure of the FOREX Market
• FX Market Participantas
• Correspondent Banking Relationship
• The Spot Market
• Spot Rate Quotations
• The Bid-Ask Spread
• Spot FX Trading
• Cross Exchange Rate Quotations
• Alternative Expressions for the Cross-Exchange Rate
• The Cross-Rate Trading Desk
• Triangular Arbitrage
• Spot Foreign Exchange Market Microstructure
• The Forward Market
• Forward Rate Quotations
• Long and Short Forward Positions
• Forward Cross Exchange Rates
• Swap Transactions
• Forward Premium
  
• Summary
• Mini Case: Shrewsbury Herbal Products, Ltd.
  
5. International Parity Relationships and Forecasting Foreign Exchange Rates
• Interest Rate Parity
• Covered Interest Arbitrage
• Interest Rate Parity and Exchange Rate Determination
• Reasons for Deviations from Interest Rate Parity
• Purchasing Power Parity
• PPP Deviations and the Real Exchange Rate
• Evidence on Purchasing Power Parity
• The Fisher Effects
• Forecasting Exchange Rates
• Efficient Market Approach
• Fundamental Approach
• Technical Approach
• Performace of the Forecasters
  
• Summary
• Appendix 5A: Purchasing Power Parity and Exchange Rate Determination
  
• Part Two: World Financial Markets and Institutions
6. International Banking and Money Market
• International Baning Services
• The World Largest Banks
• Reasons for International Banking
• Types of International Banking Offices
• Correspondent Bank
• Representative Offices
• Foreign Branch
• Subsidiary and Affiliate Banks
• Edge Act Banks
• Offshore Banking Centers
• International Banking Facilities
• Capital Adequacy Standards
• International Money Market
• Eurocurrency Market
• Eurocredits
• Forward Rate Agreements
• Euronotes
• Euro-Medium-Term Notes
• Eurocommercial Paper
• International Debt Crisis
• History
• Debt-for-Equity Swaps
• The Solution: Brady Bonds
• The Asian Crisis
• Summary
• Mini Case: Detroit Motors' Latin American Expansion
  
• Appendix 6A: Eurocurrency Creation
  
7. International Bond Market
• The Worlds' Bond Markets: A Statistical Perspective
• Foreign Bonds and Eurobonds
• Bearer Bonds and Registered Bonds
• National Security Regulations
• Withholding Taxes
• Other Recent Regulatory Changes
• Global Bonds
• Types of Instruments
• Straight Fixed-Rate Issues
• Floating-Rate Issues
• Equity-Related Bonds
• Zero-Coupon Bonds
• Dual-Currency Bonds
• Composite Currency Bonds
• Currency Distribution, Nationality, and Type of Issuer
• International Bond Market Credit Ratings
• Eurobond Market Structure and Practices
• Primary Market
• Secondary Market
• Clearing Procedures
• International Bond Market Indexes
  
• Summary
8. International Equity Markets
• A Statistical Perspective
• Market Capitalization of Developed Countrues
• Market Capitalization of Developing Countries
• Measures of Liquidity
• Measures of Market Concentration
• Market Structure, Trading Practices, and Costs
• International Equity Market Benchmarks
• World Equity Benchmark Shares
• Trading in International Equities
• Cross-Listing of Shares
• Yankee Stock Offerings
• The European Stock Market
• American Depository Receipts
• Factors Affecting International Equity Returns
• Macroeconomic Factors
• Exchange Rates
• Industrial Structure
  
• Summary
  
9. Futures and Options on Foreign Exchange
• Futures Contracts: Some Preliminaries
• Currency Futures Markets
• Basic Currency Futures Relationships
• Eurodollar Interest Rate Futures Contracts
• Options Contracts: Some Preliminaries
• Currency Options Markets
• Curency Futures Options
• Basic Option-Pricing Relationship at Expiration
• American Option-Pricing Relationships
• European Option-Pricing Relationships
• Binominal Option-Pricing Formula
• Empirical Tests of Currency Options
  
• Summary
• Mini Case: The Options Speculator
  
10. Currency and Interest Rate Swaps
• Types of Swaps
• Size of the Swap Market
• The Swap Bank
• Interest Rate Swap
• Basic Interest Rate Swap
• Currency Swaps
• Parallel Loans
• Back-to-Back Loans
• Institutional Difficulties of Parallel and Back-to-Back Loans
• Basic Currency Swap
• Swap Market Quotations
• Variations of Basic Currency and Interest Rate Swaps
• Risks of Interest Rate and Currency Swaps
• Is the Swap Market Efficient?
• Concluding Points about Swaps
  
• Summary
• Mini Case: The Centralia Corporation's Currency Swap
  
11. International Portfolio Investments
• International Correlation Structure and Risk Diversification
• Optimal International Portfolio Selection
• Effects of Change in the Exchange Rate
• International Bond Investment
• International Mutual Funds: A Performance Evaluation
• International Diversification through Country Funds
• International Diversification with ADRs
• International Diversification with WEBS
• Why Home Bias in Portfolio Holdings?
  
• Summary
• Mini Case: Solving for the Optimal International Portfolio
• Appendix 11A: International Investment with Exchange Risk Hedging
  
• Appendix 11B: Solving for the Optimal Portfolio
  
• Part Three: Foreign Exchange Exposure and Management
12. Management of Economic Exposure
• Three Types of Exposures
• How to Measure Economic Exposure
• Operating Exposure: Definition
• Illustration of Operating Exposure
• Determinants of Operating Exposure
• Managing Operating Exposure
• Selecting Low-Cost Production Sites
• Flexible Sourcing Policy
• Diversification of the Market
• R&D Efforts and Product Differentiation
• Financial Hedging
• Illustrated Mini Case: Exchange Risk Management at Merck
• Step 1: Exchange Forecasting
• Step 2: Assessing Strategic Plan Impact
• Step 3: Deciding Whether to Hedge
• Step 4: Selecting the Hedging Instruments
• Step 5: Constructing a Hedging Program
  
• Summary
• Mini Case: Economic Exposure of Albion Computers PLC
  
13. Management of Transaction Exposure
• Forward Market Hedge
• Money Market Hedge
• Options Market Hedge
• Cross-Hedging Minor Currency Exposure
• Hedging Contingent Exposure
• Hedging Recurrent Exposure with Swap Contracts
• Hedging through Invoice Currency
• Hedging via Lead and Lag
• Exposure Netting
• Should the Firm Hedge?
• What Risk Management Products Do Firms Use?
  
• Summary
• Mini Case: Chase Options, Inc.
  
14. Management of Translation Exposure
• Translation Methods
• Current/Noncurrent Method
• Monetary/Nonmonetary Method
• Temporal Method
• Current Rate Method
• Financial Accounting Standards Board Statement 8
• Financial Accounting Standards Board Statement 52
• The Mechanics of the FASB 52 Translation Process
• Highly Inflationary Economies
• Illustrated Mini Case: Consolidation of Accounts to FASB 52: The Centralia Corporation
• Management of Translation Exposure
• Translation Exposure versus Transaction Exposure
• Hedging Translation Exposure
• Balance Sheet Hedge
• Derivatives Hedge
• Translation Exposure versus Operating Exposure
• Empirical Analysis of the Change from FASB 8 to FASB 52
  
• Summary
• Mini Case: Sundance Sporting Goods, Inc.
  
• Part Four: Financial Management of the Multinational Firm
15. Foreign Direct Investment
• Global Trends in FDI
• Why Do Firms Invest Overseas?
• Trade Barriers
• Imperfect Labor Market
• Intangible Assets
• Vertical Integration
• Product Life Cycle
• Shareholder Diversification Services
• Cross-Border Acquisitions
• Political Risk and FDI
  
• Summary
• Mini Case: Enron in India
  
16. International Capital Structuring and the Cost of Capital
• Cost of Capital
• Cost of Capital in Segmented versus Integrated Markets
• Does the Cost of Capital Differ among Countries?
• Illustrated Mini Case: Novo
• Cross-Border Listings of Stocks
• Capital Asset Pricing under Cross-Listings
• The Effect of Foreign Equity Ownership Restrictions
• Pricing-to-Market Phenomenon
• Illustrated Mini Case: Netslé
• Assets Pricing under Foreign Ownership Restrictions
• The Financial Structure of Subsidiaries
  
• Summary
• Appendix 16A: Pricing of Nontradable Assets: Numerical Simulations
17. International Capital Budgeting
• Review of Domestic Capital Budgeting
• The Adjusted Present Value Model
• Capital Budgeting from the Parent Firm's Perspective
• Generality of the APV Model
• Estimating the Future Expected Exchange Rate
• Illustrated Mini Case: The Centralia Corporation
• Risk Adjustment in the Capital Budgeting Analysis
• Sensitivity Analysis
• Real Options
  
• Summary
• Mini Case: Dorchester, Ltd.
  
• Mini Case: Strike-It Rich Gold Mining Company
  
18. Multinational Cash Management
• The Management of International Cash Balances
• Illustrated Mini Case: Teltrex's Cash Management System
• Netting Systems
• Centralized Cash Depository
• Bilateral Netting of Internal and External Net Cash Flows
• Reduction in Precautionary Cash Balances
• Cash Management Systems in Practice
• Transfer Pricing and Related Issues
• Illustrated Mini Case: Mintel Products Transfer Pricing Strategy
• Low versus High Markup Policy
• Exchange Restrictions
• Differential Income Tax Rates
• Regulations Affecting Transfer Pricing
• Import Duties
• Unbundling Fund Transfers
• Miscellaneous Factors
• Blocked Funds
  
• Summary
• Mini Case 1: Efficient Funds Flow at Eastern Trading Company
• Mini Case 2: Eastern Trading Company's Optimal Transfer Pricing Strategy
• Mini Case 3: Eastern Trading Company's New MBA
19. Exports and Imports
• A Typical Foreign Trade Transaction
• Forfaiting
• Government Assistance in Exporting
• The Export-Import Bank and Affiliated Organizations
• Countertrade
• Forms of Countertrade
• Some Generalizations about Countertrade
  
• Summary
• Mini Case: American Machine Tools, Inc.
  
20. International Tax Environment
• The Objectives of Taxation
• Tax Neutrality
• Tax Equity
• Types of Taxation
• Income Tax
• Withholding Tax
• Value-Added Tax
• National Tax Environments
• Worldwide Taxation
• Territorial Taxation
• Foreign Tax Credits
• Organizational Structures for Reducing Tax Liabilities
• Branch and Subsidiary Income
• Payments to and from Foreign Affiliates
• Tax Havens
• Controlled Foreign Corporation
• Foreign Sales Corporation
  
• Summary
  

This has to be one of the best books on international finance I've ever read!

Granted, it doesn't act as a beginners book, but it goes through so many advanced and real examples, that it may be called a mini-MBA in itself.

A book that any self-deserving CFO should have in his bookcase, even if s/he is not into international finance, as it covers the basics very good.