International Financial Economics

International Financial Economics

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International Financial Economics: Corporate Decisions in Global Markets 2e applies principles and theory of financial economics to international corporate finance decisions. After a section on exchange rates, the second section of the text looks at a firm's foreign exchange exposure measurement and hedging in depth. Attention is paid to the connection between foreign exchange exposure in profit and the foreign exchange exposure in equity. The impact of foreign currency debt and currency swaps is emphasised. The third and final section of the text examines overseas investment decisions in both developed countries that are integrated with the global financial market and emerging countries that are still somewhat segmented. Measurement of the cost of capital for overseas investments is emphasised, as is the accounting for overseas investments and hedging of foreign exchange risk.Contents:I. Foreign Exchange Rates1. Introduction to Foreign Exchange2. Foreign Exchange and Purchasing Power3. Forward Foreign Exchange4. Interest Rates and Foreign ExchangeII. Long-Term Foreign Exchange Exposure5. Foreign Exchange Operating Exposure6. Debt and Foreign Exchange Exposure7. Currency Swaps8. Economic Foreign Exchange ExposureIII. Cost of Capital and Cross-Border Investments9. Global Finance and the Cost of Capital10. Cost of Capital for Overseas Investments11. Accounting for Foreign Investments and Hedging12. Cross-Border Investment DecisionsIndexThe swap let IBM receive cash flows of Swiss francs from the World Bank, and the World Bank to receive US dollars from ... IBM used the currency swap as an expeditious way to convert Swiss franc debt into US dollar debt, without having to anbsp;...

Title:International Financial Economics
Author:Thomas J. O'Brien
Publisher:Oxford University Press, USA - 2006


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