Description

International finance is the study of financial decisions and activities that cross national borders. It is especially important for multinational companies because exchange rates, international markets, different financial systems, and country-specific risks can significantly affect business decisions.

The book combines fundamental financial concepts with a managerial perspective, helping students understand how companies make informed financial decisions in international markets.

Main topics

• Globalization and multinational firms – how companies operate across countries.
• International monetary system – the structure and development of the global monetary system.
• Balance of payments – recording a country’s international economic transactions.
• Foreign exchange markets – how currencies are traded and exchange rates are determined.
• Exchange-rate relationships – purchasing power parity, interest-rate parity, and exchange-rate forecasting.
• Currency derivatives – futures, options, and other instruments used to manage currency risk.
• Foreign exchange exposure – managing the effects of exchange-rate changes on businesses.