Jacque, Laurent <br/><br/>
International corporate finance: value creation with currency derivatives in global capital markets, second edition 

 - 2nd 
 - New Jersey  John Wiley & Sons, Inc.  2020 
 - xxvii, 801 p. 
<br/><br/>TABLE OF CONTENTS<br/>Preface xvii<br/><br/>Acknowledgments xxv<br/><br/>About the Author xxvii<br/><br/>Chapter 1 What is International Corporate Finance? 1<br/><br/>The Uneven Reach of Globalization 2<br/><br/>The Rise of the Multinational Corporation 3<br/><br/>What is Different about International Corporate Finance? 6<br/><br/>Risks in the Wonderland of International Finance 8<br/><br/>Internationalization and the Locus of the Finance Function 12<br/><br/>The International Control Conundrum 15<br/><br/>Exploiting The Multinational Enterprise System 16<br/><br/>Summary 19<br/><br/>Questions for Discussion 19<br/><br/>References 20<br/><br/>Part One The International Monetary Environment 21<br/><br/>Chapter 2 Exchange Rates Regimes 23<br/><br/>Some First Principles about Exchange Rate Determination 24<br/><br/>World Map of Exchange Rate Regimes: The Flexibility × Convertibility Space 29<br/><br/>Floating Exchange Rates 31<br/><br/>Stabilized or Pegged Exchange Rates 39<br/><br/>Controlled Exchange Rates 46<br/><br/>To Float or to Fix: The Trilemma of International Finance 49<br/><br/>Summary 50<br/><br/>Questions for Discussion 51<br/><br/>Problems 52<br/><br/>Internet Exercises 54<br/><br/>References 54<br/><br/>Chapter 3 Yesterday and Yesteryear 57<br/><br/>Chronology of the International Monetary System 58<br/><br/>The Gold Standard (1878–1914, 1925–1931) 61<br/><br/>The Bretton Woods System (1944–1971) 63<br/><br/>Managed Floating Exchange Rates (1973–Present) 67<br/><br/>European Monetary System and the European Currency Unit (1979–1999) 68<br/><br/>Emerging Markets Currency Regimes and Crises 72<br/><br/>European Monetary Union and the Birth of the Euro (1999–Present) 76<br/><br/>Today and Tomorrow: The Current Map of Exchange Rates 84<br/><br/>Summary 86<br/><br/>Questions for Discussion 87<br/><br/>Problems 88<br/><br/>Internet Exercises 90<br/><br/>References 90<br/><br/>Case Study 3.1: Will the Eurozone Shutter? Plant Location and Exchange Rates for Hyundai 91<br/><br/>Chapter 4 The Balance of Payments 99<br/><br/>Fundamentals of Balance of International Payments Accounting 100<br/><br/>Current Account 105<br/><br/>Financial Account 107<br/><br/>Official Reserve Account 109<br/><br/>Statistical Discrepancies: Errors and Omissions 111<br/><br/>Balance of Payments and the Foreign Exchange Market 111<br/><br/>Debtor Versus Creditor Nations 115<br/><br/>Linking the Balance of Payments to National Income 118<br/><br/>Summary 119<br/><br/>Questions for Discussion 120<br/><br/>Problems 121<br/><br/>Internet Exercises 122<br/><br/>References 124<br/><br/>Case Study 4.1: When One of the BRIC(k)s Falls: Trials and Tribulations of the Indian Rupee 124<br/><br/>Part Two The Foreign Exchange Market and Currency Derivatives 129<br/><br/>Chapter 5 The Foreign Exchange Market 131<br/><br/>How Forex is Traded: The Institutional Framework 132<br/><br/>Foreign Exchange Products 140<br/><br/>Exchange Rate Quotations 142<br/><br/>Summary 155<br/><br/>Questions for Discussion 156<br/><br/>Problems 157<br/><br/>Internet Exercises 160<br/><br/>References 160<br/><br/>Case Study 5.1: Banco Mercantil Internacional’s Forex Losses 160<br/><br/>Chapter 6 Interest Rate Arbitrage and Parity 165<br/><br/>Interest Rate Arbitrage Theorem 166<br/><br/>Interest Rate Parity 174<br/><br/>Uncovered Interest Rate Arbitrage and the Carry Trade 181<br/><br/>Summary 184<br/><br/>Appendix 6A: Transaction Costs: Interest Rate Arbitarge with Bid-Ask Spreads (Advanced) 185<br/><br/>Appendix 6B: Interest Rate Parity and Asymmetric Taxation 187<br/><br/>Questions for Discussion 188<br/><br/>Problems 188<br/><br/>Internet Exercises 195<br/><br/>References 195<br/><br/>Case Study 6.1: Brazil Rede Globo’s Short-Term Funding 195<br/><br/>Chapter 7 Purchasing Power Parity and the International Parities Framework 199<br/><br/>Purchasing Power Parity 200<br/><br/>The Linkages Between Interest, Inflation, and Exchange Rates 213<br/><br/>Questions for Discussion 220<br/><br/>Problems 220<br/><br/>Internet Exercises 221<br/><br/>References 222<br/><br/>Chapter 8 Currency Futures and Options 223<br/><br/>A Brief History of Derivatives 223<br/><br/>Currency Futures 228<br/><br/>Currency Options 234<br/><br/>Risk Profile of Currency Options 236<br/><br/>Option Strategies 239<br/><br/>Put-Call Parity Theorem 245<br/><br/>The Valuation of Currency Options 248<br/><br/>Derivatives and Zero-Premium Options 254<br/><br/>Summary 258<br/><br/>Appendix 8A: Pricing Currency Options 259<br/><br/>Questions for Discussion 261<br/><br/>Problems 261<br/><br/>Internet Exercises 264<br/><br/>References 264<br/><br/>Case Study 8.1: Daewoo’s Unorthodox Funding Strategy 264<br/><br/>Part Three International Financing 269<br/><br/>Chapter 9 The International Financial Sector and the Dynamics of Global Capital Markets 271<br/><br/>Financing as a Global Procurement Decision 272<br/><br/>The Financial System and Financial (Dis)Intermediation 273<br/><br/>Securitization and the (Lower) Cost of Consumer Financing 281<br/><br/>Deregulation 287<br/><br/>Mapping the Financial System/Capital Market Emergence Process 290<br/><br/>Summary 297<br/><br/>Questions for Discussion 298<br/><br/>Problems 298<br/><br/>Internet Exercises 300<br/><br/>References 300<br/><br/>Case Study 9.1: How Thai Airways FOILs Jet Fuel Price Risk 301<br/><br/>Chapter 10 Sourcing Equity Globally 307<br/><br/>A Grand Tour of Equity Markets 308<br/><br/>Global Equity Financing as a Procurement Decision 317<br/><br/>Internationalizing the Cost of Capital: The Landmark Case of Novo Industri 318<br/><br/>Why do Firms Cross-List? 323<br/><br/>How to Source Equity Globally 325<br/><br/>Summary 331<br/><br/>Questions for Discussion 332<br/><br/>Problems 333<br/><br/>Internet Exercises 334<br/><br/>References 335<br/><br/>Case Study 10.1: Jazztel’s Foreign IPO 335<br/><br/>Chapter 11 Sourcing Debt from Global Bond Markets 345<br/><br/>The International Debt Procurement Decision 346<br/><br/>Grand Tour of the Global Debt Market 347<br/><br/>Cost of Foreign Currency Debt Financing 356<br/><br/>Debt Refinancing 361<br/><br/>The International Debt Financing Conundrum 364<br/><br/>Summary 366<br/><br/>Questions for Discussion 366<br/><br/>Problems 367<br/><br/>Internet Exercises 372<br/><br/>References 372<br/><br/>Case Study 11.1: McDonald’s Dim Sum Bonds: “Lovin’ It” 372<br/><br/>Chapter 12 Currency, Interest Rate, and Credit Default Swaps 377<br/><br/>Currency Swaps 378<br/><br/>Interest Rate Swaps 383<br/><br/>Credit Default Swaps 391<br/><br/>Summary 397<br/><br/>Questions for Discussion 397<br/><br/>Problems 398<br/><br/>Internet Exercises 400<br/><br/>References 400<br/><br/>Case Study 12.1: The Demise of AIG 400<br/><br/>Chapter 13 International Trade Financing 405<br/><br/>A Brief History of International Trade 406<br/><br/>The Trilogy of Risks in Exporting 407<br/><br/>Managing Credit Risk 409<br/><br/>Managing Currency Risk 410<br/><br/>Managing Country Risk 411<br/><br/>The Mechanics of Trade Financing with a Letter of Credit 412<br/><br/>Financing Exports 415<br/><br/>Pre-Export Financing 418<br/><br/>Government-Sponsored Export Credit Agencies 422<br/><br/>Summary 423<br/><br/>Questions for Discussion 424<br/><br/>Problems 424<br/><br/>Internet Exercises 426<br/><br/>Case Study 13.1: Warrick Pharmaceuticals Inc. 426<br/><br/>Part Four Managing Foreign Exchange Risk 431<br/><br/>Chapter 14 The Case for Foreign Exchange Risk Management 433<br/><br/>Defining Foreign Exchange Risk Management and its Objectives 435<br/><br/>Can Hedging Currency Risk Increase the Value of the Firm? 437<br/><br/>When is Hedging Currency Risk Irrelevant? 440<br/><br/>From Hedging to Managing Currency Risk 441<br/><br/>The Building Blocks of Foreign Exchange Risk Management 443<br/><br/>Summary 445<br/><br/>Appendix 14A: Foreign Exchange Risk Management: What do Firms do? 446<br/><br/>Questions for Discussion 446<br/><br/>References 447<br/><br/>Case Study 14.1: Bio-Oils Energy S.L. 447<br/><br/>Chapter 15 Forecasting Exchange Rates 455<br/><br/>Market-Based Forecasts 456<br/><br/>Model-Based Forecasts: Technical Versus Econometric Modeling Approaches 461<br/><br/>Composite Forecasts 468<br/><br/>How to Use Currency Forecasts 469<br/><br/>Summary 470<br/><br/>Appendix 15A: Forecasting Pegged Yet Adjustable Exchange Rates 470<br/><br/>Questions for Discussion 476<br/><br/>Problems 477<br/><br/>Internet Exercises 479<br/><br/>References 479<br/><br/>Case Study 15.1: Euclides Engineering, Ltd. 480<br/><br/>Chapter 16 Managing Transaction Exposure 483<br/><br/>Measuring Transaction Exposure 484<br/><br/>The Mechanics of Hedging Transaction Exposure 488<br/><br/>Hedging and Financing International Trade 500<br/><br/>Eliminating Foreign Exchange Rate Risk in Long-Term Contracts 501<br/><br/>Exchange Rate Risk in International Bidding 508<br/><br/>How Much to Hedge Transaction Exposure 512<br/><br/>Summary 513<br/><br/>Questions for Discussion 514<br/><br/>Problems 514<br/><br/>References 520<br/><br/>Case Study 16.1: Hedging Currency Risk at TT Textiles 521<br/><br/>Chapter 17 Managing Translation Exposure 531<br/><br/>What is Translation Exposure? 531<br/><br/>Should Translation Exposure be Hedged? 532<br/><br/>Alternative Translation Methods 533<br/><br/>The Mechanics of Contractual Hedging 539<br/><br/>The Mechanics of Financial Hedging 546<br/><br/>Summary 550<br/><br/>Appendix 17A: Accounting Valuation and the Concept of Translation Exposure 551<br/><br/>Questions for Discussion 555<br/><br/>Problems 555<br/><br/>Internet Exercises 560<br/><br/>References 560<br/><br/>Case Study 17.1: Wilkinson Sword’s Trials and Tribulations in Turkey 560<br/><br/>Chapter 18 Managing Economic Exposure 567<br/><br/>A Taxonomy of Economic Exposures 568<br/><br/>Toward an Operational Measure of Economic Exposure 575<br/><br/>Managing Operating Exposure 578<br/><br/>Summary 583<br/><br/>Questions for Discussion 584<br/><br/>Problems 584<br/><br/>References 587<br/><br/>Case Study 18.1: Peugeot Citroën SA’s Economic Exposure to the South Korean Won 588<br/><br/>Part Five Cross-Border Valuation and Foreign Investment Analysis 591<br/><br/>Chapter 19 Foreign Market Entry Strategies and Country Risk Management 593<br/><br/>Contractual Modes of Foreign Market Entry 594<br/><br/>Foreign Market Entry Through Foreign Direct Investments 599<br/><br/>Country Risk 600<br/><br/>Costs/Benefits of Foreign Direct Investment to Host Countries 608<br/><br/>Summary 612<br/><br/>Questions for Discussion 613<br/><br/>Internet Exercises 613<br/><br/>References 614<br/><br/>Case Study 19.1: Carrefour’s Indian Entry Strategy 614<br/><br/>Chapter 20 International Capital Budgeting 619<br/><br/>The Foreign Direct Investment Decision-Making Process 619<br/><br/>A Primer on Evaluating Investment Opportunities 622<br/><br/>What is Different About Evaluating Foreign Investment Proposals? 624<br/><br/>Case Study: Renault Invests in India 629<br/><br/>Global Cost of Equity Capital 639<br/><br/>Optimal Worldwide Capital Structure 643<br/><br/>Summary 644<br/><br/>Appendix 20A: Adjusted Present Value 645<br/><br/>Appendix 20B: Real Options 648<br/><br/>Questions for Discussion 656<br/><br/>Problems 656<br/><br/>Internet Exercises 660<br/><br/>References 660<br/><br/>Chapter 21 Cross-Border Mergers and Acquisitions 661<br/><br/>A Brief History of Mergers and Acquisitions 662<br/><br/>The Industrial Logic of Mergers and Acquisitions 662<br/><br/>Are Cross-Border Acquisitions Different? 664<br/><br/>Valuation of Foreign Acquisitions 671<br/><br/>Ciments Lafarge Enters Vietnam 673<br/><br/>Summary 680<br/><br/>Questions for Discussion 681<br/><br/>Problems 681<br/><br/>Internet Exercises 683<br/><br/>Case Study 21.1: Etihad’s Proposed Acquisition of Malaysia Airlines 684<br/><br/>Chapter 22 Project Finance 689<br/><br/>What is Project Finance? 690<br/><br/>Anatomy of Project Finance: The Case of the Ras Laffan Liquefied Natural Gas Company 696<br/><br/>Valuing Project Finance: The Esty Model 696<br/><br/>Summary 704<br/><br/>Questions for Discussion 705<br/><br/>References 705<br/><br/>Case Study 22.1: Clean Infra Ltd Project Finance 706<br/><br/>Chapter 23 Global Investing 713<br/><br/>The Basics of International Portfolio Management 714<br/><br/>The Gains from International Diversification 722<br/><br/>Trials and Tribulations in Foreign Equity Investing 729<br/><br/>Currency Risk in Global Investing 730<br/><br/>Alternative Modes of Investing in Foreign Equity 733<br/><br/>The New Landscape of Global Investing 734<br/><br/>Summary 741<br/><br/>Appendix 23A: In Search of Alpha at Global Thematic Partner is found on the Book Website at www.wiley.com/go/intlcorpfinance2e 741<br/><br/>Questions for Discussion 742<br/><br/>Problems 742<br/><br/>Internet Exercises 744<br/><br/>References 744<br/><br/>Part Six Managing the Multinational Financial System 747<br/><br/>Chapter 24 Managing the Multinational Financial System 749<br/><br/>A Primer on International Taxation 749<br/><br/>The Multinational Financial System 753<br/><br/>Exploiting the System’s Potential to Minimize Global Tax Liabilities 755<br/><br/>Designing a Global Dividends Remittance Strategy 761<br/><br/>Centralizing Cash Management 765<br/><br/>Summary 774<br/><br/>Questions for Discussion 775<br/><br/>Problems 775<br/><br/>Internet Exercises 777<br/><br/>References 777<br/><br/>Appendix: Answers to Selected Problems 779<br/><br/>About the Companion Website 787<br/><br/>Index 789<br/><br/>Continued on the Website<br/><br/>Chapter 25 International Control Conundrum (extension of Part 6) 805<br/><br/>A Primer on Managerial Control 806<br/><br/>The International Control Conundrum 809<br/><br/>EVA-Based Contingent Budgeting and Performance Assessment 815<br/><br/>Summary 821<br/><br/>Appendix 25A: Applying The EVA-Based Control System 822<br/><br/>Questions for Discussion 826<br/><br/>References 826<br/><br/>Chapter 26 Asian Finance and Banking (extension of Part 3) 827<br/><br/>Asian Finance: Common Historical Roots, Diverse Paths 828<br/><br/>Adaptive Responses: Crises and Institutional Change in Asian Finance 832<br/><br/>Business Organization, Corporate Ownership, and Governance 836<br/><br/>Corporate Governance 841<br/><br/>Capital Market Development 846<br/><br/>Capital Structure and the Cost of Capital 855<br/><br/>Performance, Value, and the Practice of Corporate Finance 857<br/><br/>Summary 860<br/><br/>Questions for Discussion 860<br/><br/>References 861<br/><br/>Chapter 27 Islamic Banking and Finance (extension of Part 3) 863<br/><br/>The Underlying Principles of Islamic Finance 864<br/><br/>The Evolution of Islamic Finance 868<br/><br/>Islamic Financing Products 872<br/><br/>Shariah-Compliant Asset Management 879<br/><br/>Islamic Banking 880<br/><br/>Islamic Finance and the Global Financial Meltdown 885<br/><br/>Summary 886<br/><br/>Questions for Discussion 888<br/><br/>References 888<br/><br/>Case Study 27.1: When Emirates Airline Taps Islamic Finance 888<br/><br/>Appendix 23A to Chapter 23: In Search of Alpha at Global Thematics Partners (GTP) 894<br/><br/>Glossary 899 
<br/><br/> DESCRIPTION<br/>As globalization is redefining the field of corporate finance, international finance is now part and parcel of the basic literacy of any financial executive. This is why International Corporate Finance is a “must” text for upper-undergraduates, MBAs aspiring to careers in global financial services and budding finance professionals.<br/><br/>International Corporate Finance offers thorough coverage of the international monetary system, international financing, foreign exchange risk management and cross-border valuation. Additionally, the book offers keen insight on how disintermediation, deregulation and securitization are re-shaping global capital markets.<br/><br/>What is different about International Corporate Finance?<br/><br/>Each chapter opens with a real-life mini-case to anchor theoretical concepts to managerial situations.<br/>Provides simple decision rules and “how to do” answers to key managerial issues.<br/>Cross-border Mergers & Acquisitions, Project Finance, Islamic Finance, Asian Banking & Finance are completely new chapters that no other textbooks currently cover.<br/>Accompanied with a comprehensive instructor support package which includes case studies, an Instructor’s Manual, PowerPoint slides, Multiple Choice Questions and more. 
<br/><br/><label>ISBN: </label>9781119550464 
<br/><br/><label>Subjects--Topical Terms: </label><br/>Risk management<br/>Foreign exchange futures<br/>International business enterprises--Finance<br/>Foreign exchange<br/>Corporations--Finance
<br/><br/><label>Dewey Class. No.: </label>332.042  / JAC