∗ Integrates economic and political factors underlying exchange rate determination.


∗ Uses the balance-of-payments framework to assess economic links among nations.


∗ Presents a comprehensive discussion of the foreign exchange market.


∗ Discusses the key parity conditions in international finance that relate interest rates, exchange rates, and inflation rates, and the underlying arbitrage considerations that determine them-along with numerous real-world applications.


∗ Presents distinctions between real and nominal exchange rates and between accounting and economic exposure and their significance for exchange risk management.


∗ Provides a comprehensive discussion of the mechanisms multinational firms use to manage interaffiliate fund flows on a global basis.


∗ Presents the underpinnings of financial markets and the implications for international capital flows.


∗ Presents specialized financing and risk management techniques.


∗ Discusses the assessment of the cost of capital for foreign investments.


∗ Discusses the nature and consequences of international portfolio investment, including emerging market investments.


∗ Presents the development of global strategies of multinational corporations.


∗ Provides the means for analyzing foreign investments.


∗ Covers political risk measurement and management.


∗ Includes a number of distinctive pedagogical features including real-world examples, vignettes, illustrations, and hundreds of realistic end-of-chapter questions and problems.