Solution Manual for International Financial Management, 9th Edition By Cheol Eun, Bruce G. Resnick, Verified Chapters 1 - 21, Complete Newest Version

SOLUTIONMANUAL b




International Financial Management,
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9thEditionByCheolEun,BruceG.Resnick,
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AllChapter1-21
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,TABLE OF CONTENTS b b b




PART ONE: Foundations of International Financial Management
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Chapter 1: Globalization and the Multinational Firm
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Chapter2:InternationalMonetarySystem
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Chapter 3: Balance of Payments
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Chapter 4: Corporate Governance Around the World
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PART TWO: The Foreign Exchange Market, Exchange Rate Determination, and Currency
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Derivatives
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Chapter 5: The Market for Foreign Exchange
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Chapter 6: International ParityRelationships and ForecastingForeign Exchange
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Rates
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,Chapter7:FuturesandOptionsonForeignExchange
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PARTTHREE:ForeignExchangeExposureandManagement
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Chapter 8: Management of Transaction Exposure
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b Chapter 9: Management of Economic Exposure
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b Chapter10:ManagementofTranslationExposure
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PART FOUR: World Financial Markets and Institutions Chapter
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11:InternationalBankingandMoneyMarketChapter12:
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InternationalBondMarket
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Chapter13:InternationalEquityMarketsChapter
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14:InterestRateandCurrencySwaps Chapter 15:
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International Portfolio Investment
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PARTFIVE:FinancialManagementoftheMultinationalFirm Chapter 16:
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b Foreign Direct Investment and Cross-Border Acquisitions Chapter17:
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InternationalCapitalStructureandtheCostofCapitalChapter18:
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InternationalCapitalBudgeting
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Chapter 19:Multinational CashManagement Chapter
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20:InternationalTradeFinance
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Chapter21:InternationalTaxEnvironmentandTransferPricing
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, CHAPTER 1 b




GLOBALIZATION AND THE MULTINATIONAL FIRM b b b b




ANSWERS & SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS
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QUESTIONS

1. Why isitimportant to study internationalfinancialmanagement?
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Answer: We are now living in a world where all the major economic functions, such as consumption,
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production, investment, and financing, are highly globalized. It is thus essential for financial managers to fully
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understandvitalinternationaldimensionsoffinancial management.Thisglobalshiftisinmarked contrast to a
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situation that existed when the authors of this book were learning finance a few decades ago. At that time, most
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professors customarily (and safely, to some extent) ignored international aspects of finance. This mode of
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b operation has become untenable since then.
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2. Howis international financial management different from domestic financial management?
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Answer: There are threemajordimensions that set apartinternationalfinance from domestic finance. They
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b are:
1. foreign exchange and political risks, b b b b




2. market imperfections, and b b




3. expanded opportunity set. b b




3. Discussthemajortrendsthathaveprevailedin internationalbusinessduringthe lasttwo decades.
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Answer: The2000sbroughtarapidintegrationofinternationalcapitalandfinancialmarkets. Impetusfor
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globalizedfinancialmarketsinitially came from thegovernments of major countries thathad begun to
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deregulatetheirforeignexchangeandcapitalmarkets. Theeconomic
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