Instructor’s Resource Manual
fr fr
Multinational Business fr
Finance
Fifteenth Edition
fr
David K. Eiteman fr fr
University of California, Los Angeles
fr fr fr fr
Arthur I. Stonehill fr fr
Oregon State University and University of Hawaii at Manoa
fr fr fr fr fr fr fr fr
, Michael H. Moffett fr fr
Thunderbird School of Global Management
fr fr fr fr
at Arizona State University
fr fr fr fr
New frYork, frNY
This frwork fris frprotected frby frUnited frStates frcopyright frlaws frand fris frprovided frsolely
frfor frthe fruse frof frinstructors frin frteaching frtheir frcourses frand frassessing frstudent
frlearning. frDissemination fror frsale frof frany frpart frof frthis frwork fr(including fron frthe
frWorld frWide frWeb) frwill frdestroy frthe frintegrity frof frthe frwork frand fris frnot frpermitted.
f r The frwork frand
materials frfrom frit frshould frnever frbe frmade fravailable frto frstudents frexcept frby
instructors frusing frthe fraccompanying frtext frin frtheir frclasses. f r All frrecipients frof
frthis frwork frare frexpected frto frabide frby frthese frrestrictions frand frto frhonor frthe
frintended frpedagogical frpurposes frand frthe frneeds frof frother frinstructors frwho frrely
fron frthese frmaterials.
Vice frPresident, frBusiness, frEconomics, frand frUK frCourseware: frDonna frBattista
Senior frSponsoring frEditor: frNeeraj frBhalla
,Managing frProducer, frBusiness: frAlison fr Kalil
Content frProducer: frSugandh frJuneja
Project frManager: frDinesh frDeivendiran
Copyright fr© fr2019, fr2016, fr2013 frby frPearson frEducation, frInc. fror frits fraffiliates. frAll frRights frReserved.
Manufactured frin frthe frUnited frStates frof frAmerica. frThis frpublication fris frprotected frby frcopyright, frand
frpermission frshould frbe frobtained frfrom frthe frpublisher frprior frto frany frprohibited frreproduction, frstorage frin fra
frretrieval frsystem, fror frtransmission frin frany frform fror frby frany frmeans, frelectronic, frmechanical,
frphotocopying, frrecording, fror
otherwise. frFor frinformation frregarding frpermissions, frrequest frforms, frand frthe frappropriate frcontacts frwithin frthe
frPearson frEducation frGlobal frRights frand frPermissions frdepartment, frplease frvisit
www.pearsoned.com/permissions/.
Unless frotherwise frindicated frherein, frany frthird-party frtrademarks, frlogos, fror fricons frthat frmay frappear
frin frthis frwork frare frthe frproperty frof frtheir frrespective frowners, frand frany frreferences frto frthird-party
frtrademarks, frlogos, fricons, fror frother frtrade frdress frare frfor frdemonstrative fror frdescriptive frpurposes fronly.
frSuch frreferences frare frnot
intended frto frimply frany frsponsorship, frendorsement, frauthorization, fror frpromotion frof frPearson’s frproducts frby
frthe frowners frof frsuch frmarks, fror frany frrelationship frbetween frthe frowner frand frPearson frEducation, frInc., fror frits
fraffiliates, frauthors, frlicensees, fror frdistributors.
ISBN-13: f r 978-0-13-479657-4
ISBN-10: f r 0-13-479657-8
, Contents
Chapter fr1 frMultinational frFinancial frManagement: frOpportunities frand frChallenges ......................... 1
Chapter fr2 frThe frInternational frMonetary frSystem .............................................................................. 8
Chapter fr3 frThe frBalance frof frPayments ............................................................................................ 13
Chapter fr4 frFinancial frGoals frand frCorporate frGovernance ............................................................... 22
Chapter fr5 frThe frForeign frExchange frMarket .................................................................................... 28
Chapter fr6 frInternational frParity frConditions .................................................................................... 34
Chapter fr7 frForeign frCurrency frDerivatives: frFutures frand frOptions .................................................. 41
Chapter fr8 frInterest frRate frRisk frand frSwaps ..................................................................................... 46
Chapter fr9 frForeign frExchange frRate frDetermination frand frIntervention ........................................... 52
Chapter fr10 frTransaction frExposure ................................................................................................. 60
Chapter fr11 frTranslation frExposure................................................................................................... 66
Chapter fr12 frOperating frExposure .................................................................................................... 71
Chapter fr13 frGlobal frCost frand frAvailability frof frCapital .................................................................... 76
Chapter fr14 frFunding frthe frMultinational frFirm ................................................................................ 81
Chapter fr15 frMultinational frTax frManagement.................................................................................. 89
Chapter fr16 frInternational frTrade frFinance........................................................................................ 97
Chapter fr17 frForeign frDirect frInvestment frand frPolitical frRisk ........................................................ 101
Chapter fr18 frMultinational frCapital frBudgeting frand frCross-Border frAcquisitions .......................... 115
fr fr
Multinational Business fr
Finance
Fifteenth Edition
fr
David K. Eiteman fr fr
University of California, Los Angeles
fr fr fr fr
Arthur I. Stonehill fr fr
Oregon State University and University of Hawaii at Manoa
fr fr fr fr fr fr fr fr
, Michael H. Moffett fr fr
Thunderbird School of Global Management
fr fr fr fr
at Arizona State University
fr fr fr fr
New frYork, frNY
This frwork fris frprotected frby frUnited frStates frcopyright frlaws frand fris frprovided frsolely
frfor frthe fruse frof frinstructors frin frteaching frtheir frcourses frand frassessing frstudent
frlearning. frDissemination fror frsale frof frany frpart frof frthis frwork fr(including fron frthe
frWorld frWide frWeb) frwill frdestroy frthe frintegrity frof frthe frwork frand fris frnot frpermitted.
f r The frwork frand
materials frfrom frit frshould frnever frbe frmade fravailable frto frstudents frexcept frby
instructors frusing frthe fraccompanying frtext frin frtheir frclasses. f r All frrecipients frof
frthis frwork frare frexpected frto frabide frby frthese frrestrictions frand frto frhonor frthe
frintended frpedagogical frpurposes frand frthe frneeds frof frother frinstructors frwho frrely
fron frthese frmaterials.
Vice frPresident, frBusiness, frEconomics, frand frUK frCourseware: frDonna frBattista
Senior frSponsoring frEditor: frNeeraj frBhalla
,Managing frProducer, frBusiness: frAlison fr Kalil
Content frProducer: frSugandh frJuneja
Project frManager: frDinesh frDeivendiran
Copyright fr© fr2019, fr2016, fr2013 frby frPearson frEducation, frInc. fror frits fraffiliates. frAll frRights frReserved.
Manufactured frin frthe frUnited frStates frof frAmerica. frThis frpublication fris frprotected frby frcopyright, frand
frpermission frshould frbe frobtained frfrom frthe frpublisher frprior frto frany frprohibited frreproduction, frstorage frin fra
frretrieval frsystem, fror frtransmission frin frany frform fror frby frany frmeans, frelectronic, frmechanical,
frphotocopying, frrecording, fror
otherwise. frFor frinformation frregarding frpermissions, frrequest frforms, frand frthe frappropriate frcontacts frwithin frthe
frPearson frEducation frGlobal frRights frand frPermissions frdepartment, frplease frvisit
www.pearsoned.com/permissions/.
Unless frotherwise frindicated frherein, frany frthird-party frtrademarks, frlogos, fror fricons frthat frmay frappear
frin frthis frwork frare frthe frproperty frof frtheir frrespective frowners, frand frany frreferences frto frthird-party
frtrademarks, frlogos, fricons, fror frother frtrade frdress frare frfor frdemonstrative fror frdescriptive frpurposes fronly.
frSuch frreferences frare frnot
intended frto frimply frany frsponsorship, frendorsement, frauthorization, fror frpromotion frof frPearson’s frproducts frby
frthe frowners frof frsuch frmarks, fror frany frrelationship frbetween frthe frowner frand frPearson frEducation, frInc., fror frits
fraffiliates, frauthors, frlicensees, fror frdistributors.
ISBN-13: f r 978-0-13-479657-4
ISBN-10: f r 0-13-479657-8
, Contents
Chapter fr1 frMultinational frFinancial frManagement: frOpportunities frand frChallenges ......................... 1
Chapter fr2 frThe frInternational frMonetary frSystem .............................................................................. 8
Chapter fr3 frThe frBalance frof frPayments ............................................................................................ 13
Chapter fr4 frFinancial frGoals frand frCorporate frGovernance ............................................................... 22
Chapter fr5 frThe frForeign frExchange frMarket .................................................................................... 28
Chapter fr6 frInternational frParity frConditions .................................................................................... 34
Chapter fr7 frForeign frCurrency frDerivatives: frFutures frand frOptions .................................................. 41
Chapter fr8 frInterest frRate frRisk frand frSwaps ..................................................................................... 46
Chapter fr9 frForeign frExchange frRate frDetermination frand frIntervention ........................................... 52
Chapter fr10 frTransaction frExposure ................................................................................................. 60
Chapter fr11 frTranslation frExposure................................................................................................... 66
Chapter fr12 frOperating frExposure .................................................................................................... 71
Chapter fr13 frGlobal frCost frand frAvailability frof frCapital .................................................................... 76
Chapter fr14 frFunding frthe frMultinational frFirm ................................................................................ 81
Chapter fr15 frMultinational frTax frManagement.................................................................................. 89
Chapter fr16 frInternational frTrade frFinance........................................................................................ 97
Chapter fr17 frForeign frDirect frInvestment frand frPolitical frRisk ........................................................ 101
Chapter fr18 frMultinational frCapital frBudgeting frand frCross-Border frAcquisitions .......................... 115
