Instructor’s Resource Manual
g g
Multinational Business g
Finance
Fifteenth Edition
g
David K. Eiteman
g g
University of California, Los Angeles
g g g g
Arthur I. Stonehill
g g
Oregon State University and University of Hawaii at Manoa
g g g g g g g g
, Michael H. Moffett g g
Thunderbird School of Global Management a
g g g g g
t Arizona State University
g g g
NewgYork,gNY
ThisgworkgisgprotectedgbygUnitedgStatesgcopyrightglawsgandgisgprovidedgsolelygf
orgthegusegofginstructorsgingteachinggtheirgcoursesgandgassessinggstudentglearni
ng.gDisseminationgorgsalegofganygpartgofgthisgworkg(includinggongthegWorldgWideg
Web)gwillgdestroygthegintegritygofgthegworkgandgisgnotgpermitted.g Thegworkgand
materialsgfromgitgshouldgnevergbegmadegavailablegtogstudentsgexceptgby
instructorsgusinggthegaccompanyinggtextgingtheirgclasses.g Allgrecipientsgofgthisg
workgaregexpectedgtogabidegbygthesegrestrictionsgandgtoghonorgthegintendedgped
agogicalgpurposesgandgthegneedsgofgotherginstructorsgwhogrelygongthesegmateria
ls.
VicegPresident,gBusiness,gEconomics,gandgUKgCourseware:gDonnagBattista
SeniorgSponsoringgEditor:gNeerajgBhalla
,ManaginggProducer,gBusiness:gAlisongKalil
ContentgProducer:gSugandhgJuneja
ProjectgManager:gDineshgDeivendiran
Copyrightg©g2019,g2016,g2013gbygPearsongEducation,gInc.gorgitsgaffiliates.gAllgRightsgReserved.
ManufacturedgingthegUnitedgStatesgofgAmerica.gThisgpublicationgisgprotectedgbygcopyright,gandgpermissi
ongshouldgbegobtainedgfromgthegpublishergpriorgtoganygprohibitedgreproduction,gstoragegingagretrievalgsy
stem,gorgtransmissionginganygformgorgbyganygmeans,gelectronic,gmechanical,gphotocopying,grecording,go
r
otherwise.gForginformationgregardinggpermissions,grequestgforms,gandgthegappropriategcontactsgwithingthegPe
arsongEducationgGlobalgRightsgandgPermissionsgdepartment,gpleasegvisit
www.pearsoned.com/permissions/.
Unlessgotherwisegindicatedgherein,ganygthird-
partygtrademarks,glogos,gorgiconsgthatgmaygappeargingthisgworkgaregthegpropertygofgtheirgrespectiveg
owners,gandganygreferencesgtogthird-
partygtrademarks,glogos,gicons,gorgothergtradegdressgaregforgdemonstrativegorgdescriptivegpurposesgon
ly.gSuchgreferencesgaregnot
intendedgtogimplyganygsponsorship,gendorsement,gauthorization,gorgpromotiongofgPearson’sgproductsgbygt
hegownersgofgsuchgmarks,gorganygrelationshipgbetweengthegownergandgPearsongEducation,gInc.,gorgitsgaffi
liates,gauthors,glicensees,gorgdistributors.
ISBN-13:g 978-0-13-479657-4
ISBN-10:g 0-13-479657-8
, Contents
Chapterg1gMultinationalgFinancialgManagement:gOpportunitiesgandgChallenges ........................... 1
Chapterg2gThegInternationalgMonetarygSystem ............................................................................... 8
Chapterg3gThegBalancegofgPayments ............................................................................................. 13
Chapterg4gFinancialgGoalsgandgCorporategGovernance ................................................................. 22
Chapterg5gThegForeigngExchangegMarket ..................................................................................... 28
Chapterg6gInternationalgParitygConditions ..................................................................................... 34
Chapterg7gForeigngCurrencygDerivatives:gFuturesgandgOptions .................................................... 41
Chapterg8gInterestgRategRiskgandgSwaps ....................................................................................... 46
Chapterg9gForeigngExchangegRategDeterminationgandgIntervention ............................................. 52
Chapterg10gTransactiongExposure .................................................................................................. 60
Chapterg11gTranslationgExposure ................................................................................................... 66
Chapterg12gOperatinggExposure..................................................................................................... 71
Chapterg13gGlobalgCostgandgAvailabilitygofgCapital...................................................................... 76
Chapterg14gFundinggthegMultinationalgFirm.................................................................................. 81
Chapterg15gMultinationalgTaxgManagement .................................................................................. 89
Chapterg16gInternationalgTradegFinance ........................................................................................ 97
Chapterg17gForeigngDirectgInvestmentgandgPoliticalgRisk .......................................................... 101
Chapterg18gMultinationalgCapitalgBudgetinggandgCross-BordergAcquisitions ............................ 115
g g
Multinational Business g
Finance
Fifteenth Edition
g
David K. Eiteman
g g
University of California, Los Angeles
g g g g
Arthur I. Stonehill
g g
Oregon State University and University of Hawaii at Manoa
g g g g g g g g
, Michael H. Moffett g g
Thunderbird School of Global Management a
g g g g g
t Arizona State University
g g g
NewgYork,gNY
ThisgworkgisgprotectedgbygUnitedgStatesgcopyrightglawsgandgisgprovidedgsolelygf
orgthegusegofginstructorsgingteachinggtheirgcoursesgandgassessinggstudentglearni
ng.gDisseminationgorgsalegofganygpartgofgthisgworkg(includinggongthegWorldgWideg
Web)gwillgdestroygthegintegritygofgthegworkgandgisgnotgpermitted.g Thegworkgand
materialsgfromgitgshouldgnevergbegmadegavailablegtogstudentsgexceptgby
instructorsgusinggthegaccompanyinggtextgingtheirgclasses.g Allgrecipientsgofgthisg
workgaregexpectedgtogabidegbygthesegrestrictionsgandgtoghonorgthegintendedgped
agogicalgpurposesgandgthegneedsgofgotherginstructorsgwhogrelygongthesegmateria
ls.
VicegPresident,gBusiness,gEconomics,gandgUKgCourseware:gDonnagBattista
SeniorgSponsoringgEditor:gNeerajgBhalla
,ManaginggProducer,gBusiness:gAlisongKalil
ContentgProducer:gSugandhgJuneja
ProjectgManager:gDineshgDeivendiran
Copyrightg©g2019,g2016,g2013gbygPearsongEducation,gInc.gorgitsgaffiliates.gAllgRightsgReserved.
ManufacturedgingthegUnitedgStatesgofgAmerica.gThisgpublicationgisgprotectedgbygcopyright,gandgpermissi
ongshouldgbegobtainedgfromgthegpublishergpriorgtoganygprohibitedgreproduction,gstoragegingagretrievalgsy
stem,gorgtransmissionginganygformgorgbyganygmeans,gelectronic,gmechanical,gphotocopying,grecording,go
r
otherwise.gForginformationgregardinggpermissions,grequestgforms,gandgthegappropriategcontactsgwithingthegPe
arsongEducationgGlobalgRightsgandgPermissionsgdepartment,gpleasegvisit
www.pearsoned.com/permissions/.
Unlessgotherwisegindicatedgherein,ganygthird-
partygtrademarks,glogos,gorgiconsgthatgmaygappeargingthisgworkgaregthegpropertygofgtheirgrespectiveg
owners,gandganygreferencesgtogthird-
partygtrademarks,glogos,gicons,gorgothergtradegdressgaregforgdemonstrativegorgdescriptivegpurposesgon
ly.gSuchgreferencesgaregnot
intendedgtogimplyganygsponsorship,gendorsement,gauthorization,gorgpromotiongofgPearson’sgproductsgbygt
hegownersgofgsuchgmarks,gorganygrelationshipgbetweengthegownergandgPearsongEducation,gInc.,gorgitsgaffi
liates,gauthors,glicensees,gorgdistributors.
ISBN-13:g 978-0-13-479657-4
ISBN-10:g 0-13-479657-8
, Contents
Chapterg1gMultinationalgFinancialgManagement:gOpportunitiesgandgChallenges ........................... 1
Chapterg2gThegInternationalgMonetarygSystem ............................................................................... 8
Chapterg3gThegBalancegofgPayments ............................................................................................. 13
Chapterg4gFinancialgGoalsgandgCorporategGovernance ................................................................. 22
Chapterg5gThegForeigngExchangegMarket ..................................................................................... 28
Chapterg6gInternationalgParitygConditions ..................................................................................... 34
Chapterg7gForeigngCurrencygDerivatives:gFuturesgandgOptions .................................................... 41
Chapterg8gInterestgRategRiskgandgSwaps ....................................................................................... 46
Chapterg9gForeigngExchangegRategDeterminationgandgIntervention ............................................. 52
Chapterg10gTransactiongExposure .................................................................................................. 60
Chapterg11gTranslationgExposure ................................................................................................... 66
Chapterg12gOperatinggExposure..................................................................................................... 71
Chapterg13gGlobalgCostgandgAvailabilitygofgCapital...................................................................... 76
Chapterg14gFundinggthegMultinationalgFirm.................................................................................. 81
Chapterg15gMultinationalgTaxgManagement .................................................................................. 89
Chapterg16gInternationalgTradegFinance ........................................................................................ 97
Chapterg17gForeigngDirectgInvestmentgandgPoliticalgRisk .......................................................... 101
Chapterg18gMultinationalgCapitalgBudgetinggandgCross-BordergAcquisitions ............................ 115
