IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only have distinct
,IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law,
and mathematics. These disciplines not only have distinct International
Financial
Management
14th Edition
Jeff Madura
Florida Atlantic University
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, Australia • Brazil • Mexico • Singapore • United Kingdom • United States
This is an electronic version of the print textbook. Due to electronic rights restrictions,
some third party content may be suppressed. Editorial review has deemed that any suppressed
content does not materially affect the overall learning experience. The publisher reserves the right
to remove content from this title at any time if subsequent rights restrictions require it. For
valuable information on pricing, previous editions, changes to current editions, and alternate
formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for
materials in your areas of interest.
Important Notice: Media content referenced within the product description or the product
text may not be available in the eBook version.
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as
business, law, and mathematics. These disciplines not only have distinct
International Financial Management, © 2021, 2018 Cengage Learning, Inc.
Fourteenth Edition WCN: 02-300
Jeff Madura ALL RIGHTS RESERVED. No part of this work covered by the copyright
herein may be reproduced or distributed in any form or by any means,
except as permitted by U.S. copyright law, without the prior written
Sr. VP, Higher Ed Product, Content, and
permission of the copyright owner.
Market Development: Erin Joyner
VP, Product Management: Mike Schenk
For product information and technology assistance, contact us at
Product Director: Jason Fremder Cengage Learning Customer & Sales Support, 1-800-354-9706
Sr. Product Manager: Aaron Arnsparger For permission to use material from this text or product,
submit all requests online at www.cengage.com/permissions
Content Manager: Christopher Valentine Further permissions questions can be emailed to
Learning Designer: Brandon Foltz
Marketing Manager: Christopher Walz
Library of Congress Control Number: 2019913258
Product Assistant: Margaret Russo
ISBN: 978-0-357-13054-4
Digital Delivery Lead: Mark Hopkinson
Manufacturing Planner: Kevin Kluck
Cengage
Marketing Coordinator: Sean Messer 200 Pier 4 Boulevard
Boston, MA 02210
Production Service/Composition: SPi Global USA
Art Director: Chris Doughman
Cengage is a leading provider of customized learning solutions with
Cover Designer: Chris Doughman employees residing in nearly 40 different countries and sales in more
than 125 countries around the world. Find your local representative at
Cover Image: iStockPhoto.com/yongyuan www.cengage.com.
Intellectual Property Analyst: Cengage products are represented in Canada
Ashley Maynard by Nelson Education, Ltd.
Intellectual Property Project Manager:
To learn more about Cengage Learning Solutions, visit
Carly Belcher
www.cengage.com
Purchase any of our products at your local college store or at our
preferred online store www.cengage.com.
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, Printed in United State of America
Print Number: 01 Print Year: 2020
Contents
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only have distinct
PART 1: The International Financial Environment 1
1 Multinational Financial Management: An Overview 3
2 International Flow of Funds 31
3 International Financial Markets 61
4 Exchange Rate Determination 101
5 Currency Derivatives 131
PART 2: Exchange Rate Behavior 185
6 Government Influence on Exchange Rates 187
7 International Arbitrage and Interest Rate Parity 227
8 Relationships among Inflation, Interest Rates, and Exchange Rates 259
PART 3: Exchange Rate Risk Management 297
9 Forecasting Exchange Rates 299
10 Measuring Exposure to Exchange Rate Fluctuations 325
11 Managing Transaction Exposure 355
12 Managing Economic Exposure and Translation Exposure 393
PART 4: Long-Term Asset and Liability Management 413
13 Direct Foreign Investment 415
14 Multinational Capital Budgeting 435
15 International Corporate Governance and Control 475
16 Country Risk Analysis 501
17 Multinational Capital Structure and Cost of Capital 525
18 Long-Term Debt Financing 551
PART 5: Short-Term Asset and Liability Management 575
19 Financing International Trade 577
20 Short-Term Financing 595
21 International Cash Management 611
Appendix A: Answers to Self-Test Questions 643
Appendix B: Supplemental Cases 656
Appendix C: Using Excel to Conduct Analysis 676
Appendix D: International Investing Project 684
Appendix E: Discussion in the Boardroom 687
Appendix F: Use of Bitcoin to Conduct International Transactions 695
Glossary 698
Index 705
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
,IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law,
and mathematics. These disciplines not only have distinct International
Financial
Management
14th Edition
Jeff Madura
Florida Atlantic University
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, Australia • Brazil • Mexico • Singapore • United Kingdom • United States
This is an electronic version of the print textbook. Due to electronic rights restrictions,
some third party content may be suppressed. Editorial review has deemed that any suppressed
content does not materially affect the overall learning experience. The publisher reserves the right
to remove content from this title at any time if subsequent rights restrictions require it. For
valuable information on pricing, previous editions, changes to current editions, and alternate
formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for
materials in your areas of interest.
Important Notice: Media content referenced within the product description or the product
text may not be available in the eBook version.
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as
business, law, and mathematics. These disciplines not only have distinct
International Financial Management, © 2021, 2018 Cengage Learning, Inc.
Fourteenth Edition WCN: 02-300
Jeff Madura ALL RIGHTS RESERVED. No part of this work covered by the copyright
herein may be reproduced or distributed in any form or by any means,
except as permitted by U.S. copyright law, without the prior written
Sr. VP, Higher Ed Product, Content, and
permission of the copyright owner.
Market Development: Erin Joyner
VP, Product Management: Mike Schenk
For product information and technology assistance, contact us at
Product Director: Jason Fremder Cengage Learning Customer & Sales Support, 1-800-354-9706
Sr. Product Manager: Aaron Arnsparger For permission to use material from this text or product,
submit all requests online at www.cengage.com/permissions
Content Manager: Christopher Valentine Further permissions questions can be emailed to
Learning Designer: Brandon Foltz
Marketing Manager: Christopher Walz
Library of Congress Control Number: 2019913258
Product Assistant: Margaret Russo
ISBN: 978-0-357-13054-4
Digital Delivery Lead: Mark Hopkinson
Manufacturing Planner: Kevin Kluck
Cengage
Marketing Coordinator: Sean Messer 200 Pier 4 Boulevard
Boston, MA 02210
Production Service/Composition: SPi Global USA
Art Director: Chris Doughman
Cengage is a leading provider of customized learning solutions with
Cover Designer: Chris Doughman employees residing in nearly 40 different countries and sales in more
than 125 countries around the world. Find your local representative at
Cover Image: iStockPhoto.com/yongyuan www.cengage.com.
Intellectual Property Analyst: Cengage products are represented in Canada
Ashley Maynard by Nelson Education, Ltd.
Intellectual Property Project Manager:
To learn more about Cengage Learning Solutions, visit
Carly Belcher
www.cengage.com
Purchase any of our products at your local college store or at our
preferred online store www.cengage.com.
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
, Printed in United State of America
Print Number: 01 Print Year: 2020
Contents
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not only have distinct
PART 1: The International Financial Environment 1
1 Multinational Financial Management: An Overview 3
2 International Flow of Funds 31
3 International Financial Markets 61
4 Exchange Rate Determination 101
5 Currency Derivatives 131
PART 2: Exchange Rate Behavior 185
6 Government Influence on Exchange Rates 187
7 International Arbitrage and Interest Rate Parity 227
8 Relationships among Inflation, Interest Rates, and Exchange Rates 259
PART 3: Exchange Rate Risk Management 297
9 Forecasting Exchange Rates 299
10 Measuring Exposure to Exchange Rate Fluctuations 325
11 Managing Transaction Exposure 355
12 Managing Economic Exposure and Translation Exposure 393
PART 4: Long-Term Asset and Liability Management 413
13 Direct Foreign Investment 415
14 Multinational Capital Budgeting 435
15 International Corporate Governance and Control 475
16 Country Risk Analysis 501
17 Multinational Capital Structure and Cost of Capital 525
18 Long-Term Debt Financing 551
PART 5: Short-Term Asset and Liability Management 575
19 Financing International Trade 577
20 Short-Term Financing 595
21 International Cash Management 611
Appendix A: Answers to Self-Test Questions 643
Appendix B: Supplemental Cases 656
Appendix C: Using Excel to Conduct Analysis 676
Appendix D: International Investing Project 684
Appendix E: Discussion in the Boardroom 687
Appendix F: Use of Bitcoin to Conduct International Transactions 695
Glossary 698
Index 705
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
