Solution manual
International financial management 10th edition
by Cheol Eun and Bruce Resnick Chapters 1-21 Covered
, TABLE OF CONTENT
S S
PARTSONE:FoundationsSofSInternationalSFinancialSManagement
ChapterS1:GlobalizationSandStheSMultinationalSFirm
ChapterS2:InternationalSMonetarySSystem
ChapterS3:BalanceSofSPayments
ChapterS4:CorporateSGovernanceSAroundStheSWorld
S
PARTSTWO:TheSForeignSExchangeSMarket,SExchangeSRateSDetermination,SandSCurrencyDerivatives
ChapterS5:TheSMarketSforSForeignSExchange
ChapterS6:InternationalSParitySRelationshipsSandSForecastingSForeignSExchangeSRates
ChapterS7:FuturesSandSOptionsSonSForeignSExchange
S
PARTSTHREE:ForeignSExchangeSExposureSandSManagement
ChapterS8:ManagementSofSTransactionSExposure
ChapterS9:ManagementSofSEconomicSExposure
ChapterS10:ManagementSofSTranslationSExposure
S
PARTSFOUR:WorldSFinancialSMarketsSandSInstitutions
ChapterS11:InternationalSBankingSandSMoneySMarket
ChapterS12:InternationalSBondSMarket
ChapterS13:InternationalSEquitySMarkets
ChapterS14:InterestSRateSandSCurrencySSwaps
ChapterS15:InternationalSPortfolioSInvestment
,S
PARTSFIVE:FinancialSManagementSofStheSMultinationalSFirm
ChapterS16:ForeignSDirectSInvestmentSandSCross-BorderSAcquisitions
ChapterS17:InternationalSCapitalSStructureSandStheSCostSofSCapital
ChapterS18:InternationalSCapitalSBudgeting
ChapterS19:MultinationalSCashSManagement
ChapterS20:InternationalSTradeSFinance
ChapterS21:SInternationalSTaxSEnvironmentSandSTransferSPricing
, International Financial Management, 10th Edition EUN Chapter 1-21
S S S S S S S
CHAPTER 1 S
GLOBALIZATIONSANDSTHESMULTINATIONALSFIRM
ANSWERSS&SSOLUTIONSSTOSEND-OF-CHAPTERSQUESTIONSSANDSPROBLEMS
QUESTIONS
1. WhySisSitSimportantStoSstudySinternationalSfinancialSmanagement?
Answer:S WeSareSnowSlivingSinSaSworldSwhereSallStheSmajorSeconomicSfunctions,SsuchSasSconsumption,Spr
oduction,Sinvestment,SandSfinancing,SareShighlySglobalized.S ItSisSthusSessentialS forSfinancialSmanagersStoSf
ullySunderstandSvitalSinternationalSdimensionsSofSfinancialSmanagement.S ThisSglobalSshiftSisSinSmarkedSco
ntrastStoSaSsituationSthatSexistedSwhenStheSauthorsSofSthisSbookSwereSlearningSfinanceSaSfewSdecadesSago.
S AtSthatStime,SmostSprofessorsScustomarilyS(andSsafely,StoSsomeSextent)SignoredSinternationalSaspectsSofS
finance.S ThisSmodeSofSoperationShasSbecomeSuntenableSsinceSthen.
2. HowSisSinternationalSfinancialSmanagementSdifferentSfromSdomesticSfinancialSmanagement?
Answer:S ThereSareSthreeSmajorSdimensionsSthatSsetSapartSinternationalSfinanceSfromSdomesticSfinance.ST
heySare:
1. foreignSexchangeSandSpoliticalSrisks,
2. marketSimperfections,Sand
3. expandedSopportunitySset.
3. DiscussStheSmajorStrendsSthatShaveSprevailedSinSinternationalSbusinessSduringStheSlastStwoSdecad
es.
Answer:S TheS2000sSbroughtSaSrapidSintegrationSofSinternationalScapitalSandSfinancialSmarkets.SImpetusSf
orSglobalizedSfinancialSmarketsSinitiallyScameSfromStheSgovernmentsSofSmajorScountriesSthatShadSbegunSt
oSderegulateStheirSforeignSexchangeSandScapitalSmarkets.S TheSeconomic
International financial management 10th edition
by Cheol Eun and Bruce Resnick Chapters 1-21 Covered
, TABLE OF CONTENT
S S
PARTSONE:FoundationsSofSInternationalSFinancialSManagement
ChapterS1:GlobalizationSandStheSMultinationalSFirm
ChapterS2:InternationalSMonetarySSystem
ChapterS3:BalanceSofSPayments
ChapterS4:CorporateSGovernanceSAroundStheSWorld
S
PARTSTWO:TheSForeignSExchangeSMarket,SExchangeSRateSDetermination,SandSCurrencyDerivatives
ChapterS5:TheSMarketSforSForeignSExchange
ChapterS6:InternationalSParitySRelationshipsSandSForecastingSForeignSExchangeSRates
ChapterS7:FuturesSandSOptionsSonSForeignSExchange
S
PARTSTHREE:ForeignSExchangeSExposureSandSManagement
ChapterS8:ManagementSofSTransactionSExposure
ChapterS9:ManagementSofSEconomicSExposure
ChapterS10:ManagementSofSTranslationSExposure
S
PARTSFOUR:WorldSFinancialSMarketsSandSInstitutions
ChapterS11:InternationalSBankingSandSMoneySMarket
ChapterS12:InternationalSBondSMarket
ChapterS13:InternationalSEquitySMarkets
ChapterS14:InterestSRateSandSCurrencySSwaps
ChapterS15:InternationalSPortfolioSInvestment
,S
PARTSFIVE:FinancialSManagementSofStheSMultinationalSFirm
ChapterS16:ForeignSDirectSInvestmentSandSCross-BorderSAcquisitions
ChapterS17:InternationalSCapitalSStructureSandStheSCostSofSCapital
ChapterS18:InternationalSCapitalSBudgeting
ChapterS19:MultinationalSCashSManagement
ChapterS20:InternationalSTradeSFinance
ChapterS21:SInternationalSTaxSEnvironmentSandSTransferSPricing
, International Financial Management, 10th Edition EUN Chapter 1-21
S S S S S S S
CHAPTER 1 S
GLOBALIZATIONSANDSTHESMULTINATIONALSFIRM
ANSWERSS&SSOLUTIONSSTOSEND-OF-CHAPTERSQUESTIONSSANDSPROBLEMS
QUESTIONS
1. WhySisSitSimportantStoSstudySinternationalSfinancialSmanagement?
Answer:S WeSareSnowSlivingSinSaSworldSwhereSallStheSmajorSeconomicSfunctions,SsuchSasSconsumption,Spr
oduction,Sinvestment,SandSfinancing,SareShighlySglobalized.S ItSisSthusSessentialS forSfinancialSmanagersStoSf
ullySunderstandSvitalSinternationalSdimensionsSofSfinancialSmanagement.S ThisSglobalSshiftSisSinSmarkedSco
ntrastStoSaSsituationSthatSexistedSwhenStheSauthorsSofSthisSbookSwereSlearningSfinanceSaSfewSdecadesSago.
S AtSthatStime,SmostSprofessorsScustomarilyS(andSsafely,StoSsomeSextent)SignoredSinternationalSaspectsSofS
finance.S ThisSmodeSofSoperationShasSbecomeSuntenableSsinceSthen.
2. HowSisSinternationalSfinancialSmanagementSdifferentSfromSdomesticSfinancialSmanagement?
Answer:S ThereSareSthreeSmajorSdimensionsSthatSsetSapartSinternationalSfinanceSfromSdomesticSfinance.ST
heySare:
1. foreignSexchangeSandSpoliticalSrisks,
2. marketSimperfections,Sand
3. expandedSopportunitySset.
3. DiscussStheSmajorStrendsSthatShaveSprevailedSinSinternationalSbusinessSduringStheSlastStwoSdecad
es.
Answer:S TheS2000sSbroughtSaSrapidSintegrationSofSinternationalScapitalSandSfinancialSmarkets.SImpetusSf
orSglobalizedSfinancialSmarketsSinitiallyScameSfromStheSgovernmentsSofSmajorScountriesSthatShadSbegunSt
oSderegulateStheirSforeignSexchangeSandScapitalSmarkets.S TheSeconomic
