Multinational Business Finance, 15th edition

Published by Pearson (August 15, 2018) © 2019

  • David K. Eiteman Retired; UCLA Anderson
  • Arthur I. Stonehill University of Hawaii at Manoa
  • Michael H. Moffett Thunderbird School of Global Management at Arizona State University

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For international finance courses.

Authoritative, comprehensive coverage of contemporary international finance

Multinational Business Finance trains the leaders of tomorrow's multinational enterprises to recognize and capitalize on the unique characteristics of global markets. As such, the authors have embedded real-world mini-cases throughout, applying the chapter concepts to the types of situations managers of real multinational firms encounter.

The 15th Edition attempts to capture the rapid evolution of our global marketplace. It takes a closer look at the types of organizations that permeate the arena, and the competition, opportunities and challenges global businesses face today.

Hallmark features of this title

An emphasis on critical-thinking

  • Global Finance in Practice boxes highlight how real firms and managers deal with the complexity of executing global business deals in a changing marketplace.
  • 250 End-of-Chapter Problems assess students' understanding.

Proven pedagogical tools

  • The Impossible Trinity is used as a unifying theoretical link across multiple subjects and chapters.
  • A running case on a hypothetical US-based firm provides a cohesive framework for the multifaceted globalization process.
  • A student-friendly writing style, structured presentation of material, and delivery of critical elements in a shorter framework aid student learning.
  • Illustrations and exhibits provide a visual parallel to the concepts and content presented.

New and updated features of this title

An emphasis on critical-thinking

  • 7 NEW: Mini-Cases explore many of the edgier debates rising between global business, social policy and corporate social responsibility.

An intro of new concepts and components in global business today

  • EXPANDED: Translation Exposure, a cross-section of international finance, economics and accounting, now more effectively covers its wider theoretical and practical applications in industry.
  • NEW: Material examines how the changing structure of the global foreign exchange market is posing challenges for private players and public regulators.
  • EXPANDED: Discussion of subsidiary foreign funding sources and practices includes recent developments and changing access to capital.
  • NEW: The seismic changes introduced by the US effective on Jan. 1, 2018, have been highlighted in exploration of how taxation alters the fundamental financial management activities of global companies.
  • REVISED: The chapter on foreign direct investment and political risk now reflects the growing use of restrictions on convertibility, transferability, and the possibility of repudiation or expropriation.

Features of MyLab Finance for the 15th Edition

  • A powerful homework and test manager lets you create, import and manage online homework assignments, quizzes and tests that are automatically graded.
  • Easily scalable and shareable content. MyLab enables you to manage multiple class sections, and lets other instructors copy your settings so a standardized syllabus can be maintained across your department.
  • Learning aids, such as Help Me Solve This, provide extra help for students at the point-of-use.
  • The Study Plan gives students personalized recommendations, practice opportunities and learning aids to help them stay on track.
  • Filled with a wealth of content that is tightly integrated with your textbook, MyLab lets you easily add, remove or modify existing instructional material to suit the needs of your students or department.

PART I: GLOBAL FINANCIAL ENVIRONMENT

  1. Multinational Fin Mgmt: Challenges & Opportunities
  2. The International Monetary System
  3. The Balance of Payments
  4. Financial Goals and Corporate Governance

PART II: FOREIGN EXCHANGE THEORY & MARKETS

  1. The Foreign Exchange Market
  2. International Parity Conditions
    • Appendix: An Algebraic Primer to Parity Conditions
  3. Foreign Currency Futures & Options
    • Appendix: Foreign Currency Options Pricing Theory
  4. Interest Rate Derivatives & Swaps
  5. Exchange Rate Determination & Forecasting

PART III: FOREIGN EXCHANGE EXPOSURE

  1. Transaction Exposure
    • Appendix: Complex Option Hedges
  2. Translation Exposure Electrolux of Sweden Currency Management New #2
  3. Operating Exposure Rolls Royce & Brexit New #2

PART IV: FINANCING THE GLOBAL FIRM

  1. The Global Cost and Availability of Capital
  2. Raising Equity and Debt Globally
  3. Multinational Tax Management
  4. International Trade Finance

PART V: FOREIGN INVESTMENTS & OPERATIONS

  1. Foreign Direct Investment & Political Risk
  2. Multinational Capital Budgeting & Cross-Border Acquisitions

Answers to selected end-of-chapter problems

About our authors

David K. Eiteman is Professor Emeritus of Finance at the John E. Anderson Graduate School of Management at UCLA. He has also held teaching or research appointments at the Hong Kong University of Science & Technology, Showa Academy of Music (Japan), the National University of Singapore, Dalian University (China), the Helsinki School of Economics and Business Administration (Finland), University of Hawaii at Manoa, University of Bradford (UK), Cranfield School of Management (UK), and IDEA (Argentina). He is a former president of the International Trade and Finance Association, Society for Economics and Management in China, and Western Finance Association.

Professor Eiteman received a BBA (Business Administration) from the University of Michigan, Ann Arbor (1952); MA (Economics) from the University of California, Berkeley (1956); and a PhD (Finance) from Northwestern University (1959).

He has authored or co-authored 4 books and 29 other publications. His articles have appeared in The Journal of Finance, The International Trade Journal, Financial Analysts Journal, Journal of World Business, Management International, Business Horizons, MSU Business Topics, Public Utilities Fortnightly, and others.

Arthur I. Stonehill was a Professor of Finance and International Business, Emeritus, at Oregon State University, where he taught for 24 years (1966 to 1990). During 1991 to 1997 he held a split appointment at the University of Hawaii at Manoa and Copenhagen Business School. From 1997 to 2001 he continued as a Visiting Professor at the University of Hawaii at Manoa. He has also held teaching or research appointments at the University of California, Berkeley; Cranfield School of Management (UK); and the North European Management Institute (Norway). He was a former president of the Academy of International Business, and was a western director of the Financial Management Association.

Professor Stonehill received a BA (History) from Yale University (1953); an MBA from Harvard Business School (1957); and a PhD in Business Administration from the University of California, Berkeley (1965). He was awarded honorary doctorates from the Aarhus School of Business (Denmark, 1989), the Copenhagen Business School (Denmark, 1992), and Lund University (Sweden, 1998).

He authored or co-authored 9 books and 25 other publications. His articles appeared in Financial Managementcite>, Journal of International Business Studies, California Management Review, Journal of Financial and Quantitative Analysis, Journal of International Financial Management and Accounting, International Business Review, European Management Journal, The Investment Analyst (UK), Nationaløkonomisk Tidskrift (Denmark), Sosialøkonomen (Norway), Journal of Financial Education, and others.

Michael H. Moffett is Continental Grain Professor in Finance at the Thunderbird School of Global Management at Arizona State University, where he has been since 1994. He also has held teaching or research appointments at Oregon State University (1985 to 1993); the University of Michigan, Ann Arbor (1991 to 1993); the Brookings Institution, Washington, DC; the University of Hawaii at Manoa; the Aarhus School of Business (Denmark); the Helsinki School of Economics and Business Administration (Finland), the International Centre for Public Enterprises (Yugoslavia); and the University of Colorado, Boulder.

Professor Moffett received a BA (Economics) from the University of Texas at Austin (1977), an MS (Resource Economics) from Colorado State University (1979), an MA (Economics) from the University of Colorado, Boulder (1983), and PhD (Economics) from the University of Colorado, Boulder (1985).

He has authored, co-authored, or contributed to a number of books, articles, case studies, and other publications. He has co-authored 2 books with Art Stonehill and David Eiteman, Fundamentals of Multinational Finance, and this book, Multinational Business Finance. His articles have appeared in the Journal of Financial and Quantitative Analysis, Journal of Applied Corporate Finance, Journal of International Money and Finance, Journal of International Financial Management and Accounting, Contemporary Policy Issues, Brookings Discussion Papers in Inter-national Economics, and others. He has contributed to a number of collected works including the Handbook of Modern Finance, the International Accounting and Finance Handbook, and the Encyclopedia of International Business. He is also co-author of 2 books in multinational business with Michael Czinkota and Ilkka Ronkainen, International Business (7th Edition) and Global Business (4th Edition), and The Global Oil and Gas Industry: Strategy, Finance, and Management, with Andrew Inkpen.

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