International financial management 2nd edition

International Financial Management Bekaert Hodrick 781292 021393 2e ISBN 978-1-29202-139-3 International Financial Management Geert J Bekaert Robert J Hodrick Second Edition International Financial Management Geert J Bekaert Robert J Hodrick Second Edition Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk © Pearson Education Limited 2014 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners ISBN 10: 1-292-02139-X ISBN 13: 978-1-292-02139-3 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Printed in the United States of America P E A R S O N C U S T O M L I B R A R Y Table of Contents Glossary Geert Bekaert/Robert J Hodrick 1 Globalization and the Multinational Corporation Geert Bekaert/Robert J Hodrick 19 The Foreign Exchange Market Geert Bekaert/Robert J Hodrick 53 Forward Markets and Transaction Exchange Risk Geert Bekaert/Robert J Hodrick 87 The Balance of Payments Geert Bekaert/Robert J Hodrick 117 Exchange Rate Systems Geert Bekaert/Robert J Hodrick 147 Interest Rate Parity Geert Bekaert/Robert J Hodrick 187 Speculation and Risk in the Foreign Exchange Market Geert Bekaert/Robert J Hodrick 219 Appendix: The Siegel Paradox Geert Bekaert/Robert J Hodrick 255 Appendix: The Portfolio Diversification Argument and the CAPM Geert Bekaert/Robert J Hodrick 257 Purchasing Power Parity and Real Exchange Rates Geert Bekaert/Robert J Hodrick 259 Measuring and Managing Real Exchange Risk Geert Bekaert/Robert J Hodrick 295 10 Exchange Rate Determination and Forecasting Geert Bekaert/Robert J Hodrick 329 I 11 International Debt Financing Geert Bekaert/Robert J Hodrick 369 12 International Equity Financing Geert Bekaert/Robert J Hodrick 415 13 International Capital Market Equilibrium Geert Bekaert/Robert J Hodrick 447 Appendix: The Mathematics of International Diversification Geert Bekaert/Robert J Hodrick 495 14 Country and Political Risk Geert Bekaert/Robert J Hodrick 497 15 International Capital Budgeting Geert Bekaert/Robert J Hodrick 543 Appendix: Deriving the Value of a Perpetuity Geert Bekaert/Robert J Hodrick 575 16 Additional Topics in International Capital Budgeting Geert Bekaert/Robert J Hodrick 577 17 Risk Management and the Foreign Currency Hedging Decision Geert Bekaert/Robert J Hodrick 613 18 Financing International Trade Geert Bekaert/Robert J Hodrick 641 19 Managing Net Working Capital Geert Bekaert/Robert J Hodrick 669 20 Foreign Currency Futures and Options Geert Bekaert/Robert J Hodrick 699 21 Interest Rate and Foreign Currency Swaps II Geert Bekaert/Robert J Hodrick 743 Index 773 GLOSSARY absolute borrowing advantage A situation in which one corporation’s all-in costs are lower in each of two currencies than another corporation’s all-in costs absolute purchasing power parity The idea that the exchange rate should adjust to equate the internal and external purchasing powers of a money, in which case the exchange rate, quoted as domestic currency per foreign currency, should equal the ratio between the domestic and foreign price levels ad valorem duties Tariffs that are quoted as a certain percentage of the export price adjusted net present value (ANPV) A capital budgeting technique that derives the value of a firm or project in steps, first deriving the present value of the all-equity free cash flows and then adding the present value of financial side effects and growth options affiliate bank A bank partly owned but not controlled by a foreign parent bank agency costs The costs that the owners of a firm incur because of the separation of ownership and control agency theory Economic models that explore the problems in corporations arising from the separation of ownership and control and that devise ways to resolve them AIC (all-in-cost) principle The discount rate or internal rate of return that equates the present value of all the future interest and principal payments to the net proceeds (face value minus fees) received by the issuer American depositary receipt (ADR) A stock certificate traded in the United States representing a specific number of shares in a company listed on a foreign stock exchange that are held in custody by a U.S depositary bank that issues the ADR American option An option that can be exercised at the discretion of the buyer any time between the purchase date and the maturity date American quote The dollar price of a foreign currency— that is, the amount of dollars it takes to purchase one unit of the foreign currency anti-globalization An umbrella term encompassing separate social movements, united in their opposition to the globalization of corporate economic activity and the free trade with developing nations that results from such activity appreciation In discussing changes in exchange rates, the strengthening or increase in value of one currency relative to another arbitrage The process of earning riskless profits by simultaneously buying and selling equivalent assets or commodities arbitrage pricing theory (APT) An asset pricing model based on the idea that a number of economy-wide factors systematically affect the returns on a large number of securities and hence drive their expected returns ask rate The price (exchange rate) at which a dealer is willing to sell one currency in return for another currency Also called the offer price asset market approach (to exchange rate determination) Exchange rate models that view the exchange rate as an asset price, with its value depending on current fundamentals (such as relative money supplies and output levels of countries) and expected values of future economic fundamentals asset securitization The packaging of assets or obligations into securities for sale to third parties asset substitution A situation in which managers, acting in the interests of shareholders, accept a high-variance project that may lower overall firm value but that increases shareholder value Association of Southeast Asian Nations (ASEAN) A regional economic and political organization that is designed to promote trade and investment in its member countries: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam aval An irrevocable guarantee of the debts of an importer, usually guaranteed by the importer’s government or its bank average-rate option An option contract in which the payoff depends on the difference between the strike price and the average exchange rate, calculated from the initiation of the contract to the expiration date B , A (banker’s acceptance) A document, tradable in financial markets, that is created when a bank stamps and signs a time draft indicating that the bank will pay the face value of a draft at maturity back-to-back loan An agreement that is similar in structure to a parallel loan but in which the loans are made between the multinational parent corporations, which then lend to their subsidiaries in two different countries, and which contains the right of offset Baker Plan A 1985 plan that constituted a second phase of the handling of the developing country Debt Crisis It relied heavily on countries agreeing to change their economic policies following guidelines set by the IMF in exchange for a modest amount of new loans extended to developing countries by private commercial banks and the World Bank balance of payments (BOP) A summary of the value of the transactions between a country’s residents, businesses, and government with the rest of the world for a specific period of time, such as a month, a quarter, or a year balance-sheet hedge The practice of denominating debt in a currency in which a firm has revenues Bank for International Settlements (BIS) An international organization based in Basel, Switzerland, that promotes international monetary and financial stability and serves as a bank for the world’s central banks From International Financial Management Second Edition Geert Bekaert, Robert Hodrick Copyright © 2012 by Pearson Education, Inc Published by Prentice Hall All rights reserved Glossary barrier option A traditional option with an additional requirement that either activates the option or extinguishes it if the exchange rate passes through a prespecified barrier exchange rate Basel Accord An agreement between G10 countries that sets capital requirements (also known as “capital adequacy rules”) for internationally active banks basis point adjustment The process of changing the interest rate on the side of a currency swap the client is paying away from the bank’s quoted rate when the client wants to receive interest cash flows from the bank at something other than the bank’s quoted rate basis risk The risk arising from differences between the current spot price and the futures price and the fact that the maturity of what is being hedged may not be the maturity of the futures contract basket of currencies A composite currency composed of various amounts of other currencies beta The systematic risk of an individual asset in the capital asset pricing model (CAPM) Measured as the covariance of the return on the security with the return on the market portfolio divided by the variance of the return on the market portfolio bid–ask spread The difference between the ask rate and the bid rate The spread constitutes a source of profits for market makers bid rate The price (exchange rate) at which a dealer is willing to buy one currency in return for another currency bilateral investment treaty (BIT) An agreement between two countries that promises mutual respect for, and protection of, investments in each other’s territory, with the purpose of encouraging international capital investment bilateral netting system A payment system between two parties who agree to transfer only the net amounts that are owed to each other binomial option pricing Model to price options that assumes that random movements in the underlying asset, over short intervals, are well approximated by a discrete, two-state model The option is then priced by considering a portfolio of stocks and bonds, or currencies, that replicates the payoff to the option over the two states B , L (bill of lading) A contract issued to an exporter by a shipping company that will transport the exporter’s goods to their destination blocked funds A problem encountered by multinational corporations when government restrictions in a host country prevent the transfer of foreign currency out of that country BOP See balance of payments Brady bonds Bonds issued by countries in response to the Brady Plan in which the principal and some initial interest payments are collateralized Brady Plan A comprehensive plan to resolve the developing countries Debt Crisis developed in 1989 by then U.S Treasury Secretary Nicholas Brady This plan put pressure on banks to offer some form of debt relief to developing countries It also called for an expansion in secondary market transactions aimed at debt reduction breakout Term used by chartists to describe a situation when a trading range is broken and a sudden rise or fall in prices is expected Bretton Woods Agreement An accord signed by 44 Allied nations toward the end of World War II It established regulations and regulatory bodies for an international monetary system, based on a target zone relative to the dollar, which itself was fixed relative to gold at $35 per ounce The system collapsed in 1971 buyback An agreement in which an exporter of physical capital agrees to accept payment in the form of the output of a plant, which the exporter helps to construct in a foreign country buyer credit An international finance method used when expensive capital equipment is imported in which the exporter arranges for a financial institution to grant credit to the importer to enable payment to the exporter call option See foreign currency call option cannibalization of exports The possible loss of export revenue when a foreign market is served by direct foreign investment and the former exports to that market are unable to be sold elsewhere capital account A major account of the balance of payments that records the purchases and sales of foreign assets by domestic residents as well as the purchases and sales of domestic assets by foreign residents capital adequacy rules See Basel Accord capital allocation line (CAL) A description of the feasible trade-offs between expected return and standard deviation that arise when allocating capital between a risk-free asset and a single risky asset capital asset pricing model (CAPM) A model in which an asset’s risk premium, its expected return in excess of the riskfree rate, is determined by its beta with respect to the market portfolio times the risk premium on the market portfolio capital budgeting The process of valuing investments by taking their net present values and allocating capital upon that basis capital controls Regulations that restrict the flow of capital into and out of a country capital expenditures The investments in plant and equipment that a firm makes in expectation of future profitability capital flight An outflow of capital from a country, typically associated with a prospective devaluation of the currency or other actions by the country’s government that would result in a loss of wealth for investors in that country capital inflow Purchases by foreign residents of the assets of a country, such as its stocks, bonds, or real estate, or the sale of foreign assets by domestic residents capital outflow Purchases by domestic residents of the assets of a foreign country, such as its stocks, bonds, or real estate, or the sale of domestic assets by foreign residents CAPX See capital expenditures carry trade Investment in a high-yield currency while borrowing in a low-yield currency (or buying the high-yield Glossary currency in the forward market relative to the low-yield currency) cash-in-advance Export financing technique requiring the importer to pay the exporter before the goods are shipped, implying that the exporter does not have to finance the goods during their shipment centralized debt denomination A situation in which a multinational corporation borrows in the company’s domestic currency certificate of analysis A document that attests to some measurable characteristics of a shipment certificate of origin A document that indicates the source of a shipment of merchandise chartism Forecasting technique (for exchange rates or other asset prices) that tries to infer possible future trends based only on information regarding the actual trading history of the asset price clean acceptance An export finance method in which a bank agrees to accept a certain number and amount of time drafts submitted by the exporter The bank immediately discounts the drafts to provide financing for the exporter, and the exporter repays the face amount of the draft to the bank at maturity clean bill of lading A shipping contract that indicates that the carrier believes the merchandise was received in good condition, based on visual inspection clearing arrangements International barter conducted with the extension of credit from one party to the other Clearing House Interbank Payments System (CHIPS) An electronic payment system that transfers funds and settles transactions in U.S dollars clearinghouse An agency or a separate corporation of a futures exchange that acts as a buyer to every clearing member seller and a seller to every clearing member buyer The clearinghouse also settles trading accounts, collects and maintains margin monies, regulates delivery, and reports trading data clearing member A member of an exchange clearinghouse The member is usually a company, which is responsible for the financial commitments of its customers for whom it clears trades closed-end fund An investment fund that trades on a stock exchange at a price that may differ from the net asset value of the assets of the managed portfolio CLS Bank A financial institution owned by the world’s largest financial groups that engages in continuous linked settlement by collecting details of all the currency trades between its member banks, using multilateral netting to figure net payments for each bank and finalizing pay-ins and pay-outs to the system over a 5-hour window CME Group The Chicago Mercantile Exchange Group, a large futures and options exchange, that trades, among other contracts, currency futures and options on those futures commercial invoice A document given by an exporter to an importer that contains a detailed description of the merchandise in question, including unit prices, the number of items, and the financial terms of the sale Commodity Futures Trading Commission (CFTC) The government organization that regulates the U.S futures industry comparative advantage The idea that international trade makes everyone better off when countries specialize in the production of goods that they produce relatively most efficiently comparative borrowing advantage A situation in which one corporation’s ratio of all-in costs for borrowing in two currencies is lower than another corporation’s ratio of all-in costs compensatory trade A type of complex countertrade conditional expectation The probability-weighted average of future events, such as possible future exchange rates, which is also the mean of a conditional probability distribution for that variable Also called the conditional mean conditional mean See conditional expectation conditional probability distribution A description of possible future events and their respective probabilities of occurrence that is based on an information set at a point in time conditional standard deviation The square root of the variance of a conditional probability distribution of a particular variable, such as the rate of currency appreciation Often called the conditional volatility when applied to a financial return conditional volatility See conditional standard deviation confirmed documentary credit (D , C) A documentary credit in which, in addition to the bank that issues the documentary credit, a second commercial bank that is usually well known to the exporter agrees to honor the draft presented by the exporter consular invoice A document filled out by an exporter in consultation with the local consulate of the importing country that provides information to customs officials in the importing country, with the goal of preventing false declarations of the value of the merchandise contagion The phenomenon in which a currency or other financial crisis spreads from one country to another merely as a result of a crisis occurring in a first country conversion The process of buying a foreign currency in the forward market and selling it forward with a synthetic forward contract constructed with options convertible bond A corporate bond that is convertible into a fixed number of equity shares of the corporation prior to maturity convex tax code A tax system that imposes a larger tax rate on higher incomes and a smaller tax rate on lower incomes, also called a progressive system of taxation corporate governance The legal and financial structure that controls the relationship between a company’s shareholders and its management correlation A number between –1 and that indicates how closely related are the random variations in two variables correspondent bank A bank that performs services as a proxy for financial institutions that lack an on-site presence in a particular country Glossary costs of financial distress The loss of firm value from the direct costs of bankruptcy associated with legal, consulting, and accounting fees and the indirect losses associated with the possibility that the firm may go into bankruptcy counterpurchase A trading activity that is similar to a buyback, except the exporter agrees to purchase goods that are not produced by the importer countertrade A variety of international trade activities in which exporters and importers exchange goods and services without necessarily having to use money as a medium of exchange country credit spread The difference between the yield on a bond issued by a developing country in an international currency and the government bond yield of the country that issues the international currency This spread reflects sovereign risk country fund A closed-end fund that invests in the securities of one particular country country risk The risk that a country’s political environment as well as its economic and financial environment may adversely affect a company’s cash flows country risk premium The additional yield above the risk-free rate demanded by investors in government bonds to protect them against political risk country risk rating Assessments of country risk produced by a number of specialized organizations, typically for a large number of countries covariance The probability-weighted average of the product of the deviations of two random variables from their means, which measures how the two random variables move together, or covary with each other covered interest rate arbitrage An arbitrage that exploits deviations from covered interest rate parity covered interest rate parity A no-arbitrage relationship between spot and forward exchange rates and the two nominal interest rates associated with these currencies crawling peg system A target zone system wherein the bands are reset over time, typically in response to movements in inflation credit default swap (CDS) A bilateral insurance contract between a protection buyer and a protection seller to protect against default on a specific bond or loan issued by a corporation or sovereign The protection buyer pays semiannual or annual insurance premiums to the protection seller In return, when there is a default event, the protection seller transfers money (e.g., the face value of the bond) to the protection buyer in return for the defaulted bond credit rating A rating that is provided by a credit-rating firm and that indicates the creditworthiness of a corporate or government borrower credit spread The difference between the borrowing cost of a corporate borrower and the borrowing cost of a risk-free government on a security with similar maturity credit transaction In balance of payments accounting, any transaction that results in a receipt of funds from foreigners; in other words, any transaction that gives rise to a conceptual inflow or source of foreign currency cross-currency settlement risk The risk that a financial institution will fail to deliver currency on one side of a foreign exchange transaction, even though the financial institution has received the other currency from its counterparty to the transaction Also called Herstatt risk cross-holding The practice of one firm owning shares in another firm cross-listing The practice of listing shares on an exchange outside the country in which the company is headquartered cross-rate An exchange rate between two currencies not involving the U.S dollar currency board An exchange rate system in which the monetary base of the domestic currency is 100% backed by a foreign reserve currency and is fully convertible into the reserve currency at a fixed rate and on demand currency swap An agreement between two counterparties to exchange principals denominated in two currencies of equivalent value at the spot exchange rate and then to have one party pay interest and principal on the currency it received and the other party to pay interest and principal on the currency it received currency warrants Longer maturity foreign currency options that are sometimes issued by major corporations and are actively traded on exchanges current account A major account of the balance of payments that records transactions in goods and services, transactions associated with the income flows from assets, and unilateral transfers cylinder option A contract that allows the buyer to specify a desired trading range in the future so that if the future spot rate falls outside of the range, the buyer transacts at the limits of the range Unlike the range forward contract, the trading range is set to allow the buyer either to pay money or possibly to receive money up front for entering into the contract D , A (documents against acceptance) collection A method of international trade in which an exporter extends credit to an importer, which acknowledges its legal obligation to pay the face amount of a draft at maturity by having the collecting bank present a time draft to the importer who must sign it, date it, and write accepted across it before the shipping documents are released to the importer dark pools Electronic trading systems that deliberately sacrifice price and volume transparency to offer anonymity to large traders D , C (documentary credit) A method of international trade in which commercial banks stand between an importer and an exporter to assure the exporter of payment after fulfilling certain requirements In the United States, also known as a letter of credit (L>C) debit transaction In balance of payments accounting, any transaction that results in a payment to foreigners; in other words, any transaction that gives rise to a conceptual outflow or use of foreign currency Glossary debt buyback A situation in which a country buys back its own outstanding loans at a discount Debt Crisis A 1980s economic and financial crisis that occurred in a large number of developing countries after many defaulted on their loan payments to international banks and that took a full decade to be resolved debt–equity swap A situation in which a multinational corporation buys the debt of a country from an original creditor at a discount, presents the debt to the debtor government, receives local currency equal to the face value of the debt, and then uses the local currency to make an equity investment in that country debt overhang The notion that a country saddled with a huge debt burden has little incentive to implement economic reforms or stimulate investment because the resulting increase in income will simply be appropriated by the country’s creditors in the form of higher debt payments Also used to describe a similar situation within a firm in which the management has no incentive to undertake profitable investments because the benefits accrue mostly to bondholders decentralized debt denomination A situation in which a multinational corporation borrows in the currencies in which its revenues are received deemed-paid credit The amount of domestic tax credit a company receives for foreign taxes paid by one of its subsidiaries deficit In balance of payments accounting, the idea that debits on a particular account are greater than credits on that account deflation The rate of change of the price level when prices are falling delta (of an option) The change in the value of the derivative asset with a small change in the value of the underlying asset delta neutral The property of a portfolio of foreign exchange positions, of not being exposed to risk of loss from small changes in foreign exchange rates demand curve A function that indicates the quantity demanded by consumers, given the relative price of a product demutualization The process of converting stock exchanges from non-profit, member-owned organizations to for-profit, investor-owned, and typically publicly traded companies density function The mathematical formula that describes a probability distribution depository receipt See DR depreciation In discussing changes in exchange rates, a weakening or decrease in the value of one currency relative to another depreciation (accounting) Accounting deductions for corporate income tax associated with previous capital expenditures on plant and equipment depreciation tax shield The amount of taxes that a corporation avoids because depreciation is a deductible expense derivative securities Financial contracts, such as forwards, futures, options, and swaps, whose values depend on the values of underlying asset prices, such as exchange rates, interest rates, or stock prices devaluation A change in a fixed exchange rate that increases the domestic currency price of foreign currency and thus decreases the value of the domestic currency devaluation premium The part of the interest rate on a particular currency that reflects its expected depreciation relative to another currency digital options Contracts that pay off an amount of cash or the value of an asset when a certain condition is met— for example, when the spot rate is lower than the strike price direct quote An exchange rate quote expressed as an amount of domestic currency per unit of foreign currency dirty float currency system A floating exchange rate system in which a central bank nonetheless intervenes in the foreign exchange market, buying and selling its currency to affect its foreign exchange value discount rates Expected rates of return used to take present values documentary collection A method of international trade, with some bank involvement, in which an exporter retains control of goods until an importer has paid or is legally bound to pay dollarization The phenomenon in which use of a foreign currency drives out the domestic currency as a means of payment and as a savings vehicle domestic bonds Bonds that are issued and traded within the internal market of a single country and are denominated in the currency of that country domestic CAPM An application of the CAPM that assumes that the assets of a country are held only by investors who reside in that country so that the market portfolio is a local market index D , P (documents against payment) collection A method of international trade in which an importer must pay the amount of a sight draft to the collecting bank before the trade documents are released DR (depositary receipt) A stock certificate that represents a specific number of shares in a company listed in a foreign stock exchange that are held in custody by a depositary bank that issues the DR dragon bond A Eurobond targeted at the Asian market (outside Japan) with Asian syndication dual-currency bond A straight, fixed-rate bond issued in one currency, for example yen, which pays coupon interest in that same currency, but the promised repayment of principal at maturity is denominated in another currency, for example U.S dollars early exercise The exercise of an American option prior to maturity earnings before interest and taxes (EBIT) Revenue minus cost of goods sold minus selling and general administrative expenses and minus accounting depreciation economic and monetary union (EMU) Agreement among European Union countries to achieve an economic 54-56, 58-59, 87-88, 117, 125, 141, 185, 198, 202, 209, 232, 329, 372, 374, 377-379, 381, 386, 392, 404, 412, 443, 519-520, 543, 563, 571, 577, 585, 610, 614-616, 632, 636, 654, 662, 670, 678-680, 682, 696, 700, 716, 734, 741, 743-749, 768 professional, 58 publicly held, 614, 636 Correspondent banks, 391, 411 Corruption, 30, 499, 513-517, 538-539, 644 Cost of goods sold, 5, 547, 557, 681, 685, 698 Cost of living, 261-262 Costa Rica, 46, 148, 178, 518 exchange rates, 178 Costs, 1, 3-4, 10-12, 15-16, 21, 23, 29, 31, 43, 46, 51, 57-59, 65, 70, 72-73, 87, 96-97, 100-101, 103, 138, 144, 161, 164, 171-172, 176, 178, 182-183, 196, 198, 200, 203, 206, 215, 234, 243, 265-268, 272, 275, 280-281, 292, 295-297, 299-309, 313-326, 328, 335, 358, 362, 375-377, 383, 397, 399-402, 404-405, 407-413, 423-431, 438-443, 445, 466, 473, 476, 478, 480, 484-485, 487, 498-499, 501, 505, 511-512, 516, 519, 527, 530, 536-537, 544-547, 550-557, 560-562, 568-569, 571-574, 577, 585, 587, 590, 606, 608, 610, 612, 613, 615-616, 621, 624, 627, 629-630, 632-634, 636-637, 644, 646, 651, 654-657, 666, 671-673, 675-677, 680-681, 683-687, 691-694, 696-697, 704, 716, 719, 722-726, 728, 733-735, 738, 740-741, 749, 757, 759-760, 766, 768-769 conversion, 3, 182, 318, 323, 358, 499, 505, 733 distribution, 3, 11-12, 23, 29, 302, 442, 545, 556, 571, 675, 677, 681, 683-685, 696-697, 734 labor costs, 23, 275, 299, 516, 560, 573, 587 licensing, 10, 442, 556-557, 572 product and, 630, 683 product lines, 138 sales and, 296, 319 Counterparty risk, 106, 678, 714, 747 Counterpurchase, 4, 664, 667 Countertrade, 3-4, 8, 642, 662-667, 688 Countries, 1-17, 19-21, 23-24, 27, 29, 31, 33-46, 48-51, 54, 57, 61, 66, 73, 75-76, 80, 83, 100, 102, 107, 117-118, 121, 124-126, 128-132, 134, 136-139, 141-144, 147-151, 153-157, 160, 162, 164-171, 173, 176-186, 204, 206-207, 217, 222, 233, 238, 242, 260, 262, 264-270, 272-274, 276, 278, 280-286, 291-294, 295-296, 299, 301, 310, 313, 315-316, 323-327, 329, 331-332, 334-335, 342-345, 347-348, 355, 357-364, 366, 371, 373-374, 378-380, 386-393, 395-396, 398-399, 404-405, 407, 410-412, 416, 419-420, 422, 424, 426-427, 430-431, 434-436, 439-441, 443, 445, 450, 452-453, 455-459, 469-470, 472, 475-476, 478, 481-486, 488-491, 497-506, 511-513, 515-519, 521, 530, 532-534, 536, 539-541, 547, 550, 552, 554, 577, 587, 602, 609-611, 623, 626, 630, 632, 635-636, 643-644, 647, 649, 657-662, 664, 666, 672, 678-683, 686-687, 698, 738, 744-745, 750, 760-761, 768-769 current account balances of, 128, 130 segmentation and, 445, 481-482 Country risk, 4, 206-207, 497-498, 501, 511-514, 516-517, 524, 526-527, 530, 539-542, 656, 658 defined, 517, 530 managing, 497 nature of, 513, 658 Coupons, 211, 380, 384, 401, 408, 412, 522, 758, 767 Covenants, 636 CPI, 272, 275, 285, 345 Crawling bands, 151 Crawling pegs, 148, 150, 173, 176 credibility, 171, 176-177, 181, 185 Credit, 2-5, 7-8, 10, 14-16, 26, 58-61, 73, 76, 78, 105-106, 119-124, 129, 135, 142, 144, 155-156, 158-159, 161, 171, 176, 179, 201-204, 206, 215, 319, 366, 374, 384, 388, 391-398, 400, 402-407, 410-413, 503, 506, 511, 513, 517-519, 521, 525, 530-531, 533, 536-537, 542, 552, 563-566, 637, 643, 645-664, 666-667, 671, 674, 679-680, 688, 776 692-694, 696-697, 700-702, 710, 716, 744, 746-752, 754-755, 759-760, 768-769 debt financing, 374, 384, 388, 391-398, 400, 402-407, 410-413, 768 extension of, 3, 503, 661, 671 Credit cards, 73 Credit default swaps, 531, 746-747, 769 Credit enhancement, 752 Credit insurance, 15, 648, 660-661, 666, 688 credit limit, 659, 710 Credit line, 105, 179, 396, 659 Creeping expropriation, 533 Crisis management, 532 criticism, 50, 272, 393, 404, 610 Croatia, 148, 185-186, 518 Cross-border acquisitions, 51, 441 Cuba, 499 Culture, 39, 44 Currency, 1-17, 24, 39, 41, 43-45, 50-51, 54, 56-73, 75-78, 80-82, 84-85, 88-89, 94-107, 109-111, 113-115, 117-122, 124, 130-131, 134, 140-143, 145, 147-162, 164-186, 187, 189-210, 215-216, 218, 219, 221-222, 224-228, 230-235, 237-245, 248-253, 256, 260-261, 264-267, 271-276, 281-284, 286-287, 291-293, 295, 297-299, 301-302, 304, 310, 312-313, 315-317, 323-328, 329-330, 333-338, 340-348, 350-367, 370, 372-375, 377-378, 383, 385-388, 392-393, 399, 401, 404-413, 420, 429, 434-437, 448-452, 456, 470-471, 481-482, 484, 489, 492, 498-499, 501, 503, 506, 513, 515, 517-519, 524, 526-528, 530, 532-534, 539-541, 544, 547, 549, 577, 583, 585-588, 591, 596, 601-602, 604-607, 611, 613-639, 646, 648, 655, 662, 664, 672, 674-675, 679, 686, 688-691, 693-694, 696, 698, 699-741, 743-771 case study, 358, 524, 541, 587, 613 currency crisis, 44, 153, 171-172, 174, 177, 248-249, 337-338, 355, 359-360, 366, 526-527, 706 European Union, 5-6, 41, 63, 65, 76, 131, 171, 186, 361, 388, 392, 456, 710 exchange of, 7-8, 15, 76, 78, 88, 102, 301, 714, 746, 751-752, 765, 769 exchange rate system, 4-5, 7-8, 13, 15, 80, 88, 150-151, 153-154, 161, 165-166, 171-172, 175-176, 184-185, 359, 686 financial crisis and, 106, 183, 218, 750 fixed exchange rate system, 13, 80, 154, 165-166, 171, 176, 184, 686 floating exchange rate system, 5, 151, 161, 185 forecasting, 3, 16, 115, 226, 232, 250-251, 253, 298, 329-330, 333-338, 340-348, 350-367, 547, 549, 577, 585-586, 611, 631, 675 foreign exchange trading, 6, 56, 58-61, 75, 77-78, 85, 114, 162, 393 globalization of, 1, 43-44, 134, 383, 392, 436 government intervention, 161 managing risk, 41 net present value, 1, 12, 448, 544, 577, 585, 606, 611, 615, 618, 679, 746, 762, 767 risk, 2, 4-16, 24, 41, 50-51, 54, 57, 60, 67, 69, 73, 76-78, 84, 88-89, 94-107, 109-111, 113-115, 134, 140, 142, 147, 150-151, 153-154, 157, 161, 170, 172, 184-185, 187, 189-190, 193-194, 197-198, 200-209, 215-216, 218, 219, 221-222, 224-228, 230-235, 237-245, 248-253, 267, 295, 297-299, 301-302, 304, 310, 312-313, 315-317, 323-328, 329-330, 335, 353, 359, 364, 372-375, 383, 388, 393, 399, 404-412, 448-449, 451-452, 470-471, 481-482, 484, 489, 492, 498-499, 501, 503, 506, 513, 515, 517-519, 524, 526-528, 530, 532-534, 539-541, 544, 585-586, 588, 602, 605-606, 611, 613-639, 646, 648, 662, 674, 679, 686, 688-691, 693, 696, 698, 699-702, 706-710, 714, 716-719, 721-723, 725, 727, 734, 738-741, 743-745, 747-752, 755, 757, 759-760, 765, 768-770 small firms, 413, 634, 700 Currency basket, 6, 179, 471 Currency board, 4, 148, 150-151, 153-154, 171-173, 186, 253, 360, 499, 527-528, 540 Currency controls, 539, 744 Currency hedging, 613-639 Currency markets, 9, 12, 60, 73, 85, 89, 100, 168, 176, 181, 186, 196-198, 200, 203, 207, 216, 234, 250-251, 253, 301, 343, 353, 355, 364-365, 734, 738 Currency option, 357, 636, 711-712, 717, 739-741 Currency options, 4, 613, 629, 631, 699, 711, 714-717, 719, 721, 729, 733, 739-740 Currency pairs, 58, 60, 66, 75, 224, 355 Currency speculation, 59, 176, 222, 226, 228, 230, 235, 248, 250 Currency swap, 2, 4, 103, 745-746, 752-755, 757-759, 763-764, 766-770 Currency swaps, 215, 374, 393, 613, 631, 635, 743-771 Currency values, 242, 334, 352, 355, 738 Current account, 4, 8, 16, 27, 39, 117-122, 124-140, 142-146, 161, 164, 166, 168, 178, 335, 339, 343-344, 346-347, 356-357, 359-363, 386, 413, 498, 513-515, 524-525 Current account balances, 128, 130-131, 357, 363 Current account deficit, 27, 124, 126-128, 130-131, 133-137, 139-140, 143, 145, 166, 178, 335, 343-344, 347, 363, 413, 498, 524-525 Current account surplus, 126, 130, 135-137, 143, 145, 346-347 Current accounts, 131, 136, 144, 340 Current assets, 252, 374, 670-671, 696 Current liabilities, 670, 696 Curves, 211-212, 310, 313, 552 supply, 310 Customers, 3, 6-8, 14, 45, 54-55, 57, 59-60, 70, 73-74, 83, 101-102, 105, 115, 176, 196, 268, 270, 301, 305, 325-327, 387-388, 391-392, 425, 512, 537, 552, 556, 571, 573, 627, 633, 659-660, 666, 671, 683, 688, 692-693, 696-697, 699-702, 752 Customs, 3, 39, 643-645, 647, 649, 657, 665-666 Cyprus, 148, 150, 182, 418, 421, 426-427, 518 Czech Republic, 63, 148, 284, 416, 422, 477, 518, 710 D Damage, 512, 533, 646, 665 property, 512 Damages, 365, 512-513, 520, 534-535, 538, 649 general, 365, 538 special, 535 data, 3, 6, 12, 16, 20-22, 33-36, 43, 45, 50, 66, 69, 78, 89-91, 98-99, 110-113, 115, 124-126, 130-131, 133, 141, 144-145, 151-154, 156, 164, 180, 183, 188-189, 193, 197, 200-201, 204-206, 208, 212, 217-218, 220, 224-225, 235-237, 239, 242-243, 245-248, 251-253, 260-262, 268-270, 272-273, 275-279, 282, 284-285, 287, 293-294, 305, 316, 332, 335-336, 343, 345, 348-350, 352-357, 362-366, 378-380, 383, 387, 403, 405, 416, 418, 421, 427-430, 432, 434, 444, 450-452, 455, 458-459, 472, 474-483, 486-491, 500, 514-515, 517, 529, 531, 541, 588, 592, 628, 633-636, 662, 667, 682, 704, 715, 718, 721, 728, 736, 740, 746-747 data processing, 45 Database, 35, 115, 284, 418, 427, 429 systems, 429 databases, 38, 634 dates, 40, 101-102, 105, 107, 114, 178, 202, 374, 481, 651, 700, 707, 765 Debits and credits, 659, 739 Debt, 1-3, 5, 7-8, 10-15, 17, 25, 37, 39-40, 78, 127, 131-134, 137-138, 140-141, 143-145, 158, 169, 172, 178, 181, 183-184, 207, 244, 326, 361-362, 369-413, 419, 441-442, 448, 456, 475, 498, 501-506, 513-515, 517-519, 521, 523-526, 530, 534, 537-542, 544-548, 550-555, 567-569, 571, 573, 577-585, 597, 603-604, 606-607, 609-612, 615, 627-629, 631, 633-635, 638, 654-655, 670-671, 674, 676, 688, 743, 745-746, 748-750, 754-759, 763-764, 768-770 defined, 378, 395, 406, 442, 517, 530, 546, 571, 580, 610 Debt burden, 5, 172, 361, 503 Debt crisis, 1-2, 5, 39, 178, 183, 456, 498, 501-503, 505-506, 518, 526, 539-540, 609, 750 Debt financing, 369-413, 550, 571, 768 sources of, 370-371, 400, 411 Debt forgiveness, 127, 609 Debt markets, 15, 184, 370, 377, 404 Debt ratio, 515 Debt ratios, 515 Debt relief, 2, 505, 539 Debt service, 132, 373, 498, 502, 505, 513-515, 745 deception, 424 Decision making, 260 Decision-making, 339 Decision-making process, 339 Defaulted bonds, 519 Deflation, 5, 261, 292, 372 Demand, 4-5, 11, 13, 16, 23, 58, 69, 80-81, 117, 119-122, 139, 145, 155-163, 165-168, 171, 182-184, 190, 196, 229-230, 250, 280-281, 283, 296-301, 309-311, 313-314, 323-328, 342, 346-347, 358, 370, 372, 374, 376, 382, 386, 397-398, 428, 434, 443, 448, 466-467, 471, 482, 487, 499, 501, 525, 544-545, 547, 549, 557-559, 570, 573, 587, 628, 643, 647-648, 650-651, 661, 666, 671, 673, 677-679, 696-697, 700, 749, 752 aggregate, 158, 160, 166, 346-347, 678 change in, 5, 11, 13, 58, 80-81, 162, 280-281, 299, 301, 323-325, 327, 376, 525, 547, 671, 673 currency, 4-5, 11, 13, 16, 58, 69, 80-81, 117, 119-122, 145, 155-162, 165-168, 171, 182-184, 190, 196, 230, 250, 281, 283, 297-299, 301, 310, 313, 323-328, 342, 346-347, 358, 370, 372, 374, 386, 434, 448, 471, 482, 499, 501, 544, 547, 549, 587, 628, 648, 679, 696, 700, 749, 752 derived, 466, 559 elastic, 299, 325 excess, 11, 160-161, 165, 167-168, 184, 230, 346, 467, 471, 573, 696 for money, 13, 16, 157, 184, 342, 673, 677-678, 696-697 increases in, 69, 182-183, 310, 325, 347, 358, 499, 501, 559, 671 inelastic, 299, 325 prices and, 13, 162, 250, 296, 313, 324, 328, 342, 525 Demand curve, 5, 11, 296-299, 301, 310-311, 314, 327-328 individual, 11 labor, 299 market, 5, 11, 298-299, 301, 310-311, 314, 327-328 Demand deposits, 155 Demand for products, 301 Demand schedule, 161 Demutualization, 5, 423 Denmark, 33, 55, 63, 78, 148, 175, 178, 182, 242, 284, 332, 345, 358, 417, 422, 427, 455, 475-476, 483, 499, 518, 673 corruption, 499 GDP, 284, 422 Department of Commerce, 125-129, 132-133, 146 Department of Justice, 61 Deposit insurance, 26, 362, 391 Deposits, 6-7, 10, 26, 76, 118, 120-121, 144, 155-156, 159, 179, 188, 190-191, 196-198, 201, 215, 217, 361-362, 390-392, 395-396, 420, 501-502, 521, 540, 667, 749 Depreciation, 5, 8-9, 11, 13, 44, 80-84, 89, 98, 110, 113, 115, 140, 177, 234-236, 238, 240, 243, 245, 248, 251-252, 272, 274, 286, 289-293, 297-300, 303-306, 308-309, 315-320, 322-325, 327, 333, 342-344, 346-347, 356, 358, 362-364, 450, 546-549, 559-562, 564, 571-573, 589, 591-592, 594-598, 606-608, 611-612, 623, 628, 674, 679, 693-694, 707, 709, 719 Depreciation expense, 547, 591 Depreciation of a currency, 9, 248 Depression, 36, 165-166, 186, 662 Deregulation, 24, 36, 41, 377, 383, 393, 410, 422, 528 Derivatives, 10, 24-25, 41, 49, 56, 85, 87, 115, 126-129, 392, 422, 614, 634-635, 638, 699, 738, 741, 744, 752, 771 design, 14, 23, 30, 32, 37, 45, 55, 295, 316, 436, 534, 680, 688, 734 Detailed analysis, 743 Determinant, 251, 359, 519, 635 Deutsche mark, 64, 110, 115, 151, 156-157, 173, 180-181, 224, 227, 236, 239, 249, 274, 276-277, 350, 358-359, 701, 745 Devaluation, 2, 5, 80, 88, 130, 153, 166, 168-170, 172, 175-176, 181, 185-186, 247-253, 274, 279, 355-359, 361-363, 506, 525-528, 533, 686, 690-691, 693-695, 697-698, 701 Developed countries, 21, 23, 31, 34-35, 37, 39, 42-43, 45-46, 49-50, 117, 131, 134, 141, 148, 157, 162, 177, 204, 222, 266, 278, 361, 386, 398, 405, 419, 426-427, 455, 478, 481-482, 490, 515, 518, 533-534, 536, 539 defined, 31 World Bank, 37, 50, 533-534, 539 Developed country, 34, 477, 517, 534, 643, 678 Developing countries, 1-2, 5-6, 9, 11, 17, 20-21, 23, 34, 37-39, 42-46, 50, 117, 124, 131, 156-157, 165, 167, 176-177, 185, 204, 206-207, 329, 335, 347, 366, 386, 398-399, 419, 443, 497, 501-503, 505-506, 518-519, 532, 534, 536, 539 debt crisis, 1-2, 5, 39, 501-503, 505-506, 518, 539 defined, Developing economies, 35, 39, 386 Developing nations, 1, 44-45, 533 diagrams, 725 Direct channel, 162 Direct investment, 7, 29, 34, 41, 50-51, 132, 134, 141, 161, 520, 532, 542, 554, 678, 684, 687 Direct quote, 5, 65, 67 Direct quotes, 62, 66, 82 Directive, 424 Discipline, 166, 169-170, 394, 486-487 Discount rate, 1, 17, 211, 213, 216, 302, 337, 401, 411, 448, 480, 482, 506-511, 528-529, 531, 535, 539-541, 544, 548-551, 553, 561, 571-573, 576, 577-578, 580, 583, 585-589, 593-595, 606, 611, 615, 618, 620-621, 637, 658 Discounts, 3, 12, 109-111, 115, 187, 192, 209, 242, 428, 583, 610, 656, 658 Disintermediation, 7, 377, 410-411 Disposable income, 13, 136, 143 Disposal, 136, 162, 520 Dispute resolution, 9, 534, 644 Distance, 269, 643 Distribution, 3, 5-8, 11-13, 23, 29, 49, 89-94, 111, 114, 150, 152-153, 184, 222-224, 228-229, 244, 248, 250, 252, 302, 351, 386, 433-434, 442, 497, 504, 534, 545, 556, 571, 664, 675, 677, 681-685, 688-690, 696-698, 730-732, 734, 739 bill of lading, 3, 8, 11-12 country risk, 497 emerging markets, 6, 23, 49, 114, 434 intermediaries in, 7, 698 Distributors, 75 Diversifiable risk, 229, 544 Diversification, 40, 229, 257-258, 394, 437, 448, 451, 453-459, 466, 469, 477-478, 480, 484-486, 489, 492-493, 495-496 Diversity, 404, 610 Diverting, 30 Dividend policy, 612, 634, 639, 679-680, 697 Dividends, 8, 29, 118, 121, 132, 424, 431, 437, 440, 449, 451, 513, 546, 557, 562-566, 569, 572-573, 609, 630, 672, 678-680, 682, 684, 686, 696 Documentation, 15, 75, 394, 433 documents, 4-5, 16, 183, 483, 642-650, 652-654, 665-666, 683 production of, 647-648 Doha Round, 21, 41 Dollar, 1-2, 4, 6-7, 13, 15-16, 27, 34, 56-58, 60, 62-71, 73-74, 76-77, 80-85, 87-95, 98, 100-101, 103-105, 109-115, 118-119, 122-124, 129, 133, 138-141, 144, 146, 147-151, 155-157, 159-164, 166-167, 171-173, 177-178, 184-186, 187, 189-190, 193-201, 203-206, 208, 211, 213-218, 220-221, 223-228, 230-231, 233-244, 246-247, 252-253, 256, 260-261, 263-268, 270-278, 280-291, 293, 295-296, 298-309, 316, 324-327, 329-330, 337-338, 341, 343-345, 347-348, 350-351, 355, 357, 359-361, 363-366, 372-375, 384-386, 389, 394-395, 404-405, 412-413, 419, 426, 449-452, 455, 458, 463, 470-472, 479, 490-491, 498, 501-502, 504-505, 517, 520-523, 525-528, 537, 539-541, 554, 558, 560, 569, 573, 589, 592, 594-596, 602-608, 612, 613, 617-621, 624-625, 630, 632, 637-638, 646, 660, 684-685, 689-691, 693-695, 698, 700-703, 707, 710, 712-715, 717-728, 730, 733, 735-741, 743-745, 748, 750-751, 753-760, 762-767, 770-771 Bretton Woods agreement, 2, 166 cross rates, 224 exchange rates, 1, 4, 7, 13, 15-16, 58, 62, 64-69, 71, 73-74, 80-82, 84-85, 87-89, 91-94, 98, 101, 109-111, 114-115, 124, 133, 147, 149-151, 162, 164, 166, 173, 178, 184-186, 187, 189-190, 193-195, 198-200, 204, 206, 208, 213-217, 224, 226-227, 235-236, 238-241, 246, 253, 256, 260-261, 263-268, 270-278, 280-291, 293, 295, 301, 303, 305-307, 316, 324-327, 329-330, 337, 341, 343-345, 347-348, 350-351, 355, 360, 363-364, 366, 450, 471, 502, 589, 592, 602, 604-605, 617-621, 624, 630, 632, 637-638, 689-690, 693, 701, 707, 710, 719-722, 724-725, 728, 730, 733, 735, 737, 739-741, 759, 765-767, 770 international monetary fund, 65, 118, 146, 147-148, 156, 166, 276-278, 293, 345, 413, 502, 541, 741 SDR, 15, 149, 167 special drawing right, 15, 65, 149 value over time, 238, 618 Dollar reserves, 118, 129 Dollarization, 5, 171-173, 186 Dollars, 1, 3, 5, 34-35, 54, 56-58, 62, 64-65, 67-69, 71-72, 74, 76-77, 80, 84, 88-89, 96, 98, 100-111, 114-115, 119-120, 122-126, 129, 133-134, 140, 155-156, 159, 161-163, 165-168, 172-173, 189-191, 194-195, 198-200, 202-206, 208, 213-214, 216-217, 219-222, 228, 231, 233-234, 240-243, 252, 261, 263-264, 267, 273-275, 278, 282-284, 293, 295, 301-302, 306-307, 327, 337, 341, 349-350, 359-361, 372, 374, 379, 383-387, 395, 398, 402, 405-406, 412-413, 417-420, 431, 436-437, 449-450, 452, 457-459, 472, 477, 499, 501, 534, 540, 554, 563, 587-593, 595, 602-605, 617, 621-622, 632, 644, 646, 649-650, 660, 664, 684-685, 688-690, 693, 695, 698, 701, 703, 709-710, 712, 714, 716-719, 721-722, 727, 730, 733, 735, 737-738, 740-741, 744-746, 749, 753-754, 756-760, 762-770 Domestic corporation, 672 Domestic industries, 42 protection of, 42 Domestic trade, 661 Dominance, 49, 56, 156, 418 Dominican Republic, 148, 518 Double-counting, 56, 746 Draft, 1, 3-5, 15-16, 645, 648, 650-654, 656, 666 bill of exchange, 653 Dragon bonds, 383 drawings, 399 Drugs, 442, 475, 630, 632 Dubai, 422 Due diligence, 556 Dumping, 46, 664 Durable goods, 629, 632 Duties, 1, 31, 644, 684 legal, 31 Duty, 32 Dynamic pricing, 542 Dynamics, 131-132, 170, 186, 245-246, 353, 366, 493, 663 E Earnings, 5, 12-13, 24, 75, 87, 167, 304, 318, 338, 364, 371, 377, 395, 399, 440-441, 481-482, 492-493, 499, 533, 539, 546-547, 556, 561-562, 571, 579, 581, 610, 627-628, 630-631, 633, 637, 643, 679-680, 750 test, 12, 493 Earnings before interest and taxes, 5, 12, 547, 561, 571 Eastern Europe, 243, 359, 407, 422, 498 E-commerce, 644 Econometric models, 357 Economic analysis, 125-126, 133, 588, 612 Economic cost, 267 Economic crises, 25, 37, 361, 519 Economic environment, 135, 260, 547 Economic exposure, 6, 14, 297, 327-328 Economic factors, 339, 455, 487 Economic forces, 117, 336, 346 Economic growth, 33, 38, 42, 46, 49, 51, 139, 169, 777 172, 182, 360-361, 498, 502-503, 513, 515, 519 in developing countries, 38, 46, 502-503, 519 rates, 38, 42, 49, 139, 172, 182, 360-361, 502 Economic integration, 41, 389 effects of, 41 European Union, 41 global, 41, 389 Economic models, 1, 329, 335, 353 econometric, 335 Economic policy, 51, 85, 146, 366, 481, 506, 513 Economic recovery, 503 Economic variables, 347, 357, 498, 540 Economics, 24, 32, 48, 51, 85, 112, 115, 170, 186, 218, 230, 235, 253, 270, 294, 328, 353, 366-367, 424, 435, 445, 460, 466, 492-493, 500, 541-542, 574, 629, 638-639, 688, 698, 720, 723 Economies of scale, 324-325, 327, 550 Economist Intelligence Unit, 513, 539 Economy, 1, 8-9, 15, 19-21, 26, 33, 35-36, 39, 41-42, 48, 50-52, 74, 134, 136-138, 141-144, 146, 155, 157-158, 171-173, 175-177, 181, 186, 252, 261, 294, 342, 347, 356, 358, 361-362, 366, 372, 387, 389-390, 395, 420, 480, 487, 501, 525, 527-528, 537, 547, 549, 554, 644, 667, 687, 706, 710, 741 team, 537 Ecuador, 63, 148-149, 173, 178, 185, 207, 517-518 currency of, 149, 173, 185 Education, 1, 9, 19, 37, 53, 87, 117, 125, 132, 143, 147, 187, 219, 255, 257, 259, 295, 329, 369, 415, 447, 495, 497, 543, 575, 577, 613, 641, 669, 699, 743 EEC, 6, 20 European Economic Community, 6, 20 Effective interest rate, 402 Efficiency, 10, 23, 227-228, 232, 250, 500 Egypt, 63, 148, 273, 417, 421, 427, 477, 518, 541, 695 El Salvador, 39, 148-149, 173, 518, 520, 540 Elasticities, 316 Elasticity of demand, 325 price, 325 Elections, 39, 512, 528 Electronic equipment, 88 Eligibility, 656, 666 Eligibility requirements, 656, 666 E-mail, 674, 695 Embargo, 500-501 Embargoes, 117, 515 Emerging economies, 19, 43-44, 158, 204, 386, 493, 738 gross domestic product (GDP) and, 19 Emerging markets, 6, 23-24, 35, 43-44, 46, 49, 66, 106, 114, 131, 266, 274, 284, 355, 359, 378-379, 398, 404-405, 419-422, 426-429, 431, 434, 436, 439-441, 443-444, 456, 459, 477-479, 481-482, 484, 490-493, 511, 529, 532-533, 541-542, 661-662, 699, 706, 738, 741 characteristics of, 477 franchising, 49 inflation, overview of, 23 pricing, 493, 511, 541-542, 741 trends in, 23 Emerging stock markets, 419, 443 emphasis, 41-42, 630 Employees, 29-32, 40, 50, 55, 301, 310, 577, 616, 633 Employment, 12, 27, 38, 45-46, 50, 175, 356, 660 full, 175 EMS, 6, 173, 176, 178-182, 185, 355-356, 359, 364 European monetary system, 6, 173, 178-179, 185, 355 Endowments, 9, 13, 40, 377 England, 26, 55, 160-161, 227, 260, 274-275, 536 English, 33, 186, 432-433, 536, 662 Enhancement, 458, 752 Enron, 30 Entities, 15-16, 442, 656, 744 Entrepreneur, 613-614, 637 Entrepreneurs, 14, 614 Environment, 4, 31, 39, 44-45, 135, 238, 260, 312, 316, 319, 322, 422, 426, 445, 469, 497, 513, 515, 520, 539, 547, 670, 673, 697 natural, 520 Environmental law, 520 Equilibrium, 12, 115, 161, 163-165, 167, 169-170, 186, 187, 194, 215, 252-253, 258, 282, 292, 778 311-312, 314, 339, 342-345, 347, 356, 413, 423, 445, 447-493, 552, 574, 597, 614-615, 631, 694 long-run, 163, 343-345, 347, 455, 475 market, 12, 115, 161, 163-164, 170, 186, 187, 194, 215, 252-253, 258, 292, 311-312, 314, 339, 342-343, 356, 413, 423, 445, 447-460, 462-463, 466-493, 552, 614-615, 631, 694 short-run, 342, 345 Equilibrium exchange rate, 161, 167 Equilibrium price, 347 Equity, 1, 3, 5-7, 13, 17, 32, 35, 40-41, 43-44, 59, 91, 99, 107, 112, 124, 132, 158, 161, 186, 230, 232, 329, 341, 353-354, 359, 370-372, 384-385, 389-390, 392, 399, 410, 413, 415-445, 448-453, 456-460, 462, 465, 467-473, 475-477, 479-484, 486-493, 499, 503, 528, 534, 537, 539, 544-546, 548-551, 555-557, 561-562, 569-573, 577-585, 589, 592-594, 606-612, 613, 615-617, 621-622, 627-629, 633-636, 638, 671 defined, 6, 424, 442, 450, 469-470, 546, 571, 580, 610 internal, 1, 5, 13, 43, 370-371, 441-442, 633 international equity market, 458 issuing, 6, 13, 161, 399, 410, 413, 432, 440, 443, 545, 550-551, 571, 579, 615, 628-629, 635 Equity capital, 392, 399, 416, 448, 459, 467, 471, 473, 476-477, 486, 488-489, 492 Equity financing, 370, 415-445, 537, 551 Equity investment, 5, 449, 467, 479, 489, 491, 503, 534 Equity markets, 43, 107, 353, 359, 370, 413, 416, 419, 434, 441, 444, 448, 450, 456-458, 460, 465, 476, 481, 484, 486, 490, 492-493, 628 Eritrea, 148 ERM, 179, 182, 274-275, 357-359, 364, 387, 500 Exchange rate mechanism, 179, 274, 357, 364 ERM II, 182 Errors and omissions, 15, 128, 143-144 Estonia, 148, 171, 182, 417, 422, 427, 518 ETC, 226, 256 EU, 6, 21, 38-39, 42, 50, 171, 175, 178, 182-185, 388, 424, 609 Euro, 6-7, 15-16, 39, 57-58, 60, 62-69, 76, 81-82, 84-85, 88, 98, 110, 113-115, 120, 141, 145, 147-150, 153, 156-157, 162-165, 168, 172-173, 175, 178, 180-186, 188-189, 193, 196, 198, 201-203, 208, 211, 216-217, 224-225, 227, 232, 236-239, 242-243, 252, 267, 272-277, 284, 288-289, 291, 293, 298-299, 302-309, 341, 348, 357, 361, 365, 385, 399-400, 408-412, 434, 452, 470, 483, 558-562, 565-568, 570, 573, 602-606, 612, 637, 674, 693-694, 697, 700, 702-704, 706-707, 709-710, 712-716, 730-731, 733, 737, 740, 744, 750, 752-754, 756-760, 762-768, 770 international monetary fund, 65, 147-148, 156, 276-277, 293, 483 Maastricht Treaty, 6, 178, 181-182, 185, 357 Eurobonds, 145, 180, 374, 379, 381-383, 388, 392, 401, 410-412, 749 Eurocredit, 6, 395, 397, 399, 412 Eurocurrencies, 180 Eurocurrency, 6, 388, 395, 434, 501 Eurocurrency market, 6, 388, 395 Eurodollars, 196 Euromoney, 61, 87, 115, 370, 386-387, 513, 539, 678, 698 Euronext, 417, 421-423, 425, 427, 434, 436, 445, 700 Europe, 23, 31, 35-36, 38-40, 55, 65, 67, 75-76, 88, 113, 141, 168, 171-172, 178, 180, 182-185, 203, 243, 248, 272, 289, 298, 310, 355, 357, 359, 363, 372, 383, 386, 388, 403, 407, 410, 412, 421-422, 424, 427-428, 430, 434-435, 437, 443, 456, 483, 486, 491, 498, 501, 506, 543, 557-558, 560, 570, 658, 664, 750, 757 monetary system, 171, 178, 185, 355 European Central Bank, 39, 76, 162, 182 European Commission, 39 European Community, 178, 357 European Economic Community, 6, 20 European Monetary System, 6, 149, 151, 173, 178-179, 185, 355 European Monetary Union, 6, 141, 147-148, 359 European option, 6, 711, 730, 733 European Parliament, 39 European terms, 84 European Union, 5-6, 20-21, 38, 41, 49, 63, 65, 76, 131, 171, 186, 361, 381, 388, 392, 394, 424, 455-456, 609, 710 EU, 6, 21, 38, 171, 388, 424, 609 European monetary union, Maastricht Treaty, membership, 76 regional trade agreements, 21 European Union (EU), 6, 21, 38, 171, 388, 424, 609 Euroyen, 412 Evaluation, 14, 327, 362, 366, 391, 490, 578, 633, 684 evidence, 43-46, 50-52, 74, 115, 143-144, 146, 164, 186, 201, 209, 215, 218, 219, 232, 235, 237-239, 241, 245-246, 248, 253, 275, 294, 303, 315, 328, 329, 334, 339, 343, 345, 347-348, 350-351, 354, 357, 362, 366-367, 376-377, 407, 409, 413, 431, 444-445, 469, 485-486, 488, 490, 492-493, 511, 520, 541-542, 633-635, 638, 647-648, 655, 667, 682-683, 698, 749-750, 771 supporting, 683 Excess demand, 160, 165, 168, 467 Excess supply, 57, 160, 167, 184 Exchange, 1-16, 23-24, 29, 36-37, 41-42, 49, 53-85, 87-115, 117, 119-124, 130, 133, 135, 140, 142-145, 147-186, 187-201, 203-209, 213-218, 219-253, 256, 259-294, 295-328, 329-367, 374, 378, 380, 386, 391, 393, 401, 403, 405, 408-410, 412, 416-433, 435-439, 441-443, 448-452, 459, 466, 469-471, 489-491, 493, 498-499, 502-503, 505, 513-515, 517, 519, 525, 527, 536-537, 547, 554-556, 558, 560, 569, 573, 583, 585-589, 591-592, 594-596, 602-605, 609, 611, 613-622, 624-625, 629-639, 646, 648, 651, 653-655, 663-664, 672-677, 679, 686-691, 693-696, 698, 699-704, 706-714, 716-741, 743-748, 751-756, 758-759, 763-771 Exchange rate, 1-2, 4-16, 37, 49, 62, 64-65, 68-71, 73-75, 80-82, 84-85, 88-97, 99-101, 103-106, 110-115, 121-122, 124, 130, 140, 143, 147-186, 188-192, 203-206, 208-209, 213-217, 220-228, 230, 232-237, 239-242, 245-247, 249-253, 256, 260, 263-294, 295-309, 311-320, 322-328, 329-367, 374, 386, 403, 405, 409-410, 412, 435, 449, 451-452, 466, 470-471, 489-491, 493, 513-515, 525, 527, 554-555, 558, 560, 569, 573, 583, 585-587, 592, 594-596, 602-605, 611, 616-622, 624-625, 630-633, 635, 637-638, 686, 689-690, 694-695, 698, 699, 703-704, 706-709, 711-713, 716-720, 722-723, 725-730, 732-734, 736-741, 743, 745, 752-756, 759, 763-765, 767-770 appreciation, 1, 11, 13, 80-82, 84, 93, 100, 110, 112, 158, 164-165, 205, 223-224, 235-237, 239-241, 245-246, 251-252, 272, 274, 276-277, 281, 286-293, 297, 299-301, 303-306, 308-309, 312-313, 318-320, 322-324, 326, 343, 346-347, 356, 361, 363, 374, 386, 409, 449, 471, 525, 573, 587, 594, 596, 605, 611, 630, 719, 728, 738 depreciation, 5, 8-9, 11, 13, 80-82, 84, 89, 110, 113, 115, 140, 177, 234-236, 240, 245, 251-252, 272, 274, 286, 289-293, 297-300, 303-306, 308-309, 315-320, 322-325, 327, 333, 342-344, 346-347, 356, 358, 362-364, 560, 573, 592, 594-596, 611, 694, 707, 709, 719 determination of, 13, 260, 340, 690 fixed, 2, 4-5, 7, 9, 13-16, 80, 88, 94, 97, 124, 130, 143, 147-150, 153-154, 158, 160-161, 165-171, 173, 176-177, 179, 182, 184, 205, 242, 246, 251, 267-268, 278, 286, 291, 293, 305-306, 309, 317-318, 320, 322, 342, 354-355, 358, 360, 374, 386, 410, 412, 515, 560, 622, 635, 686, 694-695, 717, 737, 743, 752, 754-755, 763-764, 767, 769-770 flexible, 6, 80, 84, 88, 150, 153, 158, 162, 183, 186, 342, 360 Exchange Rate Mechanism, 175, 179, 181, 274, 357, 364 Exchange rate mechanism II, 175 Exchange rate systems, 147-186, 360 Bretton Woods Agreement, 166 currency board, 148, 150-151, 153-154, 171-173, 186, 360 European monetary system, 149, 151, 173, 178-179, 185 fixed, 147-150, 153-154, 158, 160-161, 165-171, 173, 176-177, 179, 182, 184, 360 gold standard, 165, 186 Exchange rates, 1, 3-5, 7-8, 13-16, 24, 36, 42, 49, 54, 58, 62, 64-69, 71-74, 79-82, 84-85, 87-89, 91-94, 98, 101-102, 108-111, 114-115, 117, 124, 133, 135, 142, 147, 149-154, 158, 162, 164-166, 170, 173-174, 178-181, 184-186, 187, 189-195, 198-200, 204, 206, 208-209, 213-217, 222, 224, 226-227, 232, 235-236, 238-241, 246, 249-251, 253, 256, 259-294, 295, 297, 301, 303, 305-307, 310, 316, 320, 322-328, 329-330, 332-333, 335-337, 339-355, 358, 360, 362-364, 366-367, 408-409, 435, 450, 469, 471, 502, 547, 555, 585, 587-589, 591-592, 602, 604-605, 611, 614, 617-621, 624, 630-633, 635-638, 672-673, 675, 686, 688-690, 693, 696, 701, 707, 709-711, 719-722, 724-725, 728, 730-735, 737, 739-741, 747, 759, 765-767, 769-770 accounting and, 633 Argentina and, 158 Brazil, 87, 149, 158, 178, 187, 204, 266, 327, 435 central banks and, 147, 164 competition and, 266, 316 Costa Rica, 178 determination of, 13, 102, 135, 142, 198, 260, 340, 690, 696 forecasting, 3, 16, 115, 226, 232, 250-251, 253, 294, 320, 322, 329-330, 332-333, 335-337, 339-355, 358, 360, 362-364, 366-367, 547, 585, 611, 631, 675 interest rates and, 115, 190, 193-194, 204, 208-209, 214-215, 275, 330, 335, 339, 344, 588, 675, 747, 759, 765, 767 International Monetary Fund, 36, 65, 147, 154, 166, 276-279, 293, 332, 345, 502, 741 marketing and, 323 U.S dollar and, 200, 224 Exchanges, 4-5, 7, 10, 15, 24-25, 41, 54, 56-57, 67, 73, 87, 179, 206, 268, 294, 416-432, 435-436, 439, 443, 448, 700-701, 711, 716, 739, 765 Ex-Im Bank, 6, 660-661, 667 Expansion, 2, 31, 162, 363, 387, 441, 505, 558, 577 expect, 10, 70, 89, 93, 98-99, 102, 106, 171, 174, 217, 227-228, 231, 234, 244, 246, 248, 250-252, 266-267, 274, 281, 292, 298, 316, 318, 327, 330, 333, 342, 344, 349, 456, 474, 480, 491, 510, 568, 583-584, 689, 698, 734, 763-764 Expectations, 6, 13, 29, 89, 138, 162-164, 175, 227, 235-236, 246-247, 249-251, 253, 258, 330, 341, 356, 366, 375-376, 396, 401, 441, 445, 466, 468-469, 674 expected loss, 228, 230, 232, 251 Expected real interest rate, 7, 331, 344, 589 Expected return, 2, 6, 11, 14, 139, 201, 225, 228-231, 234-235, 241, 249-251, 257-258, 333, 352, 448, 452, 457-462, 464-465, 467-470, 472-473, 478-479, 481, 489-492, 526, 588 Expenditures, 2, 5, 7-8, 10, 12, 16, 125, 135-139, 143-144, 157, 278, 282, 346, 385, 546-549, 559, 561-562, 569, 571, 573, 579, 597, 609, 627, 630-632, 634, 636, 664, 677 defined, 546, 571, 664 Expenses, 5, 376-377, 396-397, 547-548, 550, 560, 573, 627, 634-635, 654, 678, 681-682, 685, 698, 735, 744 Experience, 16, 37, 44, 89, 94, 131, 144, 153, 171, 181, 218, 243, 246, 260, 272, 291, 297, 301, 317, 326, 330, 347, 355, 358, 376, 394, 433, 439-440, 452, 509, 513, 571, 601, 610, 614, 622, 624, 627, 632, 648, 659, 719, 741, 752, 771 expertise, 304, 352, 365, 433, 442, 577, 657, 680 Explanations, 241, 244, 246, 491 Explosion, 58, 78 Export-Import Bank, 6, 642, 660, 667 Export-Import Bank of the United States, 6, 660 Exporting, 27, 43, 96, 114, 296-298, 312-313, 316, 324, 364, 452, 455, 501-502, 546, 557, 570, 643, 645, 647, 651-652, 655, 661-662, 665-666, 683, 718, 740 agents, 643 OPEC, 501-502 Exports, 2, 6-7, 11, 13, 15, 21-22, 49, 88, 103, 118-119, 124-126, 129, 132, 135, 142-143, 145, 149, 169, 172, 177, 266, 268, 299, 302, 304, 315-318, 320, 322-323, 346-347, 373, 455, 498, 501-502, 511, 513-515, 543, 546, 557, 569-572, 642, 647, 655-667, 688, 698 China, 15, 21-22, 49, 129, 149, 266, 316-317, 660-661, 667 financing, 6-7, 13, 15, 373, 557, 571, 642, 647, 655-667, 688 nature of, 88, 323, 513, 658 payment methods, 642 sanctions, 501 Expropriation, 7, 13, 497-498, 506-511, 516, 520, 527-528, 531-536, 539-541 External debt, 362, 377, 498 Externalities, 534 Extortion, 532 EXW, 644 F Factors of production, 43, 143 Failure, 32, 77, 80, 198-199, 202-203, 218, 238, 269, 280, 355, 359, 393-394, 503, 533-534, 667 Fair value, 347 fairness, 513 Family, 121, 233, 371, 538, 710 Fannie Mae, 26 FAST, 100, 104, 168, 356, 364, 425, 441, 577, 747, 761 Favors, 515 FDI, 7, 29, 34, 45-46, 48, 50-51, 132, 134, 161, 520, 532-534 Feature, 47, 78, 91, 93, 167, 170, 172, 352, 385, 421, 452, 511, 537 Federal budget, 137 Federal Deposit Insurance Corporation, 391 Federal funds rate, 156 Federal government, 404, 499, 520, 661 Federal Reserve, 6-7, 9, 26-27, 51, 76, 78, 85, 115, 134, 140, 144, 156, 159, 163, 166, 172, 203, 218, 386, 392, 501, 521, 656, 667, 747 inflation and, 172 interest rates and, 27, 115, 747 Federal Reserve Bank, 51, 76, 85, 115, 144, 218, 521, 667, 747 Federal Reserve System, 7, 76, 85, 501 feedback, 113 Fields, 39, 50, 497, 537 Fiji, 148, 518 Final goods and services, 8, 130, 143, 284 Finance, 2-3, 6, 9-10, 13, 16, 36-37, 39, 45, 47, 49, 51, 85, 100, 115, 123, 127, 130, 134, 137, 139, 141, 157-158, 165, 168-170, 172, 179, 183, 186, 187, 202, 204, 206, 213, 218, 229, 233, 238, 253, 270, 288, 294, 327-328, 353, 357-358, 361, 366-367, 370-372, 374, 378, 386, 398, 408-410, 413, 424, 429, 433, 440, 442, 444-445, 448, 459-460, 466, 475, 478, 480, 492-493, 503, 513, 525, 528, 532, 536-537, 540-542, 544, 546, 550-551, 571, 574, 580, 612, 627-629, 631-632, 638-639, 643-644, 647-648, 655-657, 660-662, 666-667, 686-687, 692-693, 695-696, 698, 704, 706, 711, 741, 771 accounting and, 612 capital structure, 544, 550, 639 global capital markets, 372 internal sources of funds, 370 summary of, 644 Financial account, 118, 127, 142 Financial Accounting Standards Board, Financial assets, 118, 180, 229, 268, 466 Financial centers, 55-56, 83, 196, 388, 391, 413 Financial condition, 396, 609 Financial crises, 39, 413 Financial crisis, 3, 5, 20, 25, 32, 39, 42-43, 49, 51-52, 73, 81, 87, 106, 131, 140, 155-156, 183, 201-202, 218, 244, 276-277, 361-362, 372, 386, 393-395, 398, 419, 440, 475, 486, 498, 632, 661, 667, 678, 699, 727, 738, 747, 750, 769 banks in, 393, 398, 678 investments and, 25 Financial globalization, 43, 50-51, 146 Financial institutions, 3, 6-7, 10, 24-27, 32, 36, 44, 54-55, 58, 60, 75-76, 78, 106, 128, 155-156, 159, 168, 171, 176, 184, 202-204, 243, 248, 329, 343, 377, 379, 381-382, 386, 391, 394-395, 400, 410-411, 421, 432, 498, 656, 661, 735, 744 Financial instruments, 8, 40, 393, 412, 424, 613 Financial intermediaries, 7, 159, 198, 370, 377, 399, 433, 550, 657, 660, 754-755, 757, 761, 768 Financial issues, 710 Financial management, 1, 19, 39-40, 47, 50, 53, 87, 101, 117, 147, 187, 219, 255, 257, 259, 295, 329, 369, 413, 415, 445, 447, 493, 495, 497, 543, 575, 577, 589, 613, 638, 641, 669, 699, 743 capital budgeting, 1, 497, 543, 577, 589 case study, 613 currency risk, 147, 613 Financial markets, 1, 9, 14-15, 23, 26, 37, 47, 49, 67, 85, 89, 112, 179, 183, 186, 206, 225, 244, 251, 348, 357, 359, 362, 386, 392, 400, 435, 445, 472, 489, 498, 511, 541, 596, 614, 628-629, 631, 637, 649, 652, 666, 750, 768 financial reporting, 9, 33, 609-610, 612 Financial reports, 33 Financial risk, 11, 514-515, 615, 638 Financial risk management, 11, 615, 638 Financial services, 36, 39, 42, 45, 125, 378, 388 Financial systems, 33 Financial Times, 65, 99, 197, 200, 212, 232, 472 Fines, 423, 647, 670 Finland, 33, 148, 182, 284, 358, 416-417, 422, 427, 455, 483, 518 GDP, 284, 422 Fire, 26, 170, 203, 228, 233, 304-305, 693, 695, 724-725, 740, 747 risk of, 693, 747 Firms, 7, 10, 12-14, 19-21, 23, 25, 27, 29-33, 36, 40-41, 43-46, 49, 51, 56-60, 75, 83, 101, 117, 138, 141, 156, 158, 169-170, 178, 182, 187, 202, 226, 242, 260, 267-268, 282, 288, 295, 297, 301, 304-306, 309, 315-320, 322-327, 329, 331, 338, 347, 370-372, 374, 377, 381-382, 385-386, 396, 399-400, 407, 413, 418-419, 428, 430-432, 434, 439-442, 444-445, 448, 452, 454-456, 471, 473-474, 482, 485-489, 491, 493, 498, 500, 519, 532, 540, 546, 552, 556, 574, 577-578, 609-610, 613-616, 622, 627-629, 634-639, 643, 647-648, 653, 655-656, 658, 660-662, 671-672, 680-681, 684, 686-688, 693, 695, 697, 699-701, 727, 738, 743, 749-750, 755-757, 759-760, 762, 770 case study, 613 First-mover advantage, 555 Fiscal policy, 37, 182, 358, 513 Fixed assets, 374 Fixed costs, 317-318, 320-322, 547, 560, 634, 680, 683 Fixed currency, 13 Fixed exchange rate system, 13, 80, 154, 165-166, 171, 176, 184, 686 Fixed exchange rates, 88, 124, 147, 165-166, 170, 179, 184, 246, 358, 701 Flat tax, 205 Flexibility, 154, 166, 173, 185, 399, 437, 655, 673 Flexible exchange rate system, 88 Floating currency, 7, 10, 152, 361 Floating exchange rate system, 5, 151, 161, 185 Floating exchange rates, 147, 149, 153, 164, 170, 184, 355 Flood, 355, 366 FOB, 644, 666 Food, 30, 125, 301, 408, 647 production, 30, 647 footnotes, 634-635 Forecasting, 3, 16, 115, 226, 232, 250-251, 253, 294, 298, 320, 322, 329-367, 547, 549, 558-561, 563, 565-566, 577-578, 585-586, 611, 631, 675 cash disbursements, 675 cash receipts, 675 sales, 16, 320, 322, 343, 346, 355, 364, 547, 558 Forecasts, 13, 17, 115, 187, 226-227, 236, 245, 250, 275, 318, 327, 329-330, 336-339, 343, 347-348, 354-355, 362-364, 366, 440, 476, 492, 506, 513, 516, 544, 547, 549, 554, 556-562, 565, 570, 577-578, 585-586, 588-590, 592, 594-597, 599, 605, 611, 618, 621-622, 630-631, 673-675, 677, 738, 749-750 Foreign aid, 118, 121 779 Foreign bonds, 7, 121, 134, 158, 377, 379-381, 388, 410 Foreign branch, 7, 390-391, 411, 653 Foreign competition, 42, 196, 266, 317 Foreign corporation, 499 Foreign direct investment, 7, 29, 34, 41, 50-51, 132, 134, 141, 161, 520, 532, 542, 554 China, 34, 51, 141, 161 government intervention, 161 greenfield investment, 50 mergers and acquisitions, 34, 50 Foreign exchange, 4-12, 15, 53-85, 87-88, 95, 97, 99-101, 105-107, 112, 114-115, 117, 119-123, 140, 144-145, 148-149, 151, 156-165, 167-169, 175-176, 178, 185-186, 187-190, 192-194, 196-198, 201, 203-204, 207-209, 215-218, 219-253, 264, 267, 270-272, 275, 280-281, 284-286, 292, 301, 304, 306, 318, 323, 325-327, 329, 337, 351-354, 359, 363, 365-367, 374, 391, 393, 401, 412, 423-424, 439, 441, 443, 498, 517, 519, 537, 556, 583, 585, 592, 613-616, 621-622, 629, 631-639, 646, 648, 651, 654-655, 672, 674, 676-677, 679, 686-687, 689-691, 696, 699-700, 708, 713, 716-718, 725, 727, 733, 737-740, 755, 771 cash flows and, 301, 585 Foreign exchange brokers, 7, 55, 57 Foreign exchange markets, 55, 57, 60, 85, 88, 100, 112, 114-115, 117, 148, 158, 162, 165, 196, 203, 215, 219, 239, 253, 271-272, 275, 281, 284-286, 292, 301, 351-352, 366-367 currency swaps, 215 forward rates, 88, 114-115 spot rates, 88, 114, 203 Foreign exchange risk, 11, 87-88, 95, 97, 100-101, 105, 187-190, 193-194, 198, 207, 209, 216-217, 219-220, 225, 228, 232, 241, 251, 267, 270, 304, 306, 318, 323, 325-327, 329, 374, 412, 585, 613-616, 629, 633, 636-639, 646, 674, 679, 689-691, 696, 717, 725, 738, 755 Foreign subsidiary, 8, 316, 318, 327, 373, 543, 556-557, 564, 571-572, 677, 686 Forfaiting, 7, 12, 655, 657-658, 666 Forward contract, 3-4, 7-8, 12-15, 94-99, 102-107, 110, 114, 188, 190, 195, 207-209, 216, 221, 225, 227, 230-232, 235, 243, 250-252, 386, 407, 614, 617, 619-621, 700-701, 704, 710, 717-720, 722, 733-736, 738-740, 769 Forward contracts, 7, 57, 65, 75, 88, 94-95, 98, 100-107, 109-110, 114, 170, 185, 202, 207, 215, 219, 221, 232, 243, 248, 326, 374, 408, 410, 614-615, 620-621, 638, 695, 699-701, 704, 714, 730, 735, 739, 743, 746, 765, 768-770 Forward discount, 110-111, 114, 237-238, 240-242, 244, 251-253, 333, 350, 616, 636-637 Forward exchange rate, 7, 95, 114, 188-192, 206, 208, 214-217, 230, 251, 293, 386, 704, 733, 739, 765 Forward market, 3, 8, 14, 87, 95, 98-106, 108, 110, 114, 187, 190, 192, 194, 198, 203, 208, 215-216, 221-222, 224-226, 230-231, 233-234, 238, 240-242, 245, 248, 250-252, 333, 335, 338, 348, 352, 405, 471, 592, 616-617, 619-621, 636, 689, 695, 698, 700, 704, 733, 765-767, 769 Forward premium, 8, 88, 110, 114-115, 192-193, 215-217, 234-240, 245, 247, 251-252, 287, 332-333, 352, 363, 471, 616 Forward rates, 8, 15, 88, 110, 114-115, 187, 189, 201, 213, 227, 231, 235, 238, 247, 250, 256, 329-330, 335, 337, 357, 406, 408-409, 541, 592, 614, 618, 620, 765-766 Foundations, 264, 294, 578 fractions, 8, 65, 258, 457, 460 Fragmentation, 426 France, 6, 19, 21-23, 32-33, 35, 38-39, 55, 98, 120, 130, 137, 145, 148, 152, 166, 168, 181-182, 204, 208, 248, 262, 284, 293, 302, 332, 345, 357, 387-390, 393, 417, 422, 427, 451-453, 455, 458-459, 476, 483, 485-486, 497, 500, 517-518, 536, 637-638, 642, 644, 697, 770 economies of, 459 Franchising, 8, 27, 29, 49 contracts, 8, 29 relationship, 49 fraud, 30, 392, 394, 532, 657 780 Freddie Mac, 26 Free markets, 47 Free on board, 644 Free trade, 1, 8, 12, 20-21, 41-42, 44, 47, 139, 178, 520, 761 Freedom, 176, 351 Frequency, 8, 13, 56, 59, 90-91, 113, 152, 186, 201, 246, 251, 316, 325, 328, 343, 366, 425, 475, 512 Fronting loan, 8, 686-687, 696-697 Full employment, 175 Fund, 3-4, 6, 8, 10, 12, 15-16, 26, 31-32, 36, 38, 40-41, 52, 54, 56, 58-59, 65, 75, 77, 118, 146, 147-148, 154, 156-157, 166, 244, 276-279, 293, 332, 336, 345, 355, 359, 390-391, 413, 419, 449-450, 459, 464, 476, 478, 481, 483-484, 487, 491, 502, 505, 534, 537, 541, 555, 616-617, 633-635, 637, 672, 675, 679, 697, 741, 747, 749 Fundamental disequilibrium, 166 Fundamental risk, 231 Futures contract, 2, 206, 420, 700-704, 706-709, 715-716, 739-740 Futures contracts, 7-8, 10, 206, 631, 699-701, 703-704, 706-707, 709-710, 715, 739 FX swap, 218 G GAAP, 8, 432, 440-442, 609-610, 612 Gambling, 428 GATT, 8, 20-21, 38, 49 General Agreement on Tariffs and Trade, 8, 20 GDP, 8, 19, 21-22, 24, 34, 59, 130-131, 134-136, 143, 163, 173, 183, 283-284, 335, 343, 347, 361-362, 365, 386, 419-422, 429, 443, 487, 498, 514-515, 521, 525 General Agreement on Tariffs and Trade, 8, 20 GATT, 8, 20 Generally accepted accounting principles, 8, 432, 609 GAAP, 8, 432, 609 Generally accepted accounting principles (GAAP), 8, 432, 609 Geography, 445 Georgia, 148, 518 Germany, 6, 21-22, 25, 31-33, 35, 39, 44, 56, 62, 64, 77, 80, 102, 130-131, 137, 145-146, 148, 152, 164-165, 182-184, 262, 268, 284, 293, 304, 332, 345, 357-359, 376, 388, 393, 417, 419, 421, 426-427, 437, 451-453, 455-456, 458-459, 478, 486, 517-518, 546, 577, 628, 657, 667, 693-694, 709 Ghana, 148, 169, 441, 518 Gifts, 16, 118, 121-122, 125-126, 144 Global bond market, 378, 410-411 Global capital market, 9, 480-481, 490 Global Depositary Receipts, 431, 434, 443 Global economy, 19, 42, 501 Global financial crisis, 20, 25, 32, 39, 43, 49, 73, 87, 106, 131, 183, 218, 361, 372, 386, 393-394, 398, 475, 498, 661, 678, 699, 738, 747, 750, 769 causes of, 386 Global recession, 25, 126, 295, 661 Global Trend, 21 China, 21 Globalization, 1, 8, 19-52, 54, 56, 134, 146, 299, 383, 392-393, 407-408, 410, 422, 436, 472 markets, 1, 8, 23-24, 26-27, 29, 31, 33, 35, 37-38, 40-44, 46-47, 49-50, 56, 383, 392, 407, 410, 422, 436, 472 summary, 1, 49, 410 Goals, 16, 29, 36, 39, 158, 175, 614, 644, 672, 696 Gold, 2, 8, 12, 118, 128, 143, 156-157, 165-167, 173, 184, 186, 268, 286, 361, 441, 472, 499, 519-520, 545, 701 Gold standard, 8, 165, 186, 286 Goods, 2-16, 19-21, 23, 38, 42, 49-50, 54, 56, 62, 72, 80, 87, 99, 114, 117-120, 122, 124-127, 129-130, 132, 136-137, 139-140, 142-143, 145, 161, 165, 167, 169-170, 176-177, 208, 260-261, 263-270, 272, 275, 280-284, 286, 288, 290-292, 306-307, 310, 313, 317-322, 324, 326-328, 330-331, 342, 346-347, 361, 460, 511, 514, 525, 547, 549, 557, 566-567, 569, 571, 573, 585, 599, 602, 629, 632, 642-648, 650-654, 656-658, 660, 663-666, 670-671, 673, 678, 681-686, 688, 691, 693-694, 696, 698, 735 basket of, free, 2, 4, 6, 8-9, 12, 14, 20-21, 23, 42, 49-50, 139, 460, 511, 547, 549, 557, 571, 573, 599, 602, 644, 678, 686 intermediate, 324, 547, 557, 566-567, 569, 585 normal, 7, 12, 14-15, 653 private, 7, 9, 11-14, 124, 126-127, 129-130, 136-137, 140, 143, 145, 161, 170, 176, 347, 644, 647, 660, 666 public, 7, 13, 136-137, 525, 664, 698 substitute, 290 Government, 1-8, 11-15, 20, 26-27, 42, 44, 48-49, 74, 77, 80-81, 117-118, 121, 126, 128-130, 135-144, 148, 155-157, 159-163, 168-173, 181, 183-185, 189, 196, 204-207, 210, 215, 217, 247-248, 252, 275, 292, 331-332, 347, 355-356, 358-359, 362, 375, 378-379, 387, 389-390, 392, 397, 402-404, 407, 420-423, 434, 440, 448, 472, 480, 497-499, 502-508, 511-517, 519-526, 530-534, 536-540, 550, 553-554, 557, 561, 563-565, 567-571, 602, 623-624, 630-631, 636, 645, 648, 654, 657-658, 660-662, 667, 672, 678-679, 683-684, 686-687, 695, 701, 706, 744, 748, 750-751 Bretton Woods Agreement, country risk, 4, 206-207, 497-498, 511-514, 516-517, 524, 526, 530, 539-540, 658 foreign direct investment, 7, 141, 161, 520, 532, 554 franchising, 8, 27, 49 global financial crisis, 20, 49, 183, 498, 661, 678, 750 intervention, 12, 15, 148, 159-163, 184-185, 525, 631 loans from, 502, 687 state-owned enterprises, 420 tariffs, 1, 8, 20, 42, 117, 139-140, 292, 684 Government agencies, 130, 407, 532 Government intervention, 161 Government policies, 140, 170, 701 Government purchases, 135, 137, 143 Government regulation, 422 Government regulations, 6, 292, 744 Government restrictions, 2, 148, 672 Government securities, 402 Government spending, 143, 275, 347, 502 Grants, 9, 16-17, 32, 37-38, 118, 126, 144, 176, 385, 657 intergovernmental, 16 Graphs, 85, 287, 331, 336, 348, 465 Great Britain, 165, 242, 673 Great Depression, 36, 165-166, 186, 662 Greece, 39, 82, 141, 148, 182-183, 284, 298, 417, 421, 427, 455-456, 481, 498, 506, 518, 750 Greenfield investment, 50 Greenfield investments, 29 Gross domestic product, 8, 19, 22, 59, 130, 135, 143, 181, 283, 335, 386, 419, 487, 498 growth in, 19, 419 interest rates and, 143, 335 nominal, 335 real, 283, 335, 498 Gross national income, 8, 135-136, 143, 346 definition of, 135-136 Group, 3, 6, 9, 11-12, 15, 17, 24, 27, 32-33, 37-38, 41, 44, 70, 85, 120, 144, 150, 290, 356, 381-382, 389, 396, 400, 422-423, 426, 430, 432, 483, 504, 513-515, 520, 528, 530, 532, 539, 542, 588-589, 633, 635, 658, 700-702, 704, 706, 710, 715, 741, 747 groups, 3, 9, 78, 147, 387, 426-427, 497, 512, 515, 532-533, 644 development of, 9, 533 Growth rate, 157, 186, 365, 549, 573, 576, 597-598, 601, 746-747 Growth strategy, 23 Guatemala, 148, 518 Guidelines, 1, 61, 394, 398, 503 H Haiti, 148 handouts, 46 Hard currencies, 688, 697 Hard currency, 181, 662, 664 Hazards, 512 Hedge funds, 8, 26, 40-41, 56, 58-60, 227, 242, 354-355, 699-701, 734, 747 Hedgers, 634, 702 Hedging, 9, 11, 87, 94-101, 114, 187, 207-209, 232, 234-235, 239, 251, 260, 323, 326, 338, 362, 394, 405-407, 413, 585, 613-639, 688-689, 699, 706-709, 716-720, 722-723, 725, 727, 735, 738-740, 756-757, 765, 771 insurance, 9, 11, 232, 362, 632, 688, 718, 723, 725, 727, 735, 739-740 Hierarchy, 537 Holding company, 31, 422 Home country, 45, 123, 142, 345, 432, 439, 500, 679-682 Home currency, 11, 327, 347, 489, 533, 547, 586, 601-602 Honduras, 148, 518 Hong Kong, 35, 55-56, 63, 66, 78, 87, 147-148, 150, 171-172, 185-186, 196, 310, 360, 370, 383, 387, 391, 417, 419-421, 427, 431, 455-456, 518, 682, 698 Host country, 2, 45, 51, 377, 498-499, 532-533, 538-539, 678-680 foreign direct investment, 51, 532 Housing prices, 281 in Japan, 281 HTML, 115, 475, 542, 665, 771 HTTP, 28, 34, 50, 115, 172, 266, 366, 413, 448, 475, 573, 638 Human capital, 492, 552 Human rights, 44 Hungary, 63, 148, 243, 273, 284, 417, 421-422, 427, 477-478, 518 Hyperinflation, 158, 165, 172-173, 358, 528 hypothesis, 6-7, 10, 12, 16, 225-228, 232, 234-242, 244-247, 250-252, 256, 329-334, 340, 350-351, 362, 376, 396, 431, 440, 444, 470, 486, 635 I IBRD, 9, 37 International Bank for Reconstruction and Development, 9, 37 Ice, 534 Iceland, 148, 284, 361-362, 417, 422, 427, 483, 518 Identifier, 76, 269 III, 10, 39, 118, 182, 367, 394-395, 409, 412-413, 431-432, 443 Illegal activities, 30 illustration, 180, 691 Image, 54, 428 country, 428 IMF, 1, 9-10, 12, 15, 36-37, 39, 43-44, 50, 65, 118, 121, 128, 131, 145-146, 147, 149-150, 156, 166, 170, 175, 183-184, 293, 359, 366, 483, 502-503, 505-506, 524, 526 Immigration, 125 Imperfect competition, 316 Implementation, 32, 37, 178, 394 Import license, 710 Import restrictions, 506 Import tariff, 685, 698 Importing, 3, 12, 27, 43, 88-89, 96, 114, 122, 149, 297, 316, 455, 645, 647-648, 651, 654-655, 657, 664-666, 683, 686, 710, 721, 725 Imports, 9, 11-12, 20-22, 49, 80, 98, 118, 120, 122, 124-126, 129, 142, 145, 157, 169, 266, 297, 315-317, 320, 323, 346-347, 365, 455, 498, 515, 547, 647, 663-666, 685, 688 barriers to, 20-21, 142, 266 financing, 647, 663-666, 688 India, 21-22, 266 nature of, 98, 297, 323, 547 Impression, 423 Inc., 1, 19, 53, 84, 87, 99, 117, 147, 187, 219, 255, 257, 259, 295, 304, 329, 369, 415, 422, 447, 495, 497, 514, 542, 543, 557, 573, 575, 577, 585, 613, 629, 632, 641-643, 645, 648-650, 669, 699, 743-744 Incentives, 32, 46, 134, 166, 413, 546, 606, 616, 622, 638, 670, 682, 684, 692 Income, 4-5, 8, 10-11, 13-14, 16, 37, 39, 118, 121, 125-127, 129-139, 142-145, 157, 183, 205, 267, 296, 342-343, 346, 355, 366, 393, 400, 407, 413, 419, 436, 492, 501, 503, 519, 521, 544, 547-548, 550, 554-556, 561, 563-567, 570-571, 573, 579-584, 589-591, 598, 601-602, 605, 611, 622-628, 632, 634, 636-638, 670, 678-687, 696-698, 750 decrease in, 5, 13, 118, 127, 342 differences in, 267, 611 disposable, 13, 136, 143 increase in, 5, 13, 16, 118, 121, 127, 129, 135, 142, 157, 342, 503, 571, 627, 682, 684-685, 696 market, 5, 8, 10-11, 13-14, 16, 37, 39, 121, 131-134, 143-145, 157, 205, 267, 342-343, 346, 355, 366, 393, 400, 407, 413, 419, 492, 503, 521, 550, 554-556, 570-571, 573, 579, 582, 589, 628, 632, 636-638, 681, 686-687, 696-698, 750 national, 8, 11, 37, 130, 135-139, 142-144, 346, 393, 413, 436, 492 permanent, 16, 138, 142, 342, 680 personal, 554 Income statement, 132, 143, 547, 555, 573 Income tax, 5, 550, 561, 563-564, 566-567, 570, 573, 582, 590, 602, 623, 625, 670, 680-682, 684, 687, 698 Incoterms, 644, 666-667 Independent variables, 12, 352 Independently floating, 154 Indexes, 260-262, 269, 272-273, 275, 280, 345, 424, 477-478, 491, 516 India, 19, 21-22, 29, 46, 63, 131, 148, 266, 325, 370, 416-417, 419, 421-422, 427, 434-435, 443, 477, 500, 518, 613, 660, 678 currency, 63, 131, 148, 266, 325, 370, 434-435, 518, 613 foreign direct investment, 29 GDP, 19, 21-22, 131, 419, 421-422, 443 tariffs, 21, 266 Indirect loss, 394 Indirect quote, 9, 65 Indirect quotes, 64, 66, 82, 275 Individual equity, 472 Indonesia, 1, 19, 23, 63, 121, 131, 148-149, 178, 273, 317, 360-361, 417, 421, 427, 477, 482-483, 516-518, 538, 744 Industrial design, 14 Industrial goods, 21 Industry, 3, 8, 30, 41, 58, 61, 137, 281, 328, 383, 388, 390, 393, 395, 400, 433, 439, 442, 456, 474-476, 481-482, 490-491, 493, 514, 532, 537, 547, 556, 597, 628, 630-631, 636, 643, 654, 664 Industry structure, 328 Inequality, 194-195, 199-200, 256, 496 infer, 3, 169, 249, 275, 348, 363, 429, 531, 636 Inflation, 4, 6-7, 9, 14, 101, 140, 150-151, 157-159, 165, 169-173, 176-178, 180-181, 183-184, 238, 260-263, 268, 272, 277-278, 285-293, 296-300, 302, 304-305, 307-309, 327, 330-335, 339-340, 343-345, 357-358, 361-363, 365-366, 413, 452-453, 469-470, 487, 498, 501-502, 515, 525, 528, 548-549, 558-562, 565-568, 570, 572-573, 587-590, 595-600, 710 anticipated, 302 budget deficits and, 498 costs of, 4, 176, 178, 183, 297, 302, 307, 335, 358, 362, 413, 487, 498, 568, 573, 587 expectations of, 330 hyperinflation, 158, 165, 172-173, 358, 528 unanticipated, 302 Inflation rate, 286-287, 292, 331-332, 335, 363, 365, 710 Information, 3, 9-10, 12, 14, 21, 29-30, 36, 38, 47, 54, 57-58, 61, 65, 73-77, 92, 94, 110-111, 117, 132, 135, 142, 145, 147-148, 151, 163, 172, 174, 186, 198, 202, 205, 211, 222, 225-227, 231, 235-238, 240-242, 245, 251, 253, 261-262, 266, 268, 290, 292, 319-320, 322, 326, 328, 331, 335-336, 339-341, 343, 347-348, 351-353, 355, 357, 363-365, 377, 380, 383, 391, 394, 398, 402-403, 408, 413, 423-425, 433, 439, 445, 466, 474, 480-481, 484-485, 487, 500, 507, 511, 513, 515, 521, 526, 530, 537, 539-541, 545, 584, 588-589, 592, 610, 613, 628-629, 633-634, 637, 639, 643, 645-647, 651, 658, 665, 672, 674-675, 688, 693, 698, 704, 716, 730, 738, 740-741 asymmetric, 487, 613, 628-629, 633-634, 637 Information technology, 12, 21, 347 Infrastructure, 9, 37, 87, 381, 398, 433, 534, 536 emerging markets, 398 investment in, 534 Initial public offering, 416 Initiator, 58 Innovations, 667 Insolvency, 26, 389 Instituto Nacional de Ecologia, 499 Insurable risk, 532 Insurance, 4, 9, 11-15, 26-27, 40, 43, 125, 132, 141, 143, 157, 228, 230, 232, 362, 375, 377, 391-392, 421, 432, 506, 513, 520, 529-530, 532-536, 538-540, 632, 642-649, 655, 657, 660-661, 665-666, 688, 693, 696, 718, 723-727, 735, 739-740, 747, 769 brokers, 13 contracts, 12, 228, 232, 533-534, 538, 644, 657, 718, 723-724, 735, 739, 747, 769 excess, 11, 14-15, 143, 228, 230, 520, 696 gap, 661 option, 4, 9, 12-15, 632, 718, 723-727, 735, 739-740 risk and, 230, 506, 513, 539-540, 643 score, 513 types of, 377, 432, 513, 533-535, 540, 646 Insurance certificate, 647 Insurers, 533-534, 539 commercial, 539 domestic, 534 foreign, 533-534, 539 private, 533-534, 539 small, 533-534 Intangible assets, 520 Intangible products, 683 Integration, 6, 8, 19, 39, 41, 44, 49, 178, 180, 183-184, 186, 387, 389-390, 438-440, 444-445, 456, 478-482, 485-486, 490-492, 768 Intellectual property, 14, 38 royalties, 14 Intellectual property rights, 38 intelligence, 513, 539 Inter-American Development Bank, 11, 37, 506, 532 Interbank market, 7, 9, 54-56, 58, 60, 65, 70-71, 74-75, 84, 104-105, 196-198, 201, 207, 215, 375, 395, 713, 739 Interest, 1-2, 4-10, 12-16, 24, 27, 29-32, 34, 37-38, 40, 43, 49, 73, 81, 109-111, 115, 118, 121, 126, 132, 134, 137-139, 141, 143, 145-146, 155-158, 162-163, 166, 172, 175-176, 179-181, 187-218, 219-221, 225-226, 228-235, 238, 240-245, 247-253, 274-275, 287, 293, 313, 329-335, 339-347, 351-353, 357-359, 361-364, 366-367, 372-377, 379-381, 383-386, 393, 395-397, 399-413, 420, 431, 448-449, 452, 454, 469-472, 480, 487-488, 498, 501-502, 504-505, 516, 520-523, 525-527, 538-540, 545-548, 550-553, 557, 561, 567-569, 571-572, 577, 579-580, 582-583, 586-589, 591-597, 601-607, 611-612, 613, 615-616, 620, 623, 627, 636, 652, 654-657, 659-661, 666, 670, 672-675, 687-688, 690-696, 702-704, 706, 718-719, 721, 723, 726, 728, 733-734, 736, 739-741, 743-771 credit, 2, 4-5, 7-8, 10, 14-16, 73, 121, 155-156, 158, 176, 179, 201-204, 206, 215, 366, 374, 384, 393, 395-397, 400, 402-407, 410-413, 521, 525, 552, 652, 654-657, 659-661, 666, 674, 688, 692-694, 696, 702, 744, 746-752, 754-755, 759-760, 768-769 Interest arbitrage, 190, 193-196, 198-200, 204, 215-217 Interest expense, 547, 551, 572 Interest rate, 2, 4-10, 12-13, 15-16, 138, 145, 156, 176, 181, 187-218, 219-221, 225-226, 228, 230, 232-235, 238, 240-242, 244-245, 248-253, 287, 329-335, 340-347, 351-352, 357, 362-363, 367, 374-377, 384, 393, 396, 399-402, 404-413, 448-449, 452, 469-472, 480, 488, 501, 504-505, 521, 523, 526, 540, 550-551, 553, 557, 561, 567-569, 586, 588-589, 591-592, 594, 596, 602-605, 612, 613, 615, 636, 652, 655, 657, 687, 690-691, 693-694, 718, 721, 723, 733-734, 736, 739-741, 743-771 current, 2, 4, 6, 8, 13, 16, 138, 145, 188-190, 194-195, 211, 213-214, 216-218, 220, 225-226, 233, 241, 249, 252-253, 335, 340-341, 343-347, 351-352, 357, 362-363, 374, 376, 396, 402, 413, 448, 488, 501, 540, 550, 569, 586, 589, 591, 594, 603, 605, 734, 740-741, 748, 756, 759, 770 guaranteed, 216, 399, 521 risk, 2, 4-10, 12-13, 15-16, 187-190, 193-194, 197-198, 200-209, 215-218, 219-221, 781 225-226, 228, 230, 232-235, 238, 240-242, 244-245, 248-253, 329-330, 335, 374-376, 384, 393, 396, 399-400, 402, 404-412, 448-449, 452, 469-472, 480, 488, 501, 504-505, 521, 523, 526, 540, 551, 561, 568, 586, 588-589, 592, 602-603, 605, 612, 613, 615, 636, 657, 690-691, 693, 718, 721, 723, 734, 739-741, 743-745, 747-752, 755, 757, 759-760, 765, 768-770 Interest rates, 4-6, 10, 16, 24, 27, 37-38, 40, 43, 81, 109-110, 115, 132, 138-139, 141, 143, 145-146, 156, 158, 162, 172, 176, 179, 181, 187, 189-205, 207-217, 219, 221, 229, 231, 233-234, 238, 240, 242-243, 247-250, 253, 274-275, 287, 293, 330-335, 339-341, 343-347, 357-359, 361-362, 364, 366, 375-376, 383, 385, 395-396, 401-402, 405-406, 408-409, 411, 413, 420, 452, 454, 470, 480, 487, 501-502, 516, 522, 525-527, 539-540, 550, 553, 571, 587-589, 591-593, 595-596, 602, 605, 616, 620, 659-661, 666, 674-675, 687, 694-695, 704, 743, 747-754, 756-757, 759, 761-767, 769-771 determination of, 198, 340 inflation and, 172, 181, 287, 331, 343, 452, 470 investment and, 347 monetary policy and, 158, 359 nominal, 4, 6, 16, 187, 189, 215, 238, 293, 330-335, 344, 347, 362, 376, 452, 470, 501, 525, 588-589, 591-593, 595-596, 674, 687, 694 present value and, 190, 216 real, 6, 10, 16, 43, 115, 138, 141, 146, 172, 187, 201, 205, 234, 274-275, 287, 293, 330-331, 334-335, 340, 343-347, 359, 361-362, 366, 376, 395, 413, 420, 452, 470, 480, 501-502, 525, 553, 571, 587-589, 595-596, 687 Intermediaries, 7, 159, 198, 370, 377, 383, 398-399, 433, 445, 550, 643, 657, 660, 698, 754-755, 757, 761, 768 capital-market, 445 Internal debt, 377 Internal rate of return, 1, 213, 401-402, 409, 411, 756, 759 IRR, 213, 402 Internal Revenue Code, 683 Internal Revenue Service, 670 IRS, 670 Internal sources of funds, 370 International Accounting Standards Board, 9, 609 development of, International Bank for Reconstruction and Development, 9, 37 International Banking, 6, 9, 196, 387-388, 390, 392-393, 411-412, 501 central banks, 393 commercial banks, 387-388, 392 overview, 390 International bond market, 378, 380-381, 383-385, 403, 411, 448 International bonds, 9, 172, 370, 377-378, 380, 383-384, 399-400, 402, 407, 410, 517 International business, 23, 36, 176 International capital, 2, 27, 37-38, 41, 43, 58, 117, 132, 141, 143, 146, 260, 393, 441, 447-493, 497-498, 501-502, 519, 524, 543-574, 577-612 International capital markets, 37-38, 141, 441, 449-493, 498, 519 International Chamber of Commerce, 9, 643-644, 649, 667 International Development Association, 9, 37 International equity market, 458 International Finance Corporation, 9, 37, 429, 478, 662 International financial markets, 244, 400, 435, 445, 649, 652 International Financial Reporting Standards, 9, 609, 612 convergence and, 612 International investment, 10-12, 132-134, 142-145, 209, 346, 459, 606 International markets, 140, 266, 292, 361, 371-372, 385, 407, 410, 449, 644 defined, 292 International Monetary Fund, 10, 36, 52, 65, 118, 146, 147-148, 154, 156, 166, 276-279, 293, 332, 782 345, 413, 483, 502, 541, 741 International monetary system, 2, 165, 167 Bretton Woods Agreement, exchange rates, 165 gold standard, 165 International Organization for Standardization, 62 International pricing, 334, 493 International trade, 3-6, 9-10, 14-17, 20-23, 38, 41, 45, 50, 58, 74-75, 80, 117, 128, 161-162, 170, 172, 253, 267, 287, 291, 357, 388, 519, 641-667, 687, 695, 706, 760 barriers to, 20-21 growth in, 21, 74 nature of, 117, 658 International transactions, 9, 65, 73, 76, 124, 133, 168, 319, 651 Internationalization, 45, 380 Internet, 58, 100, 128, 145, 293, 328, 435, 677 Interviews, 377, 441 Inventories, 17, 23, 54, 73, 163, 323, 327, 374, 670-671, 693-694, 696-697 Inventory, 70, 73, 105-106, 163, 323-324, 423, 546, 558-559, 569, 647, 654, 671, 673, 687, 693-695 management of, 546, 673 Inventory management, 693 Investment, 1-3, 5-16, 23-27, 29-30, 34, 40-41, 43, 45-46, 49-52, 57, 61, 84, 108, 117-118, 121, 123, 126, 129, 131-146, 155, 158, 161-162, 176, 188-189, 191-193, 197, 201-202, 204-207, 209, 214-216, 219-221, 223, 225-226, 228, 230-231, 235, 242-243, 246, 249-251, 265, 324, 330-331, 337-338, 346-347, 354-355, 357, 362, 365, 370, 374, 377, 380, 382, 386, 388, 390-391, 403-404, 407-408, 412, 418, 420-424, 426, 433, 439-441, 443-445, 448-449, 451, 457-459, 463, 466-468, 470, 477-481, 484-486, 489-491, 493, 496, 499, 501, 503-504, 506, 508-509, 512-520, 523, 526, 529-542, 543-546, 548-550, 554-556, 558-559, 568-569, 571-574, 577, 580-581, 587-591, 596-601, 606, 608-609, 611-612, 613, 615-617, 626-631, 633, 635-639, 644, 660, 662, 665, 670-671, 674-675, 678-680, 684, 687, 691, 696-697, 699, 701, 716, 734-735, 750, 752-753, 756-757, 770 finance and, 16, 424, 513, 532, 574, 662 government, 1-3, 5-8, 11-15, 26-27, 49, 117-118, 121, 126, 129, 135-144, 155, 161-162, 189, 204-207, 215, 331, 347, 355, 362, 390, 403-404, 407, 420-423, 440, 448, 480, 499, 503-504, 506, 508, 512-517, 519-520, 523, 526, 530-534, 536-540, 550, 554, 568-569, 571, 630-631, 636, 660, 662, 678-679, 684, 687, 701, 750 gross, 7-8, 16, 135-136, 143, 346, 386, 548, 550, 684, 696 interest rates and, 27, 132, 143, 193, 204, 209, 214-215, 330-331, 539, 571, 588, 596, 674-675 net, 1-3, 8, 10-12, 45-46, 126, 129, 132-137, 139-140, 142-145, 162, 346, 354, 382, 412, 448, 486, 508, 514, 533, 541, 543-546, 548, 556, 559, 568-569, 571-573, 577, 581, 589-591, 597-600, 606, 611, 615, 670-671, 674-675, 678-680, 684, 687, 691, 696-697, 734-735, 750, 752-753, 756 present value and, 216 private, 1, 7, 9, 11-14, 30, 40-41, 123, 126, 129, 136-138, 140, 143-145, 155, 161-162, 176, 219, 347, 377, 380, 408, 422, 424, 440, 443, 445, 499, 513, 519-520, 530, 532-535, 537, 539, 550, 636, 644, 660 saving and, 12, 117, 135, 137-138, 141-142, 144, 146, 346 stock market and, Investment banks, 7, 16, 57, 117, 357, 377, 380, 382, 424, 426, 433, 441, 699, 701, 716, 734, 750, 752 Investment decisions, 11, 117, 137, 143, 331, 440, 543, 571, 613, 615, 627, 631, 636-637, 639 Investment spending, 136, 138, 501 Investments, 2, 5, 8-9, 12-13, 16, 23, 25, 27, 29-31, 34, 37, 40, 61, 91, 121, 132-134, 139, 158, 163, 188, 191, 193, 205-207, 213-215, 217, 219, 221-223, 226-227, 230-231, 242, 244, 247-250, 325, 339, 362, 374, 387, 404, 419, 439, 441-442, 449-450, 458-459, 466, 469-470, 478, 481, 484-485, 489-490, 493, 499, 503, 506, 508, 511, 519, 528-530, 534, 537, 544, 546-549, 552-553, 555, 558-559, 561-562, 564, 571, 579, 597-599, 601, 607, 609-610, 612, 627, 629, 631, 634, 661, 671-672, 675, 687, 696 financial crisis and, 661 life insurance, 13 returns of, 230, 458-459, 478, 489 revenues from, 561 Investor relations, 36, 433, 444 Investors, 2, 4-6, 8-11, 13-14, 16, 20, 23-24, 26, 30-31, 36, 40-43, 45, 50, 54-55, 58-60, 88, 130, 138, 145, 162-164, 172, 175, 182, 187, 189-190, 194, 198, 204-207, 214-215, 217, 219, 227-230, 234-236, 242-244, 246, 248, 250-251, 253, 258, 274, 333-335, 352, 356, 359, 365, 370, 375, 377, 380-383, 385-387, 399, 402-404, 407, 409-412, 416, 419-420, 424-425, 428-429, 432-434, 437, 439-440, 443, 448-449, 452-454, 456-460, 462-463, 465-466, 468-472, 474, 476, 478-481, 483-492, 497-498, 506, 511-512, 519-521, 523, 525-526, 528, 530, 532, 534, 536-537, 540, 546, 549-550, 556, 571, 579, 609-610, 612, 613-618, 621-622, 628-629, 636, 639, 652, 658, 671, 684, 699-701, 711, 716, 734, 738, 741, 747, 749, 757-758, 768 Invoices, 644, 646, 654, 657, 659, 665 Iran, 148, 417, 421, 427, 500-501 exchange rate, 148 Iraq, 148, 501 Ireland, 39, 141, 148, 182-183, 284, 332, 345, 356, 358, 417, 421, 426-427, 455, 476, 498, 501, 506, 518 country risk, 498, 501 GDP, 183, 284, 421, 498 IRR, 66, 213, 402 IRS, 670, 682-683, 696 ISO, 62-63 Israel, 63, 78, 148-149, 417, 421, 427, 477, 483, 518 Italy, 6, 19, 23, 33, 35, 39, 48, 130-131, 148, 176, 181-182, 204, 262, 267, 284, 332, 345, 393, 416-417, 421-422, 427, 451-453, 455, 458-459, 475-476, 483, 485-486, 518, 536, 644, 697 J Jamaica, 39, 148, 518 Japan, 5, 21-23, 25, 33-35, 42, 48, 51, 55-56, 60, 63-65, 67, 99-101, 122, 130-132, 142, 144-145, 148, 152, 164, 166, 208, 214, 217, 241-243, 261-262, 266, 272-273, 278, 280-284, 293, 295, 310, 332, 345, 372, 376-379, 383, 387-389, 393, 403, 409-410, 413, 416-419, 421-422, 425, 427-428, 432, 443, 451-453, 455-456, 458-459, 476-478, 483, 485-486, 489-490, 500, 517-518, 532, 573, 612, 660 exports, 21-22, 132, 142, 145, 266, 455, 660 foreign direct investment, 34, 51, 132, 532 foreign exchange, 5, 55-56, 60, 63-65, 67, 99-101, 122, 144-145, 148, 164, 208, 217, 241-243, 272, 280-281, 284, 393, 443, 517 international trade in, Japanese yen, 6, 57, 62, 64, 66, 84-85, 102, 144, 211, 213-214, 216, 219, 224, 236, 240, 284, 295, 322, 329, 350, 573, 612, 713-716, 770 Jargon, 13, 71, 242, 256, 288, 349, 534 job offer, 282 Jobs, 30, 45-46, 50, 141, 169, 283, 303, 512, 552, 678 levels, 283 measuring, 303 service, 552 Joint venture, 10, 29-30, 364, 442, 444, 530, 537, 680, 686 Joint ventures, 49, 686 Jordan, 63, 148, 417, 421-422, 427, 477, 518, 521, 639 K Kazakhstan, 66, 148, 518 Keiretsu, 33 Kenya, 148, 178, 518 Knowledge, 14, 45-46, 51, 57, 142, 187, 339, 433, 533, 735 sharing, 51, 142 Korea, 19, 35, 63, 78, 131, 148, 158, 273, 284, 360-361, 380, 417, 419, 421-422, 426-427, 440, 443, 477-478, 481, 483, 518-519, 635 Kosovo, 148, 150 Kuwait, 40, 63, 148, 518 L Labor, 6, 23, 29, 42-43, 45-46, 49, 121, 138, 143, 183, 274-275, 294, 299, 307, 316, 492, 497, 512, 516, 532-533, 547, 552, 560, 573, 587 emerging markets, 6, 23, 43, 46, 49, 274, 492, 532-533 foreign direct investment, 29, 532 investment in, 6, 138, 532, 587 trends in, 23 Labor costs, 23, 275, 299, 516, 560, 573, 587 labor force, 46, 552 Labor market, 45 Labor productivity, 294 Lags, 239 Laissez-faire, 44 Language, 47, 433 Latin America, 35, 172, 178, 203, 359, 381, 386, 426-428, 459, 577 debt, 172, 178, 381, 386, 577 emerging markets, 35, 359, 426-428, 459 Latvia, 148, 361-362, 417, 422, 427, 518 Law of one price, 10, 265-270, 274, 280-281, 292-293, 295, 313, 445 Lawsuits, 632 Layoffs, 25 Leader, 30, 59 Leadership, 304 Learning, 270 Lebanon, 63, 148, 518 legal aspects, 744 Legal environment, 31 Legal jurisdiction, 651 Legal origin, 33 Legal systems, 33, 500 civil law, 33 common law, 33 Legislation, 14, 33, 392, 476, 533, 644 Lehman Brothers, 26-27, 73, 106, 203, 218, 361, 383, 404, 748 Letter of credit, 4, 10, 648, 666 letters, 62, 428, 701 international, 62, 428, 701 Leverage, 10, 27, 141, 243-244, 372, 386, 389, 395, 465, 475, 552, 579, 582-583, 615, 635, 738 Leverage ratio, 243-244, 389, 395, 579 Leveraged buyout, 583 Liabilities, 11-12, 14, 24, 26, 51, 95, 104, 131, 134, 138, 155, 159, 171, 184, 203, 205, 252, 301, 361, 373, 375, 392, 418, 498, 513, 613, 658, 661, 670-671, 696, 729, 741, 743, 745, 749, 765-766 Liability, 9, 16, 89, 94-95, 97-99, 101, 114, 155, 196, 207-209, 216, 373, 392, 563-566, 570, 588, 623, 666, 707, 710, 717, 723, 725-727, 729, 766-767 business, 9, 16, 95, 98-99, 392, 588, 710, 729 contingent, 99, 717 contractual, 16, 99, 114, 666, 707, 717, 727 law, 563 products, strict, 710 Liberalization, 6, 20, 23, 41-43, 49-52, 357, 419, 428, 434, 440, 443, 445, 480-482, 490, 493, 541 LIBOR, 6-7, 10, 145, 198, 203-205, 375, 384, 395-397, 405, 410-413, 540, 657, 748, 750-752, 754-755, 763, 769-771 London Interbank Offer Rate, 10, 198 Licenses, 388, 499, 680 Licensing, 10, 27, 30, 49, 442, 556-557, 572 royalty payments, 556-557, 572 Licensing agreement, 30 Licensing agreements, 556, 572 Life insurance, 13, 377 investments, 13 private, 13, 377 term, 377 Line of credit, 637, 655, 666, 674 Liquidation, 77, 644 Liquidity, 10, 25-26, 31, 57, 59-60, 74-75, 77, 103, 105, 171, 176, 203-204, 218, 248, 359, 381, 395, 404, 422-426, 428-429, 437-439, 443-445, 478, 481-482, 503, 505, 513-514, 526, 531, 610, 661-662, 672, 691, 696, 700, 751 List price, 270 listening, 436, 662 effective, 436 Lithuania, 148, 417, 422, 427, 518, 667 Loading, 532, 539, 643-644 Loans, 1, 5-7, 9, 13-14, 17, 24-26, 33, 37-38, 49, 118, 128, 132, 155-156, 179, 183-184, 196-197, 203, 215, 217, 243, 252, 359, 370-372, 374, 376-377, 390, 392-400, 404, 407, 411-412, 501-502, 505-506, 513, 525, 530, 533, 537, 540, 553, 557, 577, 603-604, 606, 609, 636, 643, 645, 655, 660-662, 665-666, 678, 686-687, 689, 744-745, 747, 749-750, 760, 769 Local government, 205, 378, 520, 687 Location decision, 303 Logistics, 12, 21, 534 warehousing, 534 London, 10, 51, 55-56, 68, 145, 186, 190, 198, 217, 253, 266, 293-294, 370, 381-383, 388, 416-417, 421-422, 425, 427, 429-430, 434-436, 445, 469, 662, 667, 701, 716, 748 Eurocurrency market, 388 GDRs, 434 London Interbank Offer Rate, 10, 198 LIBOR, 10, 198 London Stock Exchange, 416-417, 421, 425, 427, 435-436, 469, 701, 716 Long-run equilibrium, 163, 345 Long-term assets, 203 Long-term debt, 326, 374, 377, 603, 671 notes, 374, 603 Long-term financing, 660 Loss, 2, 4-5, 8, 16, 40, 43, 87-88, 94, 98-99, 104, 114-115, 140, 164-165, 169, 176-177, 182, 193, 200, 221-223, 225, 227-228, 230-232, 250-252, 286, 295, 304, 309, 317, 325, 330, 337, 346, 353, 361, 394, 453, 496, 498, 506, 512, 528, 552, 571, 601-602, 606, 609, 614, 617, 620, 622-624, 626, 630, 666, 671-672, 695, 702-703, 707, 709-710, 714, 718-719, 722, 724, 730, 738, 740, 747 assessment, 394 chance of, 164 control, 5, 40, 140, 176, 252, 666, 672, 695, 702 direct, 2, 4-5, 193, 317, 394, 552, 571, 703 distributions, 222, 630 expected, 2, 5, 8, 16, 40, 88, 94, 98, 114-115, 140, 176, 222, 225, 227-228, 230-232, 250-252, 286, 330, 346, 506, 528, 571, 602, 606, 614, 622-624, 626, 730, 738 forecasting, 16, 115, 232, 250-251, 330, 337, 346, 353, 361 frequency, 8, 251, 325, 512 income, 4-5, 8, 16, 346, 571, 601-602, 622-624, 626 indirect, 4, 394, 552, 571 known, 2, 4, 8, 88, 225, 227, 232, 330, 353, 361, 703, 724, 738 paying, 2, 88, 140, 169, 228, 601, 695 ratio, 140, 252, 286, 361, 394, 453, 496, 498, 601 reduction, 2, 177, 230, 394, 453, 496, 623 reserve, 4, 40, 115, 140, 747 settlement, 4, 8, 16, 200, 707, 714, 747 severity, 295, 361 underwriting, 16 Louvre Accord, 164 Low-cost countries, 21 Low-interest loans, 9, 37 M M&A, 34-35 Maastricht Treaty, 6, 178-179, 181-182, 185, 357-358 Macedonia, 148, 518 Macroeconomics, 52, 253, 366, 542 use of, 366 Madagascar, 148 major points, 769 Malaysia, 1, 35, 63, 131, 148, 178, 266, 273-274, 300, 317, 360-361, 417, 421-422, 427, 430, 477, 483, 516-519 Malta, 148, 182, 418, 421, 427, 518 Management, 1, 3, 5, 11-14, 19, 21, 23-24, 29-32, 36, 39-41, 44, 47, 49-50, 53, 56, 59, 87, 101, 104, 117, 147, 187, 219, 229, 232, 238, 244, 250, 253, 255, 257, 259, 295, 305, 316, 319, 322-325, 329, 355, 362, 364-367, 369, 388, 390, 398, 413, 415-416, 437, 440-441, 445, 447, 478, 492-493, 495, 497, 507-508, 531-532, 543, 546, 554-557, 559, 572, 575, 577, 585, 589, 597, 613-639, 641, 667, 669-674, 677-678, 680, 693, 695-698, 699, 717, 743, 745, 747, 749-750, 771 activities of, 31, 36 Managers, 1, 16, 29-30, 32, 50, 54, 58-59, 73, 92, 107, 139, 202, 232, 239, 241, 244, 246, 253, 268, 270, 295, 297, 316, 318-324, 326-327, 329, 335-336, 343, 348, 354, 364, 367, 377, 382, 385, 416, 431, 436, 438, 440, 442, 444-445, 448, 466, 478, 482, 485-487, 491, 507-508, 510, 538, 546, 552, 554, 556, 558, 571, 585, 600, 606-609, 611-612, 613-614, 622, 627-638, 672, 675, 684, 687, 693-694, 701, 709, 738, 743, 749-750 Manufacturers, 268, 324 Manufacturing, 27, 45, 72, 141, 144, 182, 260, 304, 316, 328, 511, 546-547, 552, 557-558, 570, 587, 643, 681-685, 687, 693-694, 696, 698, 740 emerging markets, 511 international investment, 144 Manufacturing operations, 587 Margin, 3, 9-11, 13, 15, 61, 169, 179, 198, 246, 305-307, 323, 420, 435, 567, 570, 613, 661, 684, 691, 696, 701-703, 708, 739-740, 752, 771 Margin call, 10, 702-703 Marginal benefit, 552-553, 692-693 Marginal cost, 10, 311-315, 327-328, 552-553, 627, 693-694 Marginal revenue, 10, 311-312, 314-315 Margins, 60, 364, 633, 701-702, 710 Market approach, 1, 339-341, 362 Market capitalization, 16, 163, 389-390, 416-422, 426, 429, 440, 478, 481-482, 487, 489, 635 Market economies, 533, 541 Market economy, 644 Market efficiency, 10, 227-228, 232, 250 Market entry, 325-326, 555 examples of, 325 Market equilibrium, 253, 445, 447-448, 470, 493 Market expectations, 164 Market failure, 534, 667 Market leader, 59 Market performance, 511 Market position, 471 Market power, 60, 299, 315, 429 Market risks, 744 Market segment, 106 Market segmentation, 445 Market share, 61, 75, 266, 325-326, 328, 393, 484, 549 Market size, 398 Market value, 8, 11, 134, 180, 213, 302, 370, 385-386, 445, 449, 466, 487, 504-505, 537, 552, 555, 578-579, 582, 609, 615, 635, 638, 746-747, 752, 767 Marketing, 23, 29, 44, 56, 268, 295, 323, 325, 328, 365, 442, 556, 630, 644, 664, 716 defined, 442, 664 global, 23, 29, 44, 295, 328, 630 people, 44, 556 place, 23, 29, 644 Marketing management, 325 Marketing strategy, 325 Marketplace, 54, 60, 117, 164, 209, 258, 384, 407, 432, 452, 630 Markets, 1, 6, 8-15, 23-24, 26-27, 29, 31, 33, 35, 37-38, 40-44, 46-47, 49-50, 55-61, 65-67, 73, 85, 87-115, 117, 131, 137-142, 145, 147-148, 158, 161-162, 165, 168, 176, 179, 181, 183-184, 186, 187, 189, 191, 196-198, 200, 203, 206-207, 209, 215-216, 218, 219, 225-227, 234, 239, 244, 250-251, 253, 265-268, 270-272, 274-275, 281, 284-286, 292, 295-296, 301, 310-313, 315, 319-320, 323, 326-328, 329, 336, 342-343, 346, 348, 351-355, 357, 359, 361-362, 364-367, 370-372, 376-379, 381, 383, 385-388, 390, 392, 395, 398-400, 403-405, 407, 410-413, 416, 419-424, 426-431, 433-441, 443-445, 448-493, 497-498, 501, 506, 511, 517-519, 529, 532-533, 539, 541-542, 552, 596, 610, 612, 614, 622, 627-629, 631, 637, 644, 649, 652, 657, 660-662, 664, 666, 679, 687, 689, 691, 693, 695, 699-700, 704, 706, 712, 716, 783 727, 734, 738-741, 743, 746-751, 760, 768-769 development of, 9, 37, 59, 103, 168, 215, 390, 466, 469, 533 perfectly competitive, 60, 67, 327 thin, 100, 103, 429 virtues of, 760 Markup, 37, 81, 683 Marquee, 365 meaning, 65, 73, 124, 131, 144, 244, 365, 393, 424, 482, 644 Measurement, 144, 394, 482 measurements, 336 mechanics, 658, 754 Media, 117, 433-434, 441, 695 median, 11, 170, 245 Medical care, 269 medium, 4, 6-7, 348, 383, 388, 395, 399-400, 411-412, 656-657, 660-661, 663, 738 costs of, 4, 399-400, 657 electronic, 4, Medium of exchange, 4, 663 meetings, 38, 41, 44 formal, 38 Mercantilism, 48 Merchandise imports, 515 Merchant, 8, 11, 388, 536, 700 Merchant banks, 388 MERCOSUR, 21, 178 Mergers, 34-36, 50, 388, 422, 546 Mergers and acquisitions, 34-35, 50, 388, 546 M&A, 34-35 message, 76, 115 Mexican pesos, 84, 87, 123, 406 Mexico, 12, 35, 39-40, 43, 63, 67, 78, 84, 87, 122-123, 139, 144, 148-149, 157, 173, 176-178, 205-206, 246, 252, 266, 273, 278, 284, 293, 331, 355, 359, 386, 406, 413, 417, 419, 421, 427, 477, 481, 499-500, 502, 505, 518-521, 524-527, 541-542, 642, 706 foreign direct investment, 520, 542 Middle East, 49, 427-428, 430, 541 Middlemen, 398 Mining industry, 456 Ministry of Finance, 378 MNCs, 21, 23, 27, 29, 31, 35, 41, 43-45, 134, 209, 239, 370-372, 374-377, 381, 386, 388, 391, 395, 403, 407, 410-411, 416, 429, 443, 499-500, 503, 506, 512, 516, 523, 532-533, 539, 677-679, 681, 684, 687-688, 691, 769 Modernization, 581 modifiers, 403 Monetary policy, 6, 11, 16, 27, 50, 149, 153, 155, 158, 161-163, 175, 182-183, 185, 253, 343, 353, 358-359, 366, 451, 453, 501, 513, 710 expansionary, 27 Fed and, 162 interest rates and, 27 international trade and, 253 Money, 1, 4, 7-14, 16, 26-27, 32, 40-42, 51, 54-59, 64, 69, 73-74, 76, 80, 85, 95, 115, 118-121, 123, 126, 130, 134, 137-138, 140, 149-150, 155-165, 170-172, 175-176, 184-186, 187, 189-191, 196, 200, 203, 206-209, 214-216, 218, 219-221, 223, 225-228, 230-234, 242, 246-247, 250-251, 256, 260-262, 264, 268-270, 281, 286-287, 292, 294, 296, 328, 330-331, 335, 337, 339-340, 342-343, 352-356, 358, 361-363, 366-367, 370, 375, 378, 382, 386-388, 390, 392, 396, 399-400, 413, 423-424, 435-436, 438, 445, 449, 458, 468, 470, 484, 490, 493, 498, 501, 505-506, 517, 520-521, 523, 525, 534, 536-537, 541, 544, 546, 549-550, 584, 592, 601, 622-623, 632, 638, 643, 650, 654, 656, 658, 663-664, 666, 672-675, 677-678, 687-689, 691, 696-697, 701, 703-704, 707-712, 714, 718, 724, 730, 732-735, 737, 740-741, 744, 749, 757, 767, 769 commodity, 10, 42, 292, 701 demand for, 13, 16, 69, 80, 119-121, 156-157, 159-162, 165, 184, 342, 370, 386, 501, 525, 673, 677-678, 696-697, 749 M1, 155 properties of, 246 real value of, 342, 687 Money center banks, 55, 59, 711 Money market, 11, 16, 76, 175-176, 187, 189, 203, 207-209, 215-216, 219-221, 225-226, 228, 784 231, 242, 247, 250-251, 256, 342-343, 378, 449, 470, 490, 654, 656, 658, 666, 674, 687, 689, 691, 744, 749 Money market investments, 219, 221, 231, 247, 250, 470, 490 Money multiplier, 155, 161 Money supply, 12, 155-163, 165, 176, 184-185, 342-343, 358, 363 aggregate demand and, 160 changes in, 12, 157, 162, 185 Monopoly, 13, 297, 422 Monte Carlo simulation, 632 monthly statement, 659 Moral hazard, 27 Mortgage, 19, 24, 26, 203-204, 404, 748 Mortgage loans, 24, 404 Motivation, 122, 614, 633, 744 Motor vehicles, 27 business, 27 Mozambique, 148, 518 Multilateral development banks, 11, 37, 50, 662 Multilateral Investment Guarantee Agency, 11, 532, 534 Multilateral netting, 3, 11, 78-79, 673, 675-677, 696-697 Multilateral trading system, 38 Multinational corporation, 3, 5, 10-11, 13-14, 19-52, 228, 371, 406, 416, 443, 478, 498-499, 506, 530, 539-540, 651, 655, 670, 672-673, 676, 678-679, 681, 686-688, 693, 696-697, 745-746 Multinational corporations, 2, 19, 21, 27, 34, 43-44, 49, 54, 56, 58, 141, 209, 232, 370, 585, 632, 682, 692, 745 MNCs, 21, 27, 43-44, 209, 370 Multiplier effect, 155 Mutual funds, 9, 40-41, 58, 60, 117, 424, 610 Myanmar, 1, 148, 178, 516-517 N NAFTA, 12, 21, 520, 542 North American Free Trade Agreement, 520 NASDAQ, 10, 422-423, 425, 430, 432, 443, 711, 713-714 National income, 8, 11, 130, 135-137, 142-144, 346 National security, 48 Nationalism, 512 Nationalization, 11, 497-498, 512, 520, 533 Nations, 1-2, 8, 10, 16, 21, 27, 36, 38, 44-45, 51-52, 142, 146, 198, 291, 299, 361, 381, 392, 421, 501, 533, 663 political risk, 501, 533 Natural resources, 520, 538 Negotiation, 424, 659, 665, 752 Defined, 424 Nepotism, 515, 538 Net exports, 135, 143 Net income, 134, 563-564, 680-682, 684-685, 698, 750 Net interest, 748, 752-753 Net international investment position, 10-12, 132-134, 142-143, 346 Net investment, 589-591, 599-600 Net position, 78 Net positions, 126 Net present value, 1, 12, 139, 448, 486, 508, 543-545, 551, 556-557, 561-562, 565-572, 577-578, 581, 584-585, 593, 595, 606, 611, 615, 618, 679, 687, 746, 762, 767 NPV, 508, 544-545, 557, 562, 565-572, 581, 584, 593, 595, 611, 618 Net present value analysis, 572 Net working capital, 12, 546-548, 552, 559, 561, 564, 571-573, 579, 597, 669-698 Netherlands, 6, 35, 39, 148, 181-182, 284, 332, 345, 377, 391, 393, 417, 427, 455, 476, 483-484, 518, 673 GDP, 284 international trade, Netherlands Antilles, 148, 391 Netting, 2-3, 11, 76, 78-79, 673, 675-677, 696-697 Neural network, 352-353 neural networks, 352 New products, 316, 326 New York Federal Reserve Bank, 144, 521 New York Stock Exchange, 23, 56, 84, 416 New York Times, 357, 367, 541-542 New Zealand, 55, 63-64, 66, 148, 219, 242, 284, 332, 345, 351, 416, 455, 483, 499, 518, 700, 714 corruption, 499 currency, 63-64, 66, 148, 219, 242, 284, 345, 351, 499, 518, 700, 714 Newspapers, 65, 82 NGOs, 44 nongovernmental organizations, 44 Nicaragua, 148 Nielsen, 355, 367 Nigeria, 148, 169-170, 512, 518, 521 Nominal interest rate, 6-7, 16, 215, 331, 334, 362-363, 452, 469, 561, 588-589, 594 Nominal interest rates, 4, 187, 189, 215, 238, 330-331, 333-335, 344, 376, 452, 588-589, 592-593, 595-596, 687, 694 Nominal value, 298, 548 Nominal wages, 362 Nongovernmental organizations, 44 North America, 12, 21, 35 North American Free Trade Agreement, 520 NAFTA, 520 Norway, 40, 63, 148, 242, 273, 284, 358, 417, 421, 427, 455, 476, 483, 497, 516-518, 662 Norwegian krone, 66, 714 NPV, 508-509, 535, 544-546, 548, 550, 557, 562, 565-572, 581-582, 584, 593-595, 598-600, 603-605, 608-609, 611, 618, 621, 627, 637 NYSE, 10, 56, 416, 419, 422-423, 425-426, 430, 432-437, 440-441, 443, 481, 555, 700-701, 741 NYSE Euronext, 422-423, 425, 434, 700 O Objectives, 29, 36, 151 accounting, 29 IMF, 36 Obligation, 4, 7, 89, 397, 403, 522, 538, 632, 653, 711-713, 716, 718-719, 721, 724, 727, 737, 739 Obligor, 658 Occurrence, 3, 13, 77, 90, 249, 356 Oceans, 21 OECD, 12, 38-39, 66, 130, 145-146, 183, 283-284, 294, 316, 392, 532, 682-683, 698 Organization for Economic Cooperation and Development, 12, 38, 130, 145-146, 183, 283-284, 316, 392, 532, 683 Offer, 1-2, 4, 6-7, 10, 12, 37-38, 46, 48, 59, 71, 78, 84, 107, 144, 153, 190, 193, 198, 201, 217, 228, 282-283, 293, 305, 335, 382, 388, 391, 396, 400, 420, 425, 444, 448-449, 458-459, 487, 505, 519, 526, 532-533, 543, 550, 553, 635, 642, 648, 655, 660-661, 666, 687, 734, 743, 750-752, 754, 759, 761 Offer rate, 10, 198, 754 Offset, 1, 8, 11-12, 14-15, 45, 89, 94-95, 134, 159, 162, 185, 187, 208, 291, 304, 308, 325, 552, 559, 563-566, 573, 587, 598, 614, 617, 623, 663-665, 671, 682, 684, 718, 728, 734, 744-745, 752, 765, 769 Offsets, 95, 124, 216, 285, 298, 589, 602, 663-664, 666-667 Offshore banks, 392 Offshore financial centers, 391, 413 Oil, 15, 32, 40, 47-49, 60, 99-101, 125, 131, 183, 266, 268, 316, 434-435, 497, 499, 501-502, 507-508, 514, 521, 535-538, 542, 664, 738 Oman, 148, 518 OPEC, 501-502 Organization of Petroleum Exporting Countries, 501 Open account, 14, 654-655, 661-662, 665-666 Open economy, 143-144, 146 Open market operations, 12, 155-157 Operating expenses, 681, 685, 698 Operating exposure, 12, 14, 297, 301, 327 Operating income, 544, 547-548, 554, 571 Operating margin, 323 Operational risk, 394, 411 Operations, 12, 29, 49, 59, 75, 77, 101, 155-157, 162, 171, 176, 323-324, 328, 374, 390-391, 412, 441, 484, 497, 499-500, 535, 539, 541, 543, 573, 577, 587, 630, 632-633, 635, 637-638, 662, 680, 750 OPIC, 12, 513, 529-530, 532-536, 538-539, 542 Overseas Private Investment Corporation, 532-533 Opportunities, 19, 44, 138, 140, 187-188, 191-192, 196, 198, 201-203, 206, 213, 215-216, 266, 269, 281, 293, 323, 335, 383, 404, 407, 411, 435, 437, 439, 441-442, 448, 456, 459, 468, 557, 577, 602, 615, 627, 635, 659, 679, 689-690, 696, 761, 768 Opportunity cost, 342, 448, 570, 719, 721, 725, 741, 759 Opportunity costs, 691, 759 Option contract, 1, 15, 396, 711, 713, 716-718, 723-724, 726-727, 736, 740 Oracle, 88 Organization, 1, 3, 6, 8-10, 12, 17, 21, 31, 36, 38-39, 54, 61-62, 78-79, 101, 130, 145-146, 183, 262, 283-284, 316, 392, 422, 426, 501, 503, 512, 520, 532, 644, 672-674, 677, 683, 696, 744 Organization for Economic Cooperation and Development, 12, 38, 130, 145-146, 183, 262, 283-284, 316, 392, 532, 683 OECD, 12, 38, 130, 145-146, 183, 283-284, 316, 392, 532, 683 Organization of Petroleum Exporting Countries, 501 Organizations, 4-6, 8-9, 13, 15, 37, 39-40, 43-44, 50, 78, 381, 383, 392, 395, 402, 420, 422-423, 443, 505, 511, 530, 532, 539-540, 647, 662, 701 Orientation, 513 future, 513 performance, 513 OTC market, 432, 712, 714, 716 Outlays, 137, 409 Output, 1-2, 10, 21-22, 25, 43, 45, 142, 172, 311, 320, 363, 476, 536, 664 equilibrium, 311, 476 Outright forward transactions, 201 Outsourcing, 12, 21, 37, 45, 51, 760 overhead, 12, 556-557, 560, 565-566, 569, 572, 633, 680 Overhead costs, 680 overproduction, 42 Overseas Private Investment Corporation, 532-533 Over-the-counter market, 7, 55, 102, 382 Ownership, 1, 7, 11-12, 23, 27, 29, 31-34, 49-51, 117-118, 120-123, 126-130, 132, 135, 142, 418-419, 437, 440, 478, 481, 485, 499, 642-643, 645, 654 Ownership restrictions, 440, 478, 481, 499 P PACE, 41, 694 Packaging, 1, 14, 394 Pakistan, 63, 148, 424, 477-479, 499, 518, 665 Panama, 148-149, 173, 391, 518, 540 Par value, 521-522, 540 Paraguay, 148, 178, 518 Parameter, 6, 239, 335, 460 parentheses, 35, 137, 238-239, 332 Particular risk, 540, 734 Partnering, 391 Partnership, 659 Patent, 10, 14, 680 Patents, 46, 678 Paying agent, 380, 397 payroll, 12, 21 Pegged exchange rate system, 150, 153, 172, 175, 185 Per capita GDP, 362 Percentage changes, 89-92, 111-112, 115, 224, 226, 309, 334 percentages, 11, 110, 240, 430, 449, 560, 579, 601 Perception, 175, 654 Perfect market, 265 Performance, 13, 15, 24, 31-32, 41, 49, 146, 186, 234, 238, 244, 248, 260, 304, 316-319, 322, 327-328, 339-340, 343, 348, 354, 365-366, 404, 448, 458-459, 511, 513, 521, 617, 628, 630, 632-633, 684, 701, 749 market performance, 511 Performance bonds, 701 Performance evaluation, 684 performance reviews, 632 Permits, 520 Peru, 63, 148, 178, 417, 421, 427, 477, 499, 503, 518, 521-522, 662 Pharmaceutical industry, 630-631 Philadelphia Stock Exchange, 711 Philippines, 1, 23, 48, 63, 66, 131, 148, 178, 293, 360-361, 417, 421, 427, 477, 517-518 PHP, 63, 66, 360 Physical capital, 2, 597, 664 Piracy, 500 Place, 23, 29, 36, 55, 59, 69, 82, 99, 101-102, 106, 144, 147, 168, 176, 194, 213, 216, 267, 286-287, 307, 334, 358, 360, 364, 381, 392, 394, 399, 403, 407, 428, 433, 437, 453, 479-480, 490, 499, 509, 519, 528, 534, 536, 540, 557, 562, 622, 627, 644-645, 671, 675, 687, 690-691, 693, 695, 701-703, 706, 708, 713, 731, 749, 752 Plans, 179, 181, 395, 422, 449, 520, 542, 558, 567, 667, 706 business, 667 Plaza Accord, 164 Poland, 39, 63, 243, 273, 284, 417, 421, 427, 477, 500, 518, 521 GDP, 284, 421, 521 Policies, 1, 9, 11-12, 16, 27, 36-39, 44-46, 50, 52, 117, 135, 140, 153, 157-158, 164-166, 170, 177, 181-182, 186, 295, 325, 353, 355-357, 454, 456, 501, 503, 513, 515-517, 535-536, 538, 547, 615, 622, 632, 636, 638-639, 643, 647, 655, 665, 670, 680-682, 684, 688, 701, 706, 724, 740 limited, 37, 456, 655 participating, 166, 182 valued, 701 policy statements, 638 Political environment, 4, 497, 539 country risk, 4, 497, 539 Political risk, 4, 11-13, 201, 205-206, 215, 397, 481, 497-542, 654, 657, 661, 679 around the world, 511 defined, 517, 530 management of, 13, 507 types of, 397, 513, 521, 526, 533-535, 540 Political risks, 335, 506, 511-513, 530, 539, 647, 649, 655, 657, 661, 679 Politics, 48, 180, 500, 515 Poor countries, 44, 50 Popular culture, 44 Population, 46, 140-141, 364, 514, 520 Portfolio, 2-3, 5-8, 11-12, 15-17, 40, 70, 82, 105, 107, 132, 134, 155, 158, 162-163, 186, 188, 217, 220, 226, 229-232, 238-239, 250-252, 257-258, 329, 359, 362, 367, 393-394, 424, 444, 448, 453-455, 457, 459-469, 472-474, 478-484, 487-493, 496, 544, 579, 600, 612, 615, 652, 701, 765, 769 Model, 2, 6-8, 11, 230, 250, 362, 394, 466, 478, 481, 487-493, 612 Portfolio analysis, 15, 701 Portfolio investment, 132, 158 Portugal, 39, 148, 182-183, 284, 358, 417, 427-428, 455-456, 483, 498, 518 Pound sterling, 115, 157, 197 Poverty, 17, 36-37, 44 globalization and, 36-37, 44 Power, 1, 7, 9-10, 12-14, 16, 32, 39, 42, 47, 60, 82-83, 169, 181, 183, 211, 239, 259-294, 295, 297-299, 302, 309, 315, 330-333, 340, 343, 347-348, 358, 365, 386, 392, 394, 429, 469-470, 482-483, 499, 512-513, 515, 536, 538, 560, 586, 594-596, 660, 664, 687 PPP, 13, 260, 264-266, 269-290, 292-294, 298, 330, 332-335, 340, 342, 347-348, 352, 357, 363-365, 470, 596 Preferential trade agreements, 41 Premium, 2, 4-6, 8, 11-12, 14, 88, 110-111, 114-115, 192-193, 207, 215-217, 228-232, 234-241, 244-248, 250-253, 287, 332-333, 352-353, 363, 448, 462, 466, 468, 471-473, 475-476, 479, 482-483, 486-493, 506, 526-527, 529-530, 532, 535-536, 538, 544, 561, 589, 592, 612, 614-616, 628, 632, 636-637, 683, 710-711, 714, 718, 723-724, 727, 729, 735, 738, 744, 750, 757 forward, 4, 8, 12, 14, 88, 110-111, 114-115, 192-193, 207, 215-217, 228, 230-232, 234-241, 244-248, 250-253, 287, 332-333, 352, 363, 471, 476, 592, 614-616, 636-637, 710, 714, 718, 723-724, 729, 735, 738 Premiums, 4, 15, 109-111, 115, 187, 192, 207, 209, 213, 228-229, 231-232, 234, 236-239, 242, 244-246, 248, 252, 335, 353, 363, 391, 420, 470, 475-476, 480, 486-487, 526-527, 530, 588, 715, 724, 735, 738, 741, 747, 750 bond, 4, 15, 209, 213, 232, 335, 420, 530, 588, 747, 750 earned, 470, 738 gross, 335, 487, 747 payment of, 115 pure, 213, 391, 588 return of, 15, 192, 213, 244 single, 15, 213, 236 Present value, 1, 10, 12-13, 15, 17, 139, 190-191, 208-211, 213, 215-216, 233, 297, 302, 327, 386, 401-402, 409, 411, 440, 448, 486, 507-508, 521-523, 535, 541, 543-545, 548-551, 553, 556-557, 561-562, 565-572, 577-578, 580-581, 584-586, 591-595, 599, 604, 606, 611, 615, 618-620, 636, 645, 652, 679, 687, 690, 730, 746-747, 758-759, 762-765, 767 interest rates and, 190, 208-209, 215, 401, 571, 747, 759, 765, 767 presentations, 62, 119, 123, 128, 142, 287, 548 Presidential elections, 528 press releases, 423 Price, 1-7, 9-10, 12-17, 23-24, 29-32, 36, 54-55, 59, 62-67, 70-73, 80-81, 84-85, 96-103, 105, 107, 109-111, 114-115, 139, 143, 155, 158-161, 166-168, 182-183, 186, 190, 194-195, 200, 203, 206, 210-212, 216-218, 221, 260-277, 280-283, 285, 288-294, 295-311, 313-317, 320, 325-328, 330, 339, 341, 345, 347-348, 350, 358, 361-362, 366, 372, 382, 384-385, 401, 404, 408-409, 416, 418, 423-426, 434-437, 439-440, 443-445, 466, 469, 479-480, 487, 493, 501, 504-506, 521-524, 527-528, 540, 545, 547, 554, 556, 558, 560, 567, 570, 573, 589-590, 596, 614, 616, 628, 630, 632-633, 638, 643-644, 651, 654, 658, 661, 664, 671, 681-686, 688-691, 693-696, 698, 699-704, 706-708, 711-714, 716-719, 721, 723-741, 751 defined, 6, 31, 166, 274, 288-289, 292, 299, 345, 424, 469, 596, 664, 737 economic factors, 339, 487 international pricing, 493 marketing strategy and, 325 price changes, 299, 316 Price changes, 299, 316 Price controls, 506 Price effects, 439-440 Price level, 5, 9, 13-14, 101, 158, 261, 263-265, 271-272, 275, 280-283, 285, 289, 292-293, 295-297, 305, 307-308, 317, 330, 469, 596 Price range, 437 Prices, 2-3, 5-6, 8-11, 13, 15-16, 25-26, 32, 40-43, 47, 49, 54, 57-62, 64, 66, 68-70, 75, 79-80, 84, 101-102, 105, 107-108, 110, 114-115, 131, 133, 138-140, 157-158, 161-162, 165, 169-170, 177, 182-183, 190, 194-195, 201, 206, 209-211, 214-217, 227, 243, 250, 253, 258, 260-270, 272-273, 275-276, 280-283, 288, 290-294, 295-297, 301, 303-307, 310, 313, 316, 319, 324-328, 329-330, 334, 338, 342-343, 348, 353, 356-357, 366, 372, 380, 382, 393, 401, 407, 416, 423-426, 428, 433, 435-436, 439-440, 443-445, 459, 468, 475, 480, 490, 493, 498, 501, 505, 511, 521, 525, 547, 555-556, 558, 560, 570, 573, 599, 628, 630-632, 645-646, 660, 665-666, 670, 678, 681-686, 689, 693-698, 700-704, 710-711, 714-716, 718, 725-726, 730-731, 733-739, 741, 751-752, 761, 765-767 auction, 268, 423, 425, 443 changes in demand and, 80 controls on, 16, 158 demand and, 58, 80, 158, 161 equilibrium, 115, 161, 165, 169-170, 194, 215, 253, 258, 282, 292, 342-343, 356, 423, 445, 459, 468, 475, 480, 490, 493, 631, 694 flexible, 6, 80, 84, 158, 162, 183, 342 inflation and, 101, 307, 343, 498, 560, 599 input, 324, 327, 357 maximum, 423, 570, 714, 718, 725-726, 739 minimum, 8, 10-11, 16, 40, 105, 393, 423, 697, 700, 702, 737, 741 retail, 54, 57-60, 105, 243, 267, 305, 307, 343, 382, 407, 424, 459, 558, 573, 683, 694, 700, 716 sticky, 11, 15, 268, 342 trade and, 9, 16, 41, 47, 49, 182, 253, 366, 443, 700 wages and, 356, 547 Pricing, 1-2, 7, 9, 13, 38, 60-61, 210, 230, 250, 260, 267, 295, 297, 304, 310, 315, 320, 323, 325-328, 334, 338, 362, 364, 370, 424, 435, 785 445, 466, 473, 485, 487, 489, 493, 511, 541-542, 547, 555, 557, 612, 633, 656, 670, 681-686, 689, 697-698, 703, 734, 741, 750, 752, 768, 771 cost-plus, 683 dynamic, 310, 323, 493, 542 environment and, 445 new product, 326 payment, 2, 13, 210, 364, 424, 557, 689, 752 strategy, 60, 250, 320, 323, 325, 633, 686, 734, 741 value, 1, 7, 9, 13, 210, 230, 260, 297, 304, 315, 327, 362, 370, 424, 445, 466, 473, 487, 489, 493, 511, 541, 547, 555, 557, 612, 633, 656, 670, 683-684, 686, 697, 703, 734, 741, 750, 752, 768 Principal, 1-2, 4-5, 9, 12, 14, 30, 32, 145, 188-192, 194, 197, 200, 207-211, 213, 215-216, 220, 223-224, 373-375, 380, 382-383, 385-386, 397, 401-403, 405, 411-412, 498, 521, 525-526, 543, 546, 550, 552-553, 557, 567, 602-606, 622-623, 634, 655, 660, 687, 694, 737, 744-746, 748, 750-752, 754-759, 763-767, 769-770 Principles, 8, 130, 138, 146, 432, 466, 578, 609, 626-627, 639, 697 Principles of Political Economy and Taxation, 138, 146 Private banks, 660 Private exchanges, 422 Private firm, 498 Private insurance, 534 Private insurers, 533-534 types of, 533-534 Private investors, 162, 550 Private placement, 13-14, 377, 380, 432, 537 Private sector, 12-13, 33, 123-124, 127, 137, 160-161, 175, 359, 393, 660, 751 Privatization, 41, 44, 428, 441 Probability, 3-5, 7, 11-13, 16, 91-94, 111, 114, 152-153, 176, 201, 217, 222-224, 228-229, 247, 249-253, 256, 356-357, 363, 394, 403, 453, 498, 504, 507-510, 512, 523-524, 526-528, 530-531, 535-536, 540-541, 551, 568, 606-608, 612, 618, 623-625, 627, 630-631, 635, 637, 648, 661, 677, 686, 690-691, 698, 720, 723, 725, 728, 730-732 insurance and, 536 objective, 512 subjective, 224 Procyclical, 376 Product development, 325, 327 marketing strategy, 325 Product development strategies, 327 Product quality, 27 Production, 3, 11, 20, 29-30, 42-45, 48-49, 143, 267, 270, 295-296, 305-307, 309, 311, 313-315, 319-320, 323-328, 340, 355, 491, 497, 501, 511, 516, 521, 535, 537-538, 543, 546, 556-557, 573, 587, 642-643, 647-648, 650, 660, 671-673, 675, 686, 688, 693, 696-697, 760-761 centralized, 3, 573, 672-673, 696-697 globalization of, 43-44 national, 11, 29, 48, 143 Production costs, 305-306, 309, 511, 693 production operations, 324 Production planning, 696 Productivity, 46, 51, 142, 184, 281, 294, 335, 358, 547, 559, 761 labor, 46, 294, 547 Products, 6, 9-10, 20, 27, 37, 44, 46, 50, 139, 159, 165, 178, 260, 266, 268-269, 297, 299, 301, 303, 316, 323-327, 329, 362, 372, 374, 407-408, 423, 442, 497, 501, 530, 533, 537, 543, 554, 557, 559, 571-572, 585, 601, 630, 655, 660, 664-665, 671, 675, 678, 683-684, 687-688, 696, 700, 718, 734, 754, 757 defined, 6, 299, 442, 530, 571, 664 development of, 9, 37, 533, 630 levels of, 301 Professionals, 241, 245, 351 Profit, 5, 8, 12, 14, 40, 54, 57, 59, 67, 69-71, 73-74, 84, 100, 169, 175, 189-190, 194-195, 201, 203, 206, 215-216, 221-222, 227, 230-231, 252, 264-268, 270, 274, 293, 295-296, 300, 304-307, 310-311, 313-314, 317-323, 325-326, 349, 353-354, 356, 364, 423, 425, 533, 545-548, 557, 561-563, 565-567, 570-571, 590, 597, 613-614, 616-617, 620, 786 647, 683-685, 693, 695, 699, 701-703, 710, 712-713, 717, 727, 733, 747, 757-760, 768 definition of, 227 Profits, 1-2, 9-15, 43, 54, 57, 60, 67-70, 74-75, 85, 87, 100, 169, 187, 190, 201, 203-204, 206, 215, 221-222, 227-228, 230-231, 243, 250, 252, 270, 295-296, 299-300, 302-304, 306, 313, 315, 317, 319-320, 322-325, 327-328, 337, 339, 350-354, 362, 373-374, 377, 386, 394, 410, 482, 497, 499, 516, 532, 544, 546, 556-557, 566-567, 569-572, 589, 592-593, 595, 597-598, 600-601, 613-614, 616, 628, 630-631, 637, 671-672, 679-680, 683, 686-687, 691, 693, 696-697, 699, 701-704, 707, 739, 751 Project cash flows, 590 Promotional activities, 434 Promotional strategies, 325 prompting, 166 Property, 5, 7, 10-11, 14, 16-17, 23, 38, 157, 256, 341, 497, 512, 546, 548, 571 damage, 512 risks, 10, 14, 23, 497, 512 Property rights, 38, 512 proposals, 503 Protection, 2, 4, 31, 33, 42, 44, 51, 395, 431, 440, 445, 481, 485, 519-520, 525, 532, 534, 727, 747, 769 Protectionism, 42, 48, 51, 661 Protectionist policies, 117 tariffs, 117 Psychology, 353 Public choice, 186 Public Company Accounting Oversight Board, 33 Public offering, 379, 399, 416, 433-434 advantages and disadvantages of, 416 Public relations, 680 Publicity, 433, 441, 686 Publicly held corporation, 613-614 Purchasing, 1, 7, 9-10, 12-14, 16, 71, 107, 115, 130, 139, 145, 169, 181, 227, 259-294, 295, 298, 302, 309, 330-333, 347, 358, 365, 448, 469-470, 554, 559-560, 569, 591, 595-596, 617, 642, 665, 671, 684, 703, 714, 718-719, 723-725, 727, 733, 735, 737, 739 definition of, 227, 285, 288, 290 Purchasing power, 1, 7, 9-10, 12-14, 16, 169, 181, 259-294, 295, 298, 302, 309, 330-333, 347, 358, 365, 469-470, 560, 595-596 Purchasing power parity, 1, 10, 13-14, 259-294, 298, 330, 332-333, 347, 365, 469-470, 560, 595-596 defined, 274, 288-289, 292, 469-470, 596 evaluating, 260 PPP, 13, 260, 264-266, 269-290, 292-294, 298, 330, 332-333, 347, 365, 470, 596 Pure competition, 267 purpose, 2, 13, 84, 114, 257, 422, 440, 670, 695, 701, 729, 739, 752 specific, 114, 739 Put option, 7, 13, 711-713, 716, 719-720, 723-725, 727, 729-740 Q Qatar, 35, 148, 518, 665 Quality, 27, 38, 43-44, 229, 269-270, 303-304, 326, 335-338, 362-363, 372, 393-394, 397-398, 403, 429, 440-441, 445, 482, 485, 500, 514-517, 521, 552, 556, 558, 571, 610, 613, 628, 634, 637, 662, 708, 724-726, 739, 751 Quality standards, 27, 558 Quantity demanded, 5-6 Quiet period, 113 Quota, 420 Quotas, 6, 20, 37, 42, 266, 280, 292, 686 import, 6, 686 quotations, 62, 65, 197-198, 201, 422, 716, 754, 763 quoting, 64-65, 110, 215, 382, 692, 750, 756, 759, 761, 763, 770 R Race, 45, 392 Railroads, 421 Rate of return, 1, 16, 69, 207, 213, 219, 223, 252, 265, 330-331, 346, 401-402, 409, 411, 448-449, 467-469, 480-482, 488-489, 546, 549, 556, 571, 578-585, 588, 593, 595, 597-599, 601, 610-612, 615, 671-672, 679, 756, 759 internal, 1, 16, 213, 265, 401-402, 409, 411, 756, 759 Rates, 1, 3-8, 10, 13-17, 24, 27, 36-38, 40, 42-43, 49, 54-55, 58, 62, 64-74, 79-85, 87-94, 96, 98, 101-102, 107-112, 114-115, 117, 124, 132-133, 135, 138-139, 141-143, 145-146, 147-154, 156, 158, 162, 164-166, 168, 170, 172-176, 178-186, 187, 189-217, 219, 221-222, 224, 226-229, 231-253, 256, 259-294, 295, 297, 301-303, 305-307, 309-310, 316, 320, 322-328, 329-337, 339-355, 357-364, 366-367, 375-376, 383-385, 395-396, 399, 401-403, 405-406, 408-413, 420, 426, 435, 441, 449-452, 454, 456, 458-459, 469-473, 476, 480, 486-489, 499, 501-502, 511, 516, 522-523, 525-527, 530-531, 533, 535, 539-541, 544, 547, 549-550, 553, 555-556, 558, 571, 573, 582, 584-589, 591-596, 602, 604-605, 609, 611, 614, 616-621, 623-626, 630-633, 635-638, 659-661, 666, 672-675, 678, 682, 684, 686-697, 701, 704, 707, 709-711, 719-722, 724-725, 728, 730-735, 737, 739-741, 743, 747-771 definition of, 135, 227, 285, 288, 290 discriminatory, 533 excessive, 27, 43, 74, 395, 672 gross, 7-8, 16, 135, 143, 181, 283, 335, 346, 406, 487, 547, 550, 684, 696, 747 reasonable, 91-92, 174, 179, 227, 256, 281, 287, 307, 331, 342, 458, 469, 472, 486, 631, 660, 710 Rating, 4, 32, 394, 398, 402-405, 412, 511-515, 518-519, 530-531, 536-537, 610, 647-648, 655, 748 Rating agencies, 32, 403-404, 518, 610 Ratio analysis, 13, 555-556 Rational expectations, 13, 235-236, 246-247, 251 Ratios, 13, 21, 27, 146, 243-244, 251-252, 261, 275, 290, 420-422, 453, 457-458, 465, 487, 498, 515, 556, 578, 600, 634 Raw materials, 23, 125, 547, 585, 671, 686, 693, 696 emerging markets, 23 RBC, 400 Reach, 175, 436, 702 Real estate, 2, 14, 23, 43, 48, 118, 281, 372, 387, 420, 472, 687 Real exchange rates, 14, 16, 259-294, 295, 297, 301, 303, 307, 310, 316, 320, 322-324, 327, 340, 342-346, 366, 469, 555, 587, 636 Real interest rate, 6-7, 331, 334-335, 343-347, 362-363, 367, 469, 480, 589, 596 Real interest rates, 10, 331, 334-335, 343-347, 362, 366, 376, 470, 501-502, 588-589, 596 Real value, 302, 311, 317, 342, 345, 687 reasonable assurance, 660 Receivables, 11, 14, 24, 185, 471, 655, 659, 666, 676, 688, 707, 709, 723, 727-728, 737-738 and payables, 723 Recession, 23, 25, 43, 46, 49, 126, 138, 153, 183-184, 295, 359, 362, 374, 497, 501, 661 Recessions, 42, 44, 50, 138, 183, 454, 748-749 Reciprocity, 665 recommendations, 38, 51, 118, 350, 433, 506 Reconciliation, 432, 545 Records, 2, 4, 9, 12, 105, 117-118, 121, 124, 127, 129, 132, 135, 142-143, 151, 155, 343, 346, 354, 379, 437 Recruiting, 440 Reform, 6, 395, 481, 493 Refunds, 624, 638 Regional trade agreements, 21 Registration statement, 379, 433 Regression analysis, 14, 235, 238, 246, 335-336, 348, 351, 354, 363, 474, 531 Regulation, 12, 36-37, 40, 300, 377, 391-393, 395, 411, 422, 424-425, 499, 644, 748 federal, 391-392, 499 state, 40, 422 Regulations, 2, 6, 9, 20, 24, 33, 158, 196, 292, 380-381, 388, 391-393, 410-411, 419, 430-431, 433, 499, 512, 556, 681-682, 697, 744-745, 748, 768 global, 9, 20, 158, 380, 388, 393, 410-411, 431 Regulatory arbitrage, 24, 395 Regulatory environment, 39, 513 Reinvestment, 581, 597 Relationships, 10, 45, 59, 152, 324, 332, 334, 336, 363, 391, 532, 539, 642, 653, 655, 730 Remittances, 679 Renminbi, 204, 420, 706, 743 Reorganization, 361 Repatriation, 440, 480, 513, 516, 557, 672, 679-680 Repatriation of profits, 516, 557 Repetition, 36 Reporting system, 132, 672 reports, 3, 33, 58, 133, 154, 156, 161, 179, 183, 236, 239, 244, 362, 364, 378, 387, 455, 458, 476-477, 485, 518, 538, 629, 632-635, 659, 673-674, 677, 704, 738 accuracy of, 362 close of, 674 online, 58 types of, 161, 633, 659 Representativeness, 245 Required reserves, 14, 155, 171 Resale, 265, 310, 650, 683 research, 52, 73, 115, 165, 183, 246, 253, 269, 294, 320, 325, 340, 353, 364, 413, 425-426, 428-431, 437, 439-440, 442, 445, 455, 457, 471, 476, 478, 486-487, 492, 504, 531, 542, 574, 609, 612, 627, 630-631, 637, 680, 701, 749 planning, 631 primary, 440 secondary, 504 Research and development, 609, 627, 630-631, 680 cost of, 609, 627 Reserve requirements, 161, 171, 196, 391-392 Reserves, 6-7, 9, 11-12, 14, 32, 48, 118-119, 123-124, 128-130, 134, 140-141, 143-145, 147, 155-161, 165-169, 171, 176, 178, 184-186, 206, 274-275, 356, 359, 361-362, 365, 386, 392, 441, 498, 513, 515, 525-526, 533, 650, 656, 686, 695 case, 48, 119, 123-124, 128, 145, 157, 161, 167, 176, 186, 206, 274-275, 365, 441, 498, 513, 515, 526, 533 definition of, 118 initial, 9, 356, 533 loss, 140, 165, 169, 176, 361, 498, 695 mean, 7, 11-12, 14, 144, 169, 362 policy, 6, 11, 140-141, 155, 158-159, 161, 171, 176, 185, 359, 513, 686 Resources, 14, 37, 47, 60, 143, 157, 164, 183, 232, 275, 329, 442, 503-504, 520, 532, 538, 541, 550, 571, 608, 660, 667, 671-672, 675, 696, 771 Responsibility, 27, 31-32, 319, 426, 538, 632-633, 650-651, 653, 659 Restricted, 39, 132, 423, 439-440, 459, 503 Restrictions, 2, 7, 10, 23, 114, 148, 176, 182, 215, 377, 381, 387, 419-420, 437, 440, 466, 478, 480-481, 499-501, 506, 672, 679, 687, 768 government restrictions, 2, 148, 672 import restrictions, 506 Retail prices, 267, 558, 573, 694 Retailers, 268 Retained earnings, 371, 395, 627, 643 Retirement, 30, 40, 422, 600 Return on assets, 346 Return on equity, 469, 476, 582, 610 Return on investment, 14, 549, 577, 596-599, 601, 609 Reuters, 58, 65, 70, 75, 201, 225, 715 Revaluation, 14, 80, 88 revaluations, 80, 92, 153 Revenue, 2, 5, 10, 40, 43, 68-69, 74, 96, 115, 194-195, 198-199, 209, 251, 266, 296-300, 302-304, 307-309, 311-312, 314-315, 317-320, 324-325, 362, 408, 537, 544, 547, 558-561, 565-567, 570-571, 573, 585, 613, 619, 621, 624, 629-630, 632, 637, 655, 670-671, 683, 693-694, 711-714, 717, 719-720, 723-725, 727-731, 733-736, 739-741, 745, 748, 751, 757, 765 marginal, 10, 311-312, 314-315, 693-694 Revenues, 1, 5, 10, 12, 15, 40, 43, 71, 74, 87, 100, 103-104, 115, 138, 157, 169, 228, 300, 303-304, 311, 316-317, 320, 322, 324-326, 372-373, 376, 404, 408-409, 442, 497, 501, 508, 512, 519, 527, 537, 544, 547, 561, 609, 622, 630, 634, 681, 685, 694, 719-720, 723, 736, 738, 748-749 revision, 336, 433 Rewards, 31, 295, 734 Ricardian equivalence, 14, 138 Risk, 2, 4-16, 24-26, 29, 31-32, 40-42, 48, 50-51, 54, 57, 60, 67, 69, 73, 76-78, 84, 87-115, 134, 140, 142, 147, 150-151, 153-154, 157, 161, 170, 172, 184-185, 187-190, 193-194, 197-198, 200-209, 215-218, 219-253, 258, 267, 270, 289, 295-328, 329-330, 335, 353, 359, 364, 372-376, 383-384, 388, 393-400, 402-412, 439, 444, 448-449, 451-455, 457-476, 478-484, 486-493, 496, 497-542, 544, 551, 561, 568, 578, 581, 585-586, 588-589, 592-593, 602-603, 605-606, 611-612, 613-639, 643, 646-648, 654, 656-659, 661-662, 666, 674, 678-679, 683, 686, 688-693, 696, 698, 699-702, 706-710, 714, 716-719, 721-723, 725, 727, 734, 738-741, 743-745, 747-752, 755, 757, 759-760, 765, 768-770 asset, 2, 5, 7, 9, 14-15, 25-26, 40-41, 89, 95, 98-99, 101, 112, 114, 142, 188-189, 207-209, 216, 219-220, 227-232, 234, 242, 250-251, 253, 258, 270, 324, 353, 373, 393-394, 448, 457, 460-469, 472-474, 480, 482, 489-493, 496, 505, 511, 541, 611-612, 614, 617, 619, 707-708, 717 business, 7, 9-10, 14, 16, 24, 31, 41-42, 51, 54, 57, 60, 76, 95, 98-100, 102, 105-106, 115, 142, 150, 153-154, 229, 233, 235, 246, 270, 297, 309, 323-324, 364, 388, 393, 400, 404, 410, 444, 454, 475, 482, 493, 499-500, 508, 510-511, 515, 532, 539, 541, 588, 612, 614, 630, 639, 654, 656-657, 661, 674, 678, 688, 693, 700-701, 710, 714, 743, 748-749, 752, 769 clean, 520, 646, 656, 666 commercial, 4, 7, 11, 57, 76, 161, 203, 226, 353, 388, 399, 502, 504-505, 521, 539, 631, 646-648, 657-659, 661, 666, 674, 699, 750, 752, 755 definition of, 227, 467 diversifiable, 229, 468, 479, 497, 511, 539, 544 enterprise, 88 financial, 2, 4-16, 24-26, 31-32, 40-42, 50-51, 54, 57, 60, 67, 73, 76-78, 87-89, 91-92, 98-99, 101, 106, 111-112, 115, 140, 142, 147, 150, 161, 184-185, 187, 197-198, 200-204, 206, 218, 219, 225, 229, 232, 235, 242-244, 247-248, 251-253, 295, 302, 323, 329, 359, 364, 372, 383, 388, 393-400, 403, 408, 410-412, 444, 466, 472, 475, 481, 484, 486-487, 489-490, 492-493, 497-498, 502, 511, 513-516, 534, 541-542, 544, 551, 568, 578, 589, 606, 612, 613-615, 622-623, 627-639, 646, 648, 654, 656-659, 661, 666, 674, 678, 686, 688, 696, 698, 699-700, 710, 727, 738, 743-745, 747-750, 755, 757, 759, 765, 768-769 fire, 26, 170, 203, 228, 233, 304-305, 693, 725, 740, 747 insurable, 532 insurance and, 506, 533, 536, 646 interest rate, 2, 4-10, 12-13, 15-16, 187-190, 193-194, 197-198, 200-209, 215-218, 219-221, 225-226, 228, 230, 232-235, 238, 240-242, 244-245, 248-253, 329-330, 335, 374-376, 384, 393, 396, 399-400, 402, 404-412, 448-449, 452, 469-472, 480, 488, 501, 504-505, 521, 523, 526, 540, 551, 561, 568, 586, 588-589, 592, 602-603, 605, 612, 613, 615, 636, 657, 690-691, 693, 718, 721, 723, 734, 739-741, 743-745, 747-752, 755, 757, 759-760, 765, 768-770 market, 2, 5-16, 24, 26, 32, 41-42, 50, 54, 57, 60, 67, 69, 73, 76-78, 84, 87-88, 91-92, 95, 97-115, 134, 140, 151, 153, 157, 161, 170, 172, 184-185, 187-190, 193-194, 197-198, 201-203, 205, 207-209, 215-218, 219-253, 258, 267, 270, 295, 298-299, 301-302, 310-318, 320, 324-328, 329, 335, 353, 359, 364, 372, 374-376, 383-384, 388, 393-396, 398-400, 402-405, 407, 409-411, 439, 444, 448-449, 451-455, 457-460, 462-463, 466-476, 478-484, 486-493, 497, 503-506, 511, 521, 528-534, 536-537, 539-542, 551, 568, 578, 585, 588-589, 592, 603, 612, 614-617, 619-621, 628, 631-633, 635-638, 643, 648, 654, 656, 658, 661, 666, 674, 686, 689, 691, 693, 696, 698, 699-702, 706-710, 714, 716-719, 721-722, 725, 727, 734, 738-739, 743-745, 747, 749-752, 757, 760, 765, 768-769 objective, 10, 41, 151, 397, 512-513, 515, 533, 693, 727 operational, 301, 329, 394, 411, 633, 635 personal, 25, 317, 734 political, 4, 6, 8, 11-13, 42, 48, 51, 88, 170, 201, 205-206, 215, 335, 397, 404, 479, 481, 483, 497-542, 647, 654, 657, 659, 661, 679, 683, 741 property, 5, 7, 10-11, 14, 16, 157, 497, 512 pure, 13, 67, 100, 151, 184, 215-217, 221, 267, 448, 511, 516, 531, 588 speculative, 8, 40, 153, 172, 204-205, 219, 222, 226, 248, 250, 267, 359, 364, 403, 480, 616, 633-634, 679, 699, 723, 727, 741, 743, 747 strategic, 12, 15, 48, 444, 448, 630-631 subjective, 224, 513, 515 systemic, 25, 78, 393, 411 underwriting, 16, 399, 520 Risk management, 11, 14, 24, 101, 104, 388, 531, 585, 613-639, 699, 717, 743, 745, 749 benefits of, 101, 613, 627, 636 commercial, 11, 388, 631, 699 financial, 11, 14, 24, 101, 388, 613-615, 622-623, 627-639, 699, 743, 745, 749 techniques, 24 Risk managers, 32, 202, 693, 701, 709 Risk of loss, 5, 8, 40, 94, 98-99, 225, 330, 506, 719, 722 Risk taking, 32, 228, 395 Risks, 9-10, 14, 23-24, 27, 32, 41-43, 49, 54, 85, 87-88, 95, 104, 115, 117, 147, 150-151, 184, 201, 203, 215, 219, 227-229, 243-244, 246, 252, 305, 323, 327, 329, 335, 348, 352, 376, 394, 397, 407, 449, 454, 456, 470-471, 476, 481-483, 487, 497, 506, 511-514, 527, 529-532, 534, 539, 572, 606, 614, 628, 632, 634, 636-637, 647, 649, 651, 655, 657-658, 660-661, 679, 686, 693, 699, 710, 714, 723, 734, 738-740, 743-744, 747, 751-752, 768, 770 counterparty risk, 714, 747 opinions of, 513 political risks, 335, 506, 511-513, 530, 539, 647, 649, 655, 657, 661, 679 Road show, 441 Role, 26, 30-31, 35, 39-40, 50, 56-59, 93, 106, 124, 130, 139-140, 147, 156, 167, 179, 181, 198, 260, 272, 328, 356-358, 377, 386, 393-395, 404, 411, 419, 433, 440-441, 445, 468-469, 477, 482, 484-485, 493, 531, 534, 539, 587, 658, 661, 687, 749, 768-769 Romania, 39, 148, 518, 664 Royalties, 10, 14, 27, 125, 499, 565, 569, 572, 678, 680, 695-696 franchising, 27 licensing, 10, 27, 572 Rumors, 169, 185 Russia, 19, 22, 42-43, 63, 106, 131, 148, 157, 207, 244, 273, 386, 417, 419, 421, 427, 435, 443, 477, 499-500, 511, 517, 534 Rwanda, 148, 178 S Salaries, 282-283, 294, 680 Salary, 233, 260, 282-283, 293 Sales, 2, 7-8, 14, 16, 27, 35, 103, 118, 124-125, 127-128, 142, 155, 203, 217, 270, 296-297, 299, 302, 305-307, 311, 313, 317-322, 324-327, 343, 346, 355, 364, 393, 399, 441, 527-528, 538, 546-547, 552, 554, 557-558, 567, 570-571, 573, 587, 617, 630, 632, 635, 654-655, 659, 671-672, 680-681, 685, 688, 692-693, 695-696, 698, 749, 757 Samples, 475 Sampling, 475, 490 Samurai bonds, 377 Sanctions, 501 SAP, 441 Sarbanes-Oxley Act, 14, 33, 50, 430-431, 445 Saudi Arabia, 63, 148, 273, 417, 427, 518 Saving, 8, 11-14, 27, 117, 135-138, 140-144, 146, 315, 346-347, 590, 625-626, 676, 678, 684 787 increase in, 13, 135, 141-142, 347, 684 investment and, 142, 347 Scandinavia, 42 scope, 19, 38, 113, 153 SDR, 15, 149, 167 special drawing right, 15, 149 Securities, 1, 4-5, 9-11, 13-17, 24-26, 32, 36, 56-59, 75-76, 132, 176, 184, 243, 248, 326, 355, 370-371, 377-380, 382, 384, 388, 392, 394, 399-402, 404, 407, 410-411, 422-424, 426, 431-433, 436-437, 439, 448, 452-453, 455, 464, 466-467, 469, 478-479, 482, 484, 487, 489, 491, 497, 521, 524-526, 530, 537, 545, 550, 571-572, 582, 609, 614, 635, 643, 670-671, 673, 696, 699, 701, 711, 743, 748 Securities and Exchange Commission, 378, 424, 537, 609, 635 Securitization, 1, 14, 24, 26-27, 394 Security, 2, 4, 7, 10, 14-16, 24, 39, 42, 48-49, 59, 187, 235, 377, 397, 399-400, 404, 407, 412-413, 422, 433, 436, 441, 453, 460, 466-467, 469-472, 474, 479, 489-490, 500, 505, 651, 741 globalization and, 24, 39, 42, 48-49 investing in, 10, 187, 413, 460, 479, 489 Segmentation, 445, 469, 478, 481-482, 493 defined, 469 Selection, 352, 493 Selection process, 352 Self-interest, 31, 353 Sellers, 7, 10, 35, 55, 57, 75, 167, 267, 643, 739, 747 Sensitivity, 14, 113, 473, 476-477, 490 sentences, 30, 423 SEP, 112, 174, 177, 202, 527, 715 September 11, 2001, 533 Service exports, 502 Service provider, 310 Services, 3-4, 6-13, 15-17, 19-21, 27, 36-39, 41-42, 45, 49-50, 54, 56, 59-60, 75, 78, 80, 117-118, 120-122, 124-126, 129-130, 132, 137, 142-143, 145, 161, 183, 261, 263, 266-268, 280-284, 286, 292, 301, 331, 338-339, 343, 354, 362, 378, 382, 388, 391, 398, 425-426, 431-432, 441-442, 499, 512-514, 532, 534, 539, 631, 643-644, 658-659, 663, 666-667, 670, 677-678, 680-681, 683, 688, 696, 761 international markets, 266, 292, 644 levels of, 78, 137, 281, 301 Servicing the debt, 519 Shareholder, 1, 29, 31-32, 35, 40, 49-50, 434, 437-439, 441-442, 445, 482, 506, 557, 606, 609 Shareholders, 1, 3, 10, 16, 29-32, 36, 40, 50, 100, 295, 341, 416, 431, 435, 440, 442-443, 445, 482, 487, 511, 529, 544, 546, 556, 570-571, 598, 601, 606, 608, 612, 644, 662, 671-672, 678-679 Shenzhen Stock Exchange, 423 shipping, 2-4, 8, 11-12, 14, 132, 143, 265, 337-338, 642, 644-647, 650, 653-654, 660, 665-666 Ships, 500, 643, 652-653 Shopping center, 644 Shortage, 203-204, 397, 693 Short-term debt, 374, 377, 396, 513, 670, 749 Short-term financing, 525, 672, 696 Signaling, 26, 140, 350, 358, 639 SIMPLE, 13, 80, 96, 100-101, 119, 150, 152, 192, 213, 230, 241, 249, 256, 280, 305, 334, 337, 342, 344, 350-352, 354, 363, 393-394, 445, 460-461, 481, 503-504, 506-507, 520, 523, 529, 597, 618, 621-622, 690-691, 732 Singapore, 1, 21-22, 25, 35, 55-56, 63, 66, 78, 131, 148-149, 178, 198, 310, 360, 370, 383, 391, 417, 421-422, 427, 455, 483, 499, 516-518, 667 Single market, 23, 39 SIR, 649 Size, 12, 15, 21, 33, 37, 54, 56-57, 73, 78, 85, 103, 159, 162-164, 166, 201, 249, 272, 339, 372, 378-380, 389, 397-398, 413, 416, 419, 423, 426, 434, 441, 487-488, 493, 571, 684, 702-703, 706-707, 712-715, 738, 743, 746, 756 MERCOSUR, 21 Skilled labor, 46, 552 Skills, 23, 366, 678 Slogans, 45 Slope, 238-240, 244-246, 251-252, 277, 331, 335, 788 461-462, 465, 474 Slovakia, 182, 518 Small business, 661 Small Business Administration, 661 SOAP, 216 Social activities, 8, 19, 49 Social safety net, 140 Social Security, 42, 422 Societies, 516 Society, 15, 20, 50, 75 software, 19, 45, 402, 441, 475, 492, 613, 683, 701 outsourcing, 45 Solvency, 26, 205, 394, 513 Sourcing, 323-325, 404, 407 emerging markets, 404 South Africa, 35, 63, 78, 148-149, 185, 273, 417, 419, 421-422, 427, 476-477, 518 South America, 21, 49 franchising, 49 South Korea, 63, 78, 131, 158, 273, 380 Sovereign wealth funds, 40 Sovereignty, 41 Soviet Union, 154, 358, 662-664, 688 Spain, 19, 23, 35, 39, 148, 176, 182-183, 260, 284, 358, 377, 389, 417, 421-422, 426-427, 455-456, 476, 483, 518, 543, 557-564, 566-570, 572, 673, 697, 750 Special drawing right, 15, 65, 149 Special events, 433 Special interest, 329 Specialization, 400, 761 Speculation, 59, 75, 85, 100, 166, 176, 219-253, 267, 357, 695, 723, 749, 771 Speculators, 100, 170, 172, 175-176, 185, 227, 235, 249-251, 356-357, 362, 492, 702, 706 Spot exchange rates, 8, 15, 65, 87, 89, 92, 109, 200, 213, 217, 251, 253, 591-592, 624, 637, 690, 719, 730 Spot market, 15, 57, 84, 88, 97, 99-103, 105, 107-108, 111, 114, 190, 192-194, 198, 207, 209, 220-221, 231, 616, 619-621, 636, 707, 709, 712-713, 718-719, 721-722, 724-725, 727-730, 766 Spot rate, 4-5, 8, 10, 13, 15-16, 88-89, 93, 96-100, 104, 106, 110-111, 114, 152, 175, 177, 188, 190, 193-194, 203, 205-206, 215, 217, 220-221, 223, 225-228, 230-232, 234, 239, 241, 246-252, 332-333, 336, 338-340, 348-349, 362, 405, 408, 412, 591, 594, 605, 615-616, 620, 624, 637-638, 689-690, 704, 707-709, 712, 717-721, 723, 726-727, 730-731, 733, 735-737, 739-741, 765, 767 Spot rates, 13, 88, 92, 96, 107-108, 110, 114, 174-175, 187, 203, 213, 228, 231, 235, 247-248, 250, 329, 412, 522, 540, 588, 591-592, 614, 618, 728, 732, 734-735 spreadsheets, 408-409, 555 Stabilization arrangements, 148 Stakeholders, 29, 49, 622 Standard deviation, 2-3, 11, 14-15, 17, 89-91, 93, 111-112, 115, 150, 152, 222-223, 225-226, 229, 243-244, 250, 252, 257-258, 269, 337, 450, 460-465, 476, 489-490, 496, 615, 677-678, 697 Standard of living, 260, 283 Standardization, 62 Standards of living, 12, 38, 284 Statement of cash flows, 659 statistics, 37, 73, 89, 115, 117, 124-125, 127, 130-131, 139, 145-146, 161, 186, 235, 246, 276-279, 293-294, 316, 328, 332, 345, 348, 359, 361, 363-364, 378, 383, 421, 429, 482, 492-493, 513, 515 analyzing, 246, 276 Status, 37, 172, 178, 413, 419, 470, 513, 518, 646 Steam, 387 Stock, 1, 3, 5-6, 8-10, 13, 17, 23-24, 26, 29-34, 36, 40-41, 55-56, 81, 84, 99, 121, 124, 127-128, 130, 135, 138, 143, 145, 157, 227, 229, 244, 251-253, 339, 341, 357, 366, 372, 380, 385, 390, 411, 416-441, 443-445, 448-450, 452-456, 458-459, 463, 466, 469, 472, 474-476, 478-479, 481-482, 484-487, 489-493, 511, 528, 555-556, 559, 573, 597, 609-610, 632, 670-671, 694-696, 701, 711-712, 716-717 Stock exchanges, 5, 416-420, 422-423, 436, 443, 448 Stock markets, 6, 8, 31, 33, 56, 244, 253, 357, 416, 419-423, 436, 443, 445, 449, 454, 459, 475, 482, 484-486, 490, 492-493 Stockholders, 29, 31, 436, 546, 552, 556, 577, 579-584, 606-612, 613, 615, 622, 627-629, 634, 637-638 Storefront, 573 Stories, 60, 227, 233 Strategic alliance, 15, 442-444 Strategic alliances, 442, 445 Strategic planning, 338, 362 Strategies, 74, 96, 207-208, 234, 241-244, 250, 299, 310, 323, 325, 327, 329, 348, 350, 354-355, 363, 531, 574, 643, 686, 695, 719-720, 722-723, 725-729, 735 competitive, 299, 310, 327, 643 corporate, 74, 363, 574, 735 Strategy, 8, 10-11, 23, 27, 29, 31-32, 49, 60, 97, 99, 174-175, 208-209, 221, 227, 234-235, 241-244, 246, 250, 253, 320, 323, 325, 347-348, 350, 352, 354, 365, 377, 396, 423, 433, 459, 531, 588, 621, 632-633, 686, 688, 695, 717, 719-720, 722, 724, 726-729, 734, 738, 740-741 combination, 354, 738 defined, 31 focus, 31, 60, 243, 246, 348, 365, 738 global, 8, 23, 27, 29, 32, 49, 60, 244, 531, 738 multinational, 10-11, 23, 27, 29, 31-32, 49, 209, 323, 459, 632, 686, 688 pull, 365 stability, 10, 175, 325, 741 Stress, 24, 204, 246, 348, 389, 395, 661 Strike price, 1, 5-6, 13, 15, 632, 711-714, 716-719, 721, 723-741 Strong currency, 175, 179 Students, 19, 64, 187, 614 Subprime mortgage crisis, 204 Subprime mortgages, 26, 390, 747 Subsidiaries, 1, 5, 21, 23, 27, 125, 260, 295, 316-319, 370, 372-373, 386, 388, 391-392, 410, 422, 499, 501, 538, 556, 563, 630, 633, 657, 679, 693, 744-745, 752, 769 Subsidies, 12, 20, 42, 46, 49, 167, 266, 506, 550, 553, 557, 568, 577, 602, 615, 625, 660, 666 Substitution, 1, 607, 611 Success, 23, 39, 59-60, 164, 171-172, 183, 339, 353, 361, 400, 442, 505, 538, 631, 658, 706 Sudan, 148 summarizing, 123, 244 Supply, 12, 50, 57-58, 69, 80, 117, 119, 155-163, 165, 167, 169, 176, 184-185, 304, 310, 342-343, 347, 358, 363, 372, 382, 386, 398-399, 442-443, 466-467, 480, 525, 631, 644, 661-664, 667, 683, 688, 700, 768 aggregate, 158, 160, 347 currency, 12, 50, 57-58, 69, 80, 117, 119, 155-162, 165, 167, 169, 176, 184-185, 304, 310, 342-343, 347, 358, 363, 372, 386, 399, 631, 662, 664, 688, 700, 768 excess, 57, 160-161, 165, 167, 184, 467, 480 long-run, 157, 163, 343, 347 of capital, 50, 158, 358, 443, 466, 480, 644 of money, 12, 155, 157, 165, 176, 342, 386, 663 Supply and demand, 117, 162, 347, 382, 443 Support, 8, 11, 15, 17, 29, 37-39, 74, 144, 175-176, 179, 275, 281, 342, 345, 348-350, 359, 422, 433, 526, 533-534, 610, 622, 634, 637, 662, 695, 749 Surplus, 8, 11, 15, 124-137, 139, 143-145, 165, 346-347, 674-675, 691-692 total, 8, 11, 124, 126-128, 134-137, 143-145, 674-675 surveys, 38, 118, 125, 147, 164, 186, 245, 370, 499, 613, 634, 637, 655, 661 Sustainability, 134, 146, 172, 498 Sweden, 33, 63, 76, 148, 242, 248, 284, 332, 345, 358, 393, 417, 421-422, 427, 455, 476, 483, 512, 518, 635, 697 GDP, 284, 421-422 Swiss franc, 64-67, 84, 107, 164-165, 202, 217, 243, 251, 274, 334, 350-351, 385, 473, 617, 624, 714-715, 721-723, 725-726, 734, 739-740, 745, 770 Switch trading, 15, 663-664, 666 Switzerland, 1, 17, 33, 35, 38, 55-56, 63, 65, 67, 76, 115, 146, 148, 204, 242, 273, 284, 332-334, 345, 379, 393, 417, 421, 427, 429, 432, 455, 476, 518, 657, 673, 721, 771 Syndication, 5, 383, 397, 402 system, 2-8, 10-13, 15-16, 24-27, 32-33, 36-38, 40, 47, 52, 58-59, 75-78, 80, 83-85, 88, 119, 124, 128, 132, 141-143, 145, 147, 149-156, 158, 161, 165-173, 175-179, 181-186, 217, 295, 316, 352-353, 355-357, 359, 361, 364-365, 372, 382, 388, 392-394, 397, 419, 422-426, 429, 432, 440, 443, 500-502, 507, 514-517, 525, 539, 610, 643-644, 661, 672-673, 675, 677, 686, 696-697, 701-702, 710, 768 Systematic risk, 2, 9, 15, 229-231, 244, 455, 468, 474, 479, 482-483, 486, 488, 511, 529, 615, 690 Systemic risk, 78, 393, 411 T Tables, 364, 379, 381, 400, 413, 557 Taiwan, 23, 63, 66, 273, 360, 417, 419, 421-422, 426-427, 477, 518 Tanzania, 148, 178 Target market, 409 Tariff, 20-21, 42, 266, 684-685, 698 Tariffs, 1, 8, 20-21, 42, 117, 139-140, 266, 268, 280, 292, 681, 684-685, 697 defined, 292, 697 European Union, 20-21 evolution of, 21, 117 Tax credit, 5, 8, 563-566, 679-680 Tax rates, 138, 441, 499, 623, 625-626, 636, 678, 682, 684 Tax revenues, 43, 138, 157, 609 economy and, 138, 157 Tax system, Tax treaties, 38 Taxation, 3, 12, 14, 38, 138, 146, 391, 493, 506, 516, 744 European Union, 38 Taxes, 5-6, 8, 11-14, 24, 46, 137-139, 143, 158, 183, 204-205, 215, 266, 347, 358, 380-381, 440-441, 466, 481, 499, 547-548, 550, 553, 556-557, 561-566, 571-572, 578-579, 583, 602, 605, 611, 613, 615, 622-626, 636-637, 670, 672, 678-682, 684-685, 696, 698, 744 consumption, 13, 137-138, 143, 347 corporate, 5, 14, 380-381, 440, 550, 553, 561, 564-565, 579, 605, 611, 622-623, 626, 636-637, 678, 680-682, 698 employment, 12, 46 estate, 14 flat, 205, 499, 550, 605, 623, 636-637 income, 5, 8, 11, 13-14, 137-139, 143, 183, 205, 547-548, 550, 556, 561, 563-566, 571, 579, 583, 602, 605, 611, 622-626, 636-637, 670, 678-682, 684-685, 696, 698 property, 5, 11, 14, 548, 571 revenues from, 561 sales, 8, 14, 441, 547, 557, 571, 672, 680-681, 685, 696, 698 withholding, 380-381, 557, 563-566, 572, 679-681, 684, 744 teams, 13, 41, 365 Technical analysis, 14-16, 329, 335-337, 348, 354, 362-363, 366-367 Technical forecasting, 348 Technology, 10, 12, 21, 23-24, 59-61, 125, 281, 347, 388, 426, 476, 491, 531-532, 557, 665, 678, 680, 761 advances in, 21, 24 information technology, 12, 21, 347 international investment, 10, 12 Telecommunications, 15, 27, 30, 75, 125, 197, 382, 398, 771 infrastructure, 398 telephone, 58, 75, 77, 305, 424, 432, 434, 485 Term bonds, 7, 345, 383, 752 Term loan, 6, 396, 642 Terminal value, 16, 549, 556, 561-562, 565-568, 570-572, 576, 577, 591, 596-601, 611 Terminology, 65, 82, 109, 117-118, 127, 196, 210, 271, 348, 394, 711-712 Terms of trade, 498, 688 Territory, 2, 519, 534 Terrorism, 500, 514, 533 Thai baht, 65-66, 70, 84, 149, 153, 158, 274, 318-319, 322, 360, 689 Thailand, 1, 48, 63, 65, 131, 148-149, 158, 178, 204, 273-274, 317-318, 322-323, 360-361, 392, 417, 421, 427, 477, 483, 517-518 marketing, 323 The Economist, 52, 138, 272-275, 294, 299, 310, 328, 513 Time draft, 1, 4, 16, 648, 650-654, 656, 666 Time value of money, 16, 187, 190, 215, 230, 468, 549, 592, 623, 656, 704, 708, 734 Time zones, 76, 422 Timing, 13-14, 339, 356, 366, 377, 399, 413, 435, 522, 555, 677 of change, 14 Tokyo Stock Exchange, 425, 443, 469 Total cost, 311, 314, 399, 402, 552-553, 558, 560-561, 565, 721-726 Total costs, 413, 552, 560-561, 723-724 Total market value, 11, 466 Total revenue, 195, 302, 311, 314, 317-319, 558-561, 565-566 Tourism, 132, 143, 362 Trade, 1-6, 8-12, 14-17, 20-24, 29, 32, 36, 38-39, 41-42, 44-47, 49-52, 54, 56-60, 66, 69-70, 73-78, 80, 83-84, 102, 105-107, 110, 114, 117-118, 125, 128-129, 131-132, 135, 139-140, 143-145, 147, 151, 161-162, 166, 169-170, 172, 176, 178, 182-183, 186, 219, 232, 234, 241-248, 251-253, 258, 266-267, 287, 291-294, 299, 325, 327, 336-337, 340, 346, 352-355, 357-358, 362, 365-366, 382, 385, 387-388, 391-392, 398, 408, 419-420, 423-428, 431-432, 434, 436-437, 439, 443, 445, 448, 453, 455-456, 459-462, 467, 489, 498, 513, 515, 519-520, 525, 534, 614, 630-631, 635, 641-667, 671, 682-683, 687-688, 695, 697-698, 699-702, 704, 706, 711, 725, 744, 747, 750, 760-761, 769 countertrade, 3-4, 8, 642, 662-667, 688 deficit, 5, 117, 125, 128, 131-132, 135, 139-140, 143-145, 161, 166, 178, 183, 346, 365, 498, 525, 630, 664, 667 domestic, 1-6, 8-12, 14-16, 22-24, 42, 44, 50-51, 58-59, 76, 80, 84, 117-118, 135, 140, 143, 147, 151, 162, 166, 169, 172, 176, 219, 251-252, 266-267, 287, 291-292, 327, 340, 346, 362, 382, 387-388, 391-392, 419, 431, 434, 437, 439, 489, 498, 525, 534, 614, 631, 650-651, 661, 688, 697, 711, 725 globalization and, 20-24, 29, 32, 36, 38-39, 41-42, 44-47, 49-52, 299 regional agreements, 21 specialization and, 761 surplus, 8, 11, 15, 125, 128-129, 131-132, 135, 139, 143-145, 346 Trade balance, 11, 16, 118, 125, 129, 132, 135, 140, 143-144, 291, 346, 630-631, 664 Trade barriers, 6, 21, 49 Trade credit, 654, 661-662, 666, 671, 688, 697 Trade deficit, 117, 667 Trade embargoes, 515 Trade liberalization, 20, 41-42, 50, 52 Trade policies, 38, 117 Trademark, 14, 270, 680 Trade-offs, Trading centers, 55 Training, 37, 42, 558 Transaction exposure, 100, 216, 334, 717 Transactions, 1-4, 6, 9-13, 15-17, 55-58, 62, 64-65, 67-70, 73-76, 78, 84, 88-89, 95, 101, 103, 105, 107-108, 117-125, 127-129, 132-133, 135, 142, 144-145, 157-158, 160-161, 168, 172-173, 176, 179, 182, 185, 195, 197, 200-201, 204, 214-216, 301, 319, 339, 342, 382, 388, 391, 407, 422, 424, 432, 437, 505, 536, 614-616, 627, 633, 643, 645, 647, 651, 660, 663, 672, 675-676, 683-684, 707, 712-713, 733-734, 736, 738-739, 744, 748, 751-754, 762-766, 769 consistent, 10, 142, 633 Transfer prices, 16, 670, 678, 681-686, 696-698 Transfer pricing, 38, 557, 670, 681-686, 697-698 Transfers, 3-4, 8, 16, 42, 54, 75-77, 118, 121-122, 125-129, 132, 135, 137, 142-143, 155, 183-184, 434, 436, 579, 619-620, 665, 672, 675, 678-679, 696-697, 747 Translation, 527 Translations, 432-433 Transparency, 4, 59, 182, 424-425, 437, 440, 499, 513, 748 Transparency International, 499 Transportation, 125, 272, 441, 643-644 costs, 272, 441, 644 Transportation costs, 272 purchasing power parity and, 272 treasurer, 72-73, 228, 233, 412, 587, 617, 629, 650, 674, 678, 697, 735 Treasurers, 239, 377, 714, 735 Treasury bills, 25, 123, 157, 187, 204, 206-207, 243, 248, 359, 393, 525-526 Treasury bonds, 49, 122-123, 134, 139-140, 144, 386, 521-522, 540, 661, 750-751, 770 Treasury Department, 48, 632, 637 Treaties, 9, 38, 519, 542 Treaty of Maastricht, 39, 180, 357 Treaty of Rome, Trends, 3, 11, 20, 23, 41, 60, 85, 147, 154, 336, 348-350, 352-354, 363, 365, 377, 419, 634 Trinidad and Tobago, 148, 518 TRIPS, 301 Trucks, 664, 667 Trust, 10, 14, 23, 27, 98-99, 436-437, 484, 537, 555 Trust Fund, 484, 555 Trusts, 459, 651 Turkey, 35, 63, 81, 148, 273, 284, 417, 421, 426-427, 477, 518, 534 currency, 63, 81, 148, 273, 284, 518, 534 Turkish lira, 66, 81, 148, 706 Turnover, 16, 56, 58-59, 426-427, 429-430, 439, 443 U Uganda, 148, 178, 500, 518 Ukraine, 39, 148, 518, 534, 662, 667 UNCTAD, 16, 21-22, 28, 34-35, 50 United Nations Conference on Trade and Development, 16, 21 Underwriter, 397, 433 Underwriting, 16, 382, 399, 413, 441, 520, 550 line, 16 losses, 16 risk, 16, 399, 520 Unemployed, 25 Unemployment, 42-45, 80, 131, 157, 166, 172, 183, 361, 487, 513 costs of, 43, 183, 487 in 2007, 44 in 2009, 131 inflation and, 172 Unemployment rate, 487 Unions, 153, 171, 182, 186 Unit of account, 15, 65, 149, 179 United Arab Emirates, 35, 63, 148, 665 United Kingdom, 20, 22, 26-27, 29, 31-33, 35, 56, 62-64, 67, 76, 130, 145, 148, 152, 160, 178, 182, 204, 262-265, 271, 284-286, 296-297, 325, 332-334, 345, 356, 362, 376-379, 387-388, 393, 412, 416-417, 421, 427-428, 430-431, 435, 450-453, 455, 458-459, 476, 478, 483, 485-486, 500, 517-518, 532, 536, 657, 718, 750 United Nations, 10, 16, 21, 27, 36, 52, 146, 299, 361, 501, 663 United Nations Conference on Trade and Development, 16, 21, 52, 299 United States, 1, 4, 6-8, 10, 12, 14-15, 20, 22-23, 25-26, 29-35, 38, 40, 42, 46, 48-51, 55-57, 63-65, 67, 76-77, 84, 87, 103, 118-120, 122, 125-134, 137, 139-141, 144, 148, 152, 155-156, 160-161, 164-166, 176-178, 183-184, 186, 196, 203-204, 206, 216-217, 242, 261-265, 267-271, 273-274, 278, 280-286, 289, 293, 296-299, 301-304, 309-310, 316, 324-327, 332, 344-345, 347, 363, 370, 372, 376-380, 382, 386-388, 391-395, 406, 410-411, 417, 419, 421-422, 424, 426-428, 430-433, 435-437, 440-443, 445, 451-455, 458-459, 469-470, 475-476, 478, 483-486, 488, 491, 497, 500-501, 517-518, 524-525, 528, 532-534, 538-539, 546, 563, 573, 588, 609, 630, 642, 644, 646, 648, 650, 656-657, 660-661, 663, 680, 682-683, 696, 700-701, 706, 718, 721, 744, 748, 750, 757 ADRs, 431-433, 435-437, 440-441, 443, 445, 459, 478, 485 back-to-back loan, 1, 744 Bretton Woods agreement, 166 dollar reserves, 118, 129 foreign direct investment, 7, 29, 34, 50-51, 132, 134, 141, 161, 532 foreign direct investment and, 51 gold standard and, 186 international trade in, 789 Uruguay, 21, 36, 42, 63, 148, 178, 518 Uruguay Round, 21, 36, 42 U.S, 1-6, 10, 12-13, 15, 21, 25-27, 29-30, 33-34, 36, 40, 42, 45, 47-49, 54, 56-57, 61-62, 64-67, 72, 76-77, 80, 82, 84, 88-89, 91, 95, 98, 102-103, 105-106, 114-115, 117-129, 131, 133-135, 139-141, 144-146, 148, 150, 156, 158-159, 161-163, 166, 168, 172-173, 177, 183-184, 187, 196, 200, 206-207, 210-211, 213-214, 216-217, 224, 239-240, 242, 244, 252-253, 260, 263, 265-266, 268-270, 272-275, 277-278, 280-281, 283-286, 289-291, 293, 295-302, 304-305, 307-308, 316, 324-328, 330, 337, 343, 345, 347, 353, 359-360, 363-366, 372-375, 378-387, 389, 391-392, 396, 398, 401-404, 406-408, 411, 413, 416-419, 421-423, 427, 430-434, 436-437, 439-445, 449-450, 453-455, 457-460, 462, 465, 469-472, 476-478, 481-482, 484-487, 489-492, 496, 498-503, 505, 513, 516-517, 520-523, 525-529, 531, 533-534, 536-538, 540-542, 546, 557, 560, 562-573, 588-589, 591-596, 602, 604-606, 609-610, 612, 613, 618, 623-624, 629, 632, 638, 642, 646, 649, 655-656, 660-661, 667, 670, 679-680, 682-683, 689, 691-693, 697-698, 701, 706, 714, 716-722, 726, 729, 736-741, 744, 746, 748, 750-751, 753-754, 757, 763, 770 U.S., 1-6, 10, 12-13, 15, 21, 25-27, 29-30, 33-34, 36, 40, 42, 45, 47-49, 54, 56-57, 61-62, 64-67, 72, 76-77, 80, 82, 84, 88-89, 91, 95, 98, 102-103, 105-106, 114-115, 117-129, 131, 133-135, 139-141, 144-146, 148, 150, 156, 158-159, 161-163, 166, 168, 172-173, 177, 183-184, 187, 196, 200, 206-207, 210-211, 213-214, 216-217, 224, 239-240, 242, 244, 252-253, 260, 263, 265-266, 268-270, 272-275, 277-278, 280-281, 283-286, 289-291, 293, 295-302, 304-305, 307-308, 316, 324-328, 330, 337, 343, 345, 347, 353, 359-360, 363-366, 372-375, 378-387, 389, 391-392, 396, 398, 401-404, 406-408, 411, 413, 416-419, 421-423, 427, 430-434, 436-437, 439-445, 449-450, 453-455, 457-460, 462, 465, 469-472, 476-478, 481-482, 484-487, 489-492, 496, 498-503, 505, 513, 516-517, 520-523, 525-529, 531, 533-534, 536-538, 540-542, 546, 557, 560, 562-573, 588-589, 591-596, 602, 604-606, 609-610, 612, 613, 618, 623-624, 629, 632, 638, 642, 646, 649, 655-656, 660-661, 667, 670, 679-680, 682-683, 689, 691-693, 697-698, 701, 706, 714, 716-722, 726, 729, 736-741, 744, 746, 748, 750-751, 753-754, 757, 763, 770 U.S Department of Commerce, 125, 127-128, 133, 146 U.S dollar, 4, 6, 15, 57, 62, 64-67, 77, 84, 89, 91, 103, 105, 115, 144, 148, 150, 172-173, 177, 200, 206, 211, 213-214, 216, 224, 240, 242, 253, 274-275, 278, 293, 295, 300, 325, 345, 360, 374-375, 384-386, 498, 521, 525-526, 573, 592, 594-596, 613, 646, 714, 717-718, 721, 736, 738-739, 741, 751, 753-754, 757 dollarization, 172-173 euro and, 242 Japanese yen and, 144, 213, 216 purchasing power parity and, 274-275, 278, 293 U.S economy, 347 U.S Export-Import Bank, 642 U.S Federal Reserve, 392 U.S Securities and Exchange Commission, 609 U.S Small Business Administration, 661 U.S Treasury bills, 25, 187, 206 U.S Treasury bonds, 122-123, 144, 386, 521-522, 661, 751, 770 Utilities, 27 Utility, 12, 16, 434, 460, 462, 465, 614 V Validity, 204, 232, 238, 260, 270, 279, 489, 679 Value, 1, 3-17, 23, 25-27, 29-30, 32, 35, 41, 46, 48-49, 51, 58, 62-65, 72, 78, 80-84, 89, 92, 94, 96, 99-100, 102-103, 105-107, 112, 114, 117, 119, 121, 124, 126-128, 130, 132-134, 139-140, 142-143, 145, 148-150, 157-158, 160-161, 163-170, 173-177, 180, 184-185, 187, 189-191, 195, 197, 203, 205, 208-213, 790 215-217, 220-225, 228-230, 233-234, 236-241, 244, 252, 257, 260-261, 274-278, 282, 284-285, 287, 291, 293, 297-299, 301-304, 311, 314-315, 317, 321-322, 324, 327, 329-331, 337, 339, 341-343, 345-347, 350-352, 355-356, 359, 361-363, 365, 370, 373-375, 380-381, 383-386, 389-390, 394, 397, 401-402, 406, 408-409, 411, 416, 418-419, 424, 429-431, 436-437, 440-442, 445, 448-451, 454, 458-459, 466, 468-469, 472-477, 486-493, 499, 503-505, 507-511, 519-525, 527-528, 531, 535-537, 539-541, 543-557, 561-563, 565-574, 575-576, 577-586, 589-612, 614-615, 617-627, 631, 633, 635-638, 645-650, 652-657, 661, 663-666, 670-671, 679, 683-684, 686-687, 690, 693-695, 697, 702-704, 707-708, 711-714, 717-721, 723-741, 744-747, 750-754, 758-759, 762-765, 767-768, 770 building, 9, 35, 134, 161, 466, 717, 738 defined, 6, 166, 257, 274, 299, 345, 406, 424, 442, 450, 469, 546, 571, 580, 596, 610, 664, 697, 737 market value, 8, 11, 134, 180, 213, 302, 370, 385-386, 445, 449, 466, 487, 504-505, 537, 552, 555, 578-579, 582, 609, 615, 635, 638, 746-747, 752, 767 Value added, 389 Variability, 14, 42, 151, 173, 178, 180, 184-185, 224-228, 230, 245-246, 251-252, 269, 327, 479, 627-628 Variable costs, 560, 573 Variables, 3-4, 8, 12, 15, 17, 141, 187, 215, 227, 229, 235, 257, 290, 296, 307, 317-318, 328, 336, 340, 346-347, 352, 357, 362-363, 451, 487-488, 496, 498, 513-515, 521, 540, 630, 678, 682, 699, 749 Variance, 1-3, 6, 8-9, 11-12, 14-17, 112-113, 115, 229-231, 236, 245, 257-258, 450-451, 453-455, 460-462, 464-469, 479-481, 489-491, 496, 606-607, 611, 613-614, 622, 624-625, 637, 678, 731-732, 734, 739 Vehicle currency, 17, 65-67, 84 Venezuela, 45, 51, 63, 148, 483, 497, 499, 518, 537-538, 542, 664, 698 foreign direct investment, 51, 542 political environment, 497 Venture capital, 423-424 videos, 145 Vietnam, 1, 63, 148, 178, 516-519 Violence, 500, 512-513, 515, 532-535, 539 country risk, 512-513, 539 Voltaire, 364 Volume, 4, 16, 19, 51, 56, 58, 60-61, 74-75, 78, 83, 162, 164, 176, 336, 400, 416, 423-429, 437, 439, 485, 661, 675, 769 of international trade, 4, 74-75 Volumes, 54, 56, 70, 74, 77, 168, 173, 242, 424, 738 Voting rights, 32 W Wages, 45, 169-170, 183, 267, 309, 356, 361-362, 547, 557, 671, 694 differences in, 267 equilibrium, 169-170, 356, 694 nominal, 309, 356, 362, 694 prices and, 170, 694 real, 169-170, 183, 267, 309, 356, 361-362 Wales, 542 Wall Street Journal, 65-66, 69, 115, 186, 206, 232, 413, 715 War, 2, 21, 23, 39, 42, 131, 165, 168, 171, 184, 233, 286, 387, 428, 476, 498, 500, 513, 515, 533-534, 539 Warehousing, 534, 573, 694 Warrants, 4, 17, 384-385, 521, 716, 741 Water, 710 Weak currency, 80, 153, 175-176, 179 Wealth, 2, 9, 14-15, 25, 29, 31-32, 40, 46, 49, 51, 123, 134, 138, 141, 169, 257-258, 390, 457, 460, 462-463, 487, 491, 570, 579, 614 Wealth of Nations, 51 Weather conditions, 24 Web, 8, 50, 60, 65, 73, 85, 172, 185-186, 198, 217, 253, 270, 293, 355, 364, 394, 403, 413, 444, 448, 475, 492, 517-518, 535, 541, 573, 612, 638, 663, 665, 667, 698, 701, 729, 771 Web site, 8, 50, 60, 85, 172, 185-186, 198, 217, 270, 293, 355, 394, 448, 475, 517-518, 535, 638, 663, 665, 667, 698, 701, 729 credibility, 185 Web sites, 65, 73, 403 Welfare programs, 42 West African Economic and Monetary Union, 150 White-collar workers, 45 Withholding taxes, 380-381, 557, 563, 565-566, 572, 681, 684, 744 Women, 140, 270 Won, 49, 63, 66, 106, 112, 190, 216, 234-235, 250, 273, 292, 306, 352, 360-361, 464, 466, 508, 520, 622, 706, 738 Work, 21, 39, 43, 80, 138-139, 157-158, 164, 184, 193, 234, 242, 256, 260, 270, 274, 276, 282-283, 293, 303, 336, 350-355, 363, 387, 394, 410, 416, 480, 524, 666-667, 671, 682, 696, 700, 704, 718-719, 721, 725, 729, 733, 736, 741, 761, 768-769 Workers, 11, 25, 42, 45-46, 80, 139, 183-184, 303-304, 309, 422, 497, 499, 538-539, 557, 571, 627, 671, 694 skilled, 45-46, 557, 571 workforce, 558 Working capital, 8, 12, 17, 329, 362, 388, 546-548, 552, 559, 561, 564, 571-573, 579, 597, 660, 669-698 World, 1-3, 7-11, 15, 17, 19-21, 23-27, 30, 35-39, 41-46, 48-52, 54-58, 61, 64-66, 74, 76, 78, 80, 83, 87, 117, 119, 124, 128-132, 134-135, 137, 139, 141-146, 147-148, 151, 154, 156-157, 160, 165-166, 168-171, 178, 181, 184, 186, 196, 203, 232-233, 251, 258, 260, 265-266, 272, 275, 280, 282, 286, 292-293, 299, 324, 330, 334-335, 337, 346, 354-355, 359, 364-365, 367, 370-371, 378-383, 386-387, 389-390, 392-393, 395, 404, 410, 413, 416-422, 427-428, 430, 434, 436-437, 439-441, 443-444, 448, 454, 456, 459, 466, 469-473, 476, 478-486, 488, 490-493, 497-501, 504-506, 511, 513, 520, 524, 529-534, 537, 539, 541-542, 547, 549, 552, 556, 585, 606-608, 619, 621-623, 630-631, 633, 636, 644, 664, 667, 670, 672-673, 680, 691, 695, 697, 701, 706, 726, 731, 738-739, 744-746, 748, 768 foreign direct investment, 7, 41, 50-51, 132, 134, 141, 520, 532, 542 World Bank, 1, 9, 11, 17, 37, 44, 50, 52, 170, 381-382, 444, 497, 505-506, 520, 524, 532-534, 539, 667, 745 World Bank Group, 9, 11, 17, 37 World economy, 19, 21, 41, 48, 50, 134, 142, 186, 387, 480, 549 World Trade Organization, 8, 17, 21, 38 dispute settlement, 38 WTO, 8, 17, 21, 38 World Trade Organization (WTO), 8, 17, 21, 38 World War, 2, 21, 23, 39, 131, 165, 168, 171, 184, 286, 387, 428, 476, 498 First, 39, 165, 168, 171, 498 Second, 39 WTO, 8, 17, 21, 38, 42, 44, 50, 266 WWW, 8, 35, 50, 63, 65-67, 85, 115, 130, 145-146, 198, 293, 328, 364, 367, 413, 430, 444, 475, 514, 517-518, 535, 542, 612, 649, 663, 665, 667, 698, 702 X xenophobia, 512 Y Yankee bonds, 377 Yen, 5-6, 15, 57-58, 62-66, 70-71, 80, 84-85, 88, 99-102, 107-111, 114-115, 119-122, 144, 147-149, 157, 159, 188-189, 191, 193, 196, 200-201, 208-209, 211-217, 219, 224-225, 232, 236-242, 244-245, 251-252, 261, 272-273, 275, 277-278, 280-284, 293, 295, 317-323, 326, 329, 350-351, 385-386, 408-410, 412-413, 490, 573, 603-606, 612, 637, 700, 713-718, 741, 745, 770 Yuan, 63, 66, 106, 140, 149, 161, 260, 273, 299, 316, 387, 413 Z Zimbabwe, 148, 173, 185 ... domestic financial markets through institution building and the use of innovative financial products International Financial Reporting Standards (IFRS) Accounting regulations developed by the International. .. a firm has revenues Bank for International Settlements (BIS) An international organization based in Basel, Switzerland, that promotes international monetary and financial stability and serves... financial stability and serves as a bank for the world’s central banks From International Financial Management Second Edition Geert Bekaert, Robert Hodrick Copyright © 2012 by Pearson Education,