www.ebookslides.com www.ebookslides.com page i International Financial Management Ninth Edition www.ebookslides.com The McGraw-Hill Education Series in Finance, Insurance, and Real Estate FINANCIAL MANAGEMENT Block, Hirt, and Danielsen Foundations of Financial Management Seventeenth Edition Brealey, Myers, and Allen Principles of Corporate Finance Thirteenth Edition Brealey, Myers, and Allen Principles of Corporate Finance, Concise Second Edition Brealey, Myers, and Marcus Fundamentals of Corporate Finance Tenth Edition Brooks FinGame Online 5.0 Bruner, Eades, and Schill Case Studies in Finance: Managing for Corporate Value Creation Eighth Edition Cornett, Adair, and Nofsinger Finance: Applications and Theory Fifth Edition Cornett, Adair, and Nofsinger M: Finance Fourth Edition DeMello Cases in Finance Third Edition Grinblatt (editor) Stephen A Ross, Mentor: Influence through Generations Grinblatt and Titman Financial Markets and Corporate Strategy Second Edition Higgins Analysis for Financial Management Twelfth Edition Ross, Westerfield, Jaffe, and Jordan Corporate Finance Twelfth Edition Ross, Westerfield, Jaffe, and Jordan Corporate Finance: Core Principles and Applications Sixth Edition page ii www.ebookslides.com Ross, Westerfield, and Jordan Essentials of Corporate Finance Tenth Edition Ross, Westerfield, and Jordan Fundamentals of Corporate Finance Twelfth Edition Shefrin Behavioral Corporate Finance: Decisions That Create Value Second Edition INVESTMENTS Bodie, Kane, and Marcus Essentials of Investments Eleventh Edition Bodie, Kane, and Marcus Investments Twelfth Edition Hirt and Block Fundamentals of Investment Management Tenth Edition Jordan, Miller, and Dolvin Fundamentals of Investments: Valuation and Management Ninth Edition Stewart, Piros, and Heisler Running Money: Professional Portfolio Management First Edition Sundaram and Das Derivatives: Principles and Practice Second Edition FINANCIAL INSTITUTIONS AND MARKETS Rose and Hudgins Bank Management and Financial Services Ninth Edition Rose and Marquis Financial Institutions and Markets Eleventh Edition Saunders and Cornett Financial Institutions Management: A Risk Management Approach Tenth Edition Saunders and Cornett Financial Markets and Institutions Seventh Edition INTERNATIONAL FINANCE Eun, Resnick, and Chuluun International Financial Management Ninth Edition REAL ESTATE www.ebookslides.com Brueggeman and Fisher Real Estate Finance and Investments Sixteenth Edition Ling and Archer Real Estate Principles: A Value Approach Fifth Edition FINANCIAL PLANNING AND INSURANCE Allen, Melone, Rosenbloom, and Mahoney Retirement Plans: 401(k)s, IRAs, and Other Deferred Compensation Approaches Twelfth Edition Altfest Personal Financial Planning Second Edition Harrington and Niehaus Risk Management and Insurance Second Edition Kapoor, Dlabay, Hughes, and Hart Focus on Personal Finance: An Active Approach to Help You Achieve Financial Literacy Sixth Edition Kapoor, Dlabay, Hughes, and Hart Personal Finance Thirteenth Edition Walker and Walker Personal Finance: Building Your Future Second Edition www.ebookslides.com page iii International Financial Management Ninth Edition Cheol S Eun Georgia Institute of Technology Bruce G Resnick Wake Forest University Tuugi Chuluun Loyola University Maryland www.ebookslides.com www.ebookslides.com page iv INTERNATIONAL FINANCIAL MANAGEMENT Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121 Copyright © 2021 by McGraw-Hill LLC All rights reserved Printed in the United States of America No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill LLC, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper 1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20 ISBN 978-1-260-57531-6 MHID 1-260-57531-4 Cover Image: alice-photo/Shutterstock All credits appearing on page or at the end of the book are considered to be an extension of the copyright page The Internet addresses listed in the text were accurate at the time of publication The inclusion of a website does not indicate an endorsement by the authors or McGraw Hill LLC, and McGraw Hill LLC does not guarantee the accuracy of the information presented at these sites www.ebookslides.com mheducation.com/highered www.ebookslides.com Q Qatar, Doha Round, 13 Qi, Rong, 108 QIBs See Qualified institutional buyers (QIBs) Qualified institutional buyers (QIBs), 324 Quality spread differential (QSD), 370 Quantitative easing, 309 Quantity theory of money, 184 Quantum Fund, 402 Quota system, 14 Quotations cross-exchange rate, 130–131 direct/indirect, 128 forward rate, 139–140 futures contracts, 189–192 interest rate swap, 369 (exhibit) options, 195 (exhibit) spot rate, 128–130 swap market, 367–369 R Rajan, Ramkishen S., 168 Ramchand, Latha, 457n Ranaldo, Angelo, 139 Random walk hypothesis, 171 Rao, Narasimha, 444 Rate fiddling, 295 Ratha, Artatrana, 69 Ravenscraft, David, 433 Raytheon, 516 Reagan, Ronald, 50 Reagan administration, 37 Real exchange rate, PPP deviations and, 163, 166 (exhibit) Real options, in capital budgeting, 489–491 Recurrent exposure, hedging with swap contracts, 225–226 Reddick, Leigh, 405 Redenominated, 246 Reference entity, 305 Reform, corporate governance Cadbury Code of Best Practice, 108–109 Dodd-Frank Act, 109–110 objectives of reform, 106 political dynamics, 106–107 Sarbanes-Oxley Act, 107–108 scandals, 105–106 Registered bond, 322 Registered shares, 5–6 Regression coefficient, 244 Reinvoice center, 227 Relative efficiency, 27 Relative version of PPP, 162–163 Remeasurement, 267 Rendleman, Richard J., Jr., 201n www.ebookslides.com Renminbi (RMB), 58–59 Reporting currency, 266 Representative office, international banking, 284 Repsol, 5 Resale price approach, 534 Research and development, 253 Residential (worldwide) taxation, 526 Residual control right, 90 Resnick, Bruce, 405 Resnick, Bruce G., 360 Resolution authority, 109 Restricted funds, 482 Retail market (foreign exchange), 123 Returns, international equity, 357, 359 Reuters, 431 Reversing trade, 187–188 Rhone-Poulenc SA (Life Sciences), 430 Ricardo, David, 12–13, 26–27, 161 Rigobon, Roberto, 251 Rime, Dagfinn, 159 Rio Tinto, 354, 427 Risk country systematic, 462–464 indirect world systematic, 463–464 interest rate and currency swaps, 378 in international trade, 509 political, foreign direct investments (FDIs) and, 435–442 pure domestic systematic, 463–464 pure foreign market, 467 shift/share, 226 systematic (nondiversifiable), 387–388 systemic, 18 world systematic, 462–464 Risk-adjusted discount method, 488 Risk adjustment, in capital budgeting analysis, 488 Risk aversion, aggregate, measure of, 462–464 Risk-aversion measure, 462–464 Risk diversification, international correlation structure and, 386–390 Risk-sharing mechanism, 88 Rivera-Batiz, Francisco, L., 289n Rivera-Batiz, Luis, 289n Robert Bosch GmbH, 103 Robertson, Julian, 402 Roche, 431 Rogoff, Kenneth, 51, 173 Rogoff, Kenneth S., 164 Roll, Richard, 360, 388, 453 Root, Franklin, 435n Rose, Andrew K., 164 Ross, Stephen A., 191n, 201n, 488n11 Rossi, _, 173 Roulet, J., 388 Round-trip transactions, 188 Rouwenhorst, K Geert, 360 Royalties and fees, 535, 536 (exhibit), 537 www.ebookslides.com Rubinstein, Mark, 201n Rule 144A, SEC, 324, 350 Rule 415, SEC, 324 Russia political risk of investment in, 5 private ownership in, 15 S Sabherwal, Sanjiv, 175 Sales market indicators, functional currency and, 265 (exhibit) Sales price indicators, functional currency and, 265 (exhibit) Salinas administration, 53 Salomon Brothers, 402–403 Samsung Electronics, 88, 101 Samuelson, Paul, 51 Samurai bonds, 322 Sara Lee Corporation’s Eurobonds (mini case), 338 Sarbanes-Oxley Act (SOX), 95, 107–108, 353 Sarkissian, Sergei, 355, 457 Sarnat, L., 405 Sarno, Lucio, 159 Saudi Arabia, debut on international bond market, 323 Saudi Aramco, 323 Savings glut, global, 302–303 Scandinavian civil law, 98, 99 (exhibit), 102 (exhibit) Scheraga, C., 433, 434 Schill, Michael, 355, 457 Schmidt, Helmut, 43 Schnitzer, Monika, 518 Schnusenberg, Oliver, 401 Scholes, Myron, 403 Schuman, Robert, 44 (exhibit), 48 Schumpeter, J., 105 Schwert, W G., 406n SDRs See Special drawing rights (SDRs) Seagram, 430 SEC Exchange Act Rule 12h-6, 353, 356 Secondary income, 68–69 Secondary market equity market, 342 Eurobond market, 332–333 Section 25, Federal Reserve Act, 285 Securities and Exchange Commission (SEC), 17, 322, 460–461 Securities Exchange Act of 1934, 353 Security regulations, bond issuance and, 324 Self-centered managers, 87 Self-fulfilling expectations, 157 Self-interested managers, 95 Selling group, 331 Sensitivity analysis, in capital budgeting, 489 page 564 www.ebookslides.com Sensitivity, economic exposure and, 243 Services, 68 Settled-up, 186 Settlement price, 186 Shadow banking system, 302 Shandong Iron & Steel Group, 427 Shanghai Stock Exchange, 15–16 Share exchange risk, 226 Shareholder activism, 95–96 Shareholder diversification, FDI and, 429–430 Shareholder rights, 87, 99 (exhibit) Shareholder rights index, 98 Shareholders, 9, 88 Shareholder wealth, 477 Shareholder wealth maximization, 7–9 Shareholdings, concentration of, 93–95 Shares, cross-listing of, 347, 348–349 (exhibit), 350, 355–356 Share valuation, 342 Sharpe, William F., 201n Sharpe performance measure (SHP), 391, 393–394, 403–404 Sharpe ratio, 416–417 Shastri, Kuldeep, 205, 355 Shelf registration, 324 Shell branch banks, 286 Shenzhen Stock Exchange, 15–16 Shift exchange risk, 226 Shintani, Mototsugu, 164 Shivdasani, A., 94 Shleifer, A., 89, 94, 97–98, 100, 101, 105 Short, H., 95 Short forward positions, 140 Short position, 186 Shrewsbury Herbal Products (foreign exchange; mini case), 149 SIBOR See Singapore Interbank Offered Rate (SIBOR) Side contract, 516 Siemens, 20 Silver standard, 30 Simkins, Berry, 242 Simon, David, 360 Singapore Depository Receipts, 351 Singapore Exchange, 296 Singapore Interbank Offered Rate (SIBOR), 290 Singapore International Monetary Exchange, 185 Singapore Stock Exchange, 351 Singer, I M., 428–429 Singer & Company, 428–429 Single-currency interest rate swap, 365 Single European Act, 44 (exhibit) SK Telecom, 107 Small-cap premium, 403–404 Small-cap stocks, 403–404 Smell test, 100 Smith, Adam, 88 Smith, Jeffrey, 338 Smithsonian Agreement, 36, 43 www.ebookslides.com Snake, 43 Société Générale, 17, 185 Society for Worldwide Interbank Financial Telecommunications (SWIFT), 125–127, 126 Softbank of Japan, 431 Solnik, Bruno, 359n, 387, 388, 405 Soros, George, 402 Source country, 527 South Africa, cost of capital in, 453 Sovereign bonds, 323 Sovereign debt crisis (Europe; 2010), 11–12, 308 Sovereign ratings, 330–331 (exhibits) Sovereign risk, 378 Sovereign wealth funds (SWFs), 71–72 Spaak, Paul-Henri, 48 SPDR (spider), 401 Special drawing rights (SDRs), 35, 67, 126–127 Specialist, 345 Speculating, with currency features, 191–192 Speculative interbank transactions, 124–125 Speculators, 187 Sponsored ADRs, 353 Spot foreign exchange market microstructure, 138–139 Spot FX trading, 132–133 Spot market bid-ask spread, 131–132 cross-exchange rate, alternative expressions for, 130–131 cross-exchange rate quotations, 130–131 cross-rate trading desk, 133–134 defined, 127 FX trading, 132–133 spot foreign exchange market microstructure, 138–139 spot rate quotations, 128–130 triangular arbitrage, 135–137 Spot rate break-even, 220–221 quotations, 128 Spread, 305 Srinivasan, Venkat, 505 Stabilized arrangement, 39 (exhibit), 42 Stakeholders, 87 Standard & Poor’s, 305 ADR Index, 357 Case-Shiller Composite House Price Index of 20 U.S Cities, 307 Global 1200 Index, 357 Global Ratings, 327, 328 Long-Term Issuer Credit Ratings, 329–331 (exhibits) Standard consumption basket, 161 Standardized features, futures contracts, 186 Stapleton, Richard, 449n Starbucks (transfer pricing and royalty payment arrangement), 537 State-owned enterprises (SOEs; China), 15–16 Statistical discrepancy, balance of payments and, 72 Sterilization of gold, 32–33 Stitzel, Thomas, 469–470 Stobaugh, Robert, 469 www.ebookslides.com Stockholm Automated Exchange (SAXESS), 346 Stock market indexes, 358 (exhibit) Stock markets, emerging, 96–97 Stock returns, 359 Stocks, cross-border listings of, 10 Stock shares, 5–6 Stonehill, Arthur, 455n, 469–470 Straight fixed-rate bond issues, 325 Striking price, 193 Structured investment vehicles (SIVs), 303–304, 304 Stulz, R., 96 Stulz, Rene, 452n, 453, 460, 464n13 Stulz, Rene M., 328, 355, 356 Style investing, 403 Subpart F income, 528, 529 (example; exhibit), 532 Subprime mortgage crisis, U.S., 16–18, 304 Subrahmanyam, Marti, 449n Subsidiaries, financial structure of, 469–470 Subsidiary bank, 285 Subsidiary income, 527–528 Substitution portfolio, 467 Subtraction method, VAT and, 524 Suez Canal, 436 Sumitomo, 7 Sunkyung Distribution, 107 Supplemental capital, 287 Suspension option, 490 Swap bank, 367 Swap broker, 367 Swap contracts, hedging recurrent exposure with, 225–226 Swap dealer, 367 Swap market efficiency of, 378–379 quotations, 367–369 size of, 366–367 Swaps See also Currency swaps; Interest rate swaps interest rate, 369–371 types of, 365 Swap transactions, 143–145 Sweatshop labor, Nike and (mini case), 25 SWFx See Sovereign wealth funds (SWFs) SWIFT See Society for Worldwide Interbank Financial Telecommunications (SWIFT) Swiss National Bank (SNB), 73–74 Switch trade, 515 Switzerland, foreign equity ownership restrictions in, 465–466 Synergistic gains, 433–434, 433n Syngenta AG, 431 Systematic (nondiversifiable) risk, 387–388, 452–453, 462–464 Systemic risk, 18 Systemic risk regulation, 109 page 565 www.ebookslides.com T Tandon, Kishore, 205, 355 Tang, L., 110n Tanzi, Calisto, 113 Tanzi family, 8 TARP See Troubled Asset Relief Program (TARP) Taxation objectives of, 521–522 progressive corporate taxes, 213–214 transfer pricing and, 530–536 Taxation, types of income tax, 522, 523 (exhibit), 524 value-added tax (VAT), 524, 526 withholding tax, 524, 525 (exhibit) Tax-avoidance techniques, 537 Tax Cuts and Jobs Act (2017), 71, 527, 528 Tax environments, national foreign tax credits, 527 territorial taxation, 526–527 worldwide taxation, 526 Tax equity, 522 Tax evasion, 526 Tax haven country, 528, 530, 537 Tax Increase Prevention and Reconciliation Act (TIPRA) of 2005, 528 Tax jurisdictions territorial, 526–527 worldwide/residential, 526 Tax neutrality, 521–522 Tax rates, from certain countries, 523 (exhibit) Tax Reform Act of 1986, 528 Tax treaties, 524 Teaser rates, 303 Technical analysis, 174 Technical approach, to exchange rate forecasting, 173–175 Technology See also Websites computer and telecommunications advances, 10 electronification of the foreign exchange market, 121 Internet-based, 10 TED spread, 306, 306 (exhibit) Teltrex’s cash management system, 497–502 Temasek Holdings, 71 Templeton, 404 Templeton Global Smaller Companies Fund, 404 Temporal method, of translation, 262 Tepper, Alexander, 159 Territorial taxation, 526–527 Thailand Asian currency crisis, 53–56, 301–302 foreign equity ownership restrictions in, 464 Theory of comparative advantage See Comparative advantage “Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure” (Jensen and Meckling), 89 Third World debt crisis, 298 See also International debt crisis Thomas, R., 96 Thomas, Stephen, 138 www.ebookslides.com Thomson Corporation, 431 Thomson Reuters, 120, 121 Thomson Reuters Matching, 121 TIBOR See Tokyo Interbank Offered Rate (TIBOR) Tier I capital, 289 Tier I Core capital, 287, 305–306 Tier II Supplemental capital, 287 Tier III capital, 287 Time deposit, 289 Time draft, 511 Time value, of option, 199 Timing option, 490 Timms, Aaron, 359n Tiwari, Siddharth, 160 Tobin’s q, 95n7 Tobin tax, 56 Tokyo Interbank Offered Rate (TIBOR), 290, 295 Tokyo Stock Exchange, 9 Tombstones, 307n, 332, 351 (exhibit) Toronto Stock Exchange (TMX), 345 Toyota, 3, 20, 88, 91, 355 Toyota Bank, 91 TPP See Trans-Pacific Partnership (TPP) Trade balance, 68 Trade barriers, FDI and, 425 Trade deficits, 78 Trade execution methods, 121 Trade finance American Machine Tools Inc (mini case), 519 countertrade, 514–518 Export-Import Bank (Ex-Im Bank) of the United States and, 513–514 foreign trade transaction, 509–512 forfaiting, 512 government assistance, in exporting, 512–514 Trade imbalance, 68, 81 Trade liberalization, economic integration and, 12–15 Trade-weighted value of U.S Dollar since 1964, 37 (exhibit) Trade, theory of comparative advantage and, 26–27 Trading partners, 81 (exhibit) Transactional restrictions, 323–324 Transaction balances, 497 Transaction exposure See also Operating exposure Airbus’s dollar exposure (mini case), 233 cross-hedging minor currency exposure, 223–224 defined, 211 exposure netting, 227 firms, hedging and, 212–214 foreign exchange options, 233–234, 235–238 (exhibit) forward market hedge, 214–217, 221 hedging contingent exposure, 224–225 hedging exchange risk, 233–234, 235–238 (exhibits) hedging foreign currency payables, 221–223 hedging foreign currency receivables, 214–221 hedging recurrent exposure with swap contracts, 225–226 hedging strategies compared, 220–221, 222–223 www.ebookslides.com hedging through invoice currency, 226 hedging via lead and lag, 226–227 money market hedge, 217–218, 221–222 options market hedge, 218–220, 222 risk management products, firms’ use of, 227–228 translation exposure versus, 271–272 Transactions domain, 10 Transfer pricing, 90 about, 530 advance pricing agreement (APA), 537–538 arm’s-length price and, 533 benefits of, 536 blocked funds, 538–539 defined, 533 differential income tax rates, 532 Eastern Trading Company’s Optimal Transfer Pricing Strategy (mini case), 542 exchange restrictions, 531–532 import duties, 534 as international tax issue, 533 low versus high markup policy, 531 markup policies, 537 miscellaneous factors, 536–537 multinational corporations (MNCs) and, 536 optimal strategy (mini case), 542 regulations affecting, 533–534 Starbucks example, 537 taxation and, 530–536 unbundling fund transfers, 534–535, 536 (exhibit) Transfer pricing method (TPM), 538 Transfer risk, 435 Translation exposure balance sheet hedge, 272–273 defined, 211–212, 261 derivatives hedge, 273–274 hedging, 272 hedging with forward contract, 273–274 operating exposure versus, 274 report, 269–270 transaction exposure versus, 271–272 Translation exposure report, 269–270 Translation methods See also Financial Accounting Standards Board (FASB) comparison of, 263 comparison of effects on financial statement preparation, 264 (exhibits) current/noncurrent, 261–262 current rate, 262 international accounting standards, 267 monetary/nonmonetary, 262 temporal, 262 Translation process, FASB 52, mechanics, 266–267 Trans-Pacific Partnership (TPP), 15 Transparency International, 438–442, 440 (exhibit), 516 page 566 www.ebookslides.com Travlos, N., 460n Travlos, Nicholas, 433 Travlos, Nikolaos, 92, 109 Triangular arbitrage, 135–137 Trichet, Jean-Claude, 12 Triffin, Robert, 34 Triffin paradox, 34 Trilemma, exchange rate and, 56 Troubled Asset Relief Program (TARP), 18, 309 Trump, Donald J., 14n, 15,19, 310 Tsoukas, Serafeim, 406 Turkey lira and purchasing power parity (PPP), 182 political risk analysis, 439 (exhibit) Turner, Robert D M., 533 U UBS, 9, 113 Unbiased Expectations Hypothesis (UEH), 294n Unbundling fund transfers, transfer pricing, 534–535, 536 (exhibit) Uncontrolled foreign corporation, 527–528 Uncovered interest rate parity, 157, 170n UNCTAD See United Nations Conference on Trade and Development (UNCTAD) Underwriters, 331 Underwriting spread, 331 Underwriting syndicate, 331–332 Unemployment, credit crunch and, 307 Unemployment rate, United States, DJIA and, 16 (exhibit) Unilateral APA, 538 Unilever NV, 338, 354 Union Bank of Switzerland (UBS), 17 United Auto Workers (UAW), 421 United Kingdom balance of current account (BCA)/financial account (BFA), 76–81 Brexit and, 18–19 cost of capital in, 453 does law matter?, 100 (exhibit) English common law, colonies and, 98–101 hostile takeovers in, 97 United Nations Conference on Trade and Development (UNCTAD), 20 United States balance of current account (BCA)/financial account (BFA), 76–81 balance of payments summary, 2018, 67 (exhibit) cost of capital in, 453 credit crunch in, 302–308 hostile takeovers in, 97 investment in foreign equities, 386 (exhibit) NAFTA and, 14 subprime mortgage crisis in, 16–18 tax credits, foreign, calculating, 529 (exhibit) tax treaty, with selected countries, 525 (exhibit) top trading partners (2018), 81 (exhibit) unemployment rate, DJIA and, 16 (exhibit) U.S.-Mexico-Canada-Agreement (USMCA) and, 14n www.ebookslides.com Universal banks, 282 Unsponsored ADRs, 353 Uruguay Round, 13 U.S Bureau of Economic Analysis, 67 U.S Competent Authority, 538 U.S Department of Commerce, 10, 514, 517 U.S Department of Labor, 307 U.S Generally Accepted Accounting Rules (US-GAAP), 461 U.S Internal Revenue Code, 533 U.S.-Mexico-Canada-Agreement (USMCA), 14n U.S Securities and Exchange Commission See Securities and Exchange Commission (SEC) U.S Securities Exchange Act of 1934, 322 U.S Treasury, 303, 306 U.S Treasury bills, 306 U.S Treasury Department, 145 U.S Treasury Securities, 303, 306 V Valuation, capital markets, law and, 105 Value-added tax (VAT), 524, 526, 527 Value-additivity approach, to capital budgeting, 481 VanderGriend, Mark, 6–7 Van Kirk, Hilary, 531–536 Verdelhan, Adrien, 159 Veritas Emerging Market Fund, 182 Verizon Communications, 324 Vernon, Raymond, 428–429 Verschoor, Willem F C., 388 Vertical FDIs, backward and forward, 428 Vertical integration, FDI and, 427–428 Vietnam, political risk analysis, 438 (exhibit) Vietnam War, 35 Vishny, R., 89, 94, 97–98, 101, 105 Vivendi, 430 Vodafone, 431 Vodafone AirTouch, 8 Volatile short-term behavior, 157 Volcker, Paul, 51, 310 Volker Rule, 109, 110 Voluntary Restraint Agreement (Japan), 421 Volvo, 431 Von Hagen, Juergen, 49 W Wachovia, 307 Wahab, Mahmood, 401 Waldorf Astoria, 431 Wall Street Journal, The, 6–7, 331, 334 Wallstreet Treasura, international cash management system, 505 Wal-Mart Stores, Inc., 338, 538 Wang, Xue, 403 Wanniski, Jude, 50 www.ebookslides.com Warrant, of bond, 326 Washington Mutual, 307 Wasserfallen, Walter, 464n13 Wealth of Nations (Smith), 88 Websites clearstream.com, 333 columbia.edu/ram15, 49 data.un.org, 182 ex.europa.eu/taxation_customs/business/vat_en, 524 federalreserve.gov/releases/h10/hist, 63 fx.sauder.ubc.ca, 170 https://www.cia.gov/library/publications/the-world-factbook, 4 investing.com, 204n money.cnn.com/data/currencies, 130 nasdaqomxnordic.com, 346 thomsonreuters.com, 120 tpmba.com, 541 transparency.org, 438 page 567 us.ishares.com/product_info/fund/overview/EWW.htm, 412 www2.sgx.com, 296 www.adb.org, 56 www.adrbnymellon.com/indices/composite-dr-index/overview, 457 www.adr.com, 362 www.afme.eu, 337 www.bea.gov, 68 www.bgcpartners.com, 125 www.bis.org, 119, 287, 367 www.bloomberg.com, 362 www.cia.gov/library/publications/the-world-factbook, 444 www.cmegroup.com, 188, 208 www.currenex.com, 125 www.duni.com/en/investor-relations/reports/, 262 www.ecb.int, 46 www.ecb.int/stats, 80 www.ecgd.gov.uk, 514 www.economist.com/content/big-mac-index, 162 www.euroclear.com, 333 www.euronetting.com, 505, 506 www.euronext.com, 346 www.eximbankindia.in, 514 www.exim.gov, 513 www.export.gov, 512 www.fasb.org, 262 www.federalreserve.gov/releases/h10/hist, 36, 232 www.finpipe.com/interest-rate-swaps, 383 www.fiscalagents.com, 519 www.fitchratings.com, 327 www.florin.com/v4/valore4.html, 223 www.fxstreet.com, 173 www.globaloffset.org, 514 www.icap.com, 120 www.ebookslides.com www.icmagroup.org, 333 www.ifrs.org, 267 www.imf.org, 9, 84 www.imf.org/external/fin.htm, 35 www.isda.org, 366 www.ishares.com, 357, 401 www.lib.berkeley.edu/doemoff/govinfo/intl/gov_eu.html, 14 www.londonstockexchange.com, 472 www.moodys.com, 328 www.msci.com, 356 www.msci.com/equity/index.html, 390 www.nasdaqbaltic.com, 346 www.nasdaq.com, 344 www.newyorkfed.org/fxc, 122 www.novo.dk, 455 www.nyse.com, 345, 472 www.occd.org, 112 www.oecd.org, 172 www.sec.gov/edgar.shtml, 258 www.sec.gov/info/edgar.shtml, 213 www.standardandpoors.com, 328 www.stern.nyu/~igiddy/fxrisk.htm, 212 www.taxsites.com/international.html, 524, 541 www.theice.com, 188 www.theice.com/iba/libor, 291 www.themexicofund.com, 412 www.tmx.com, 345 www.tradeandforfaiting.com, 512 www.treasurers.org, 506 www.treasury-management.com, 502 www.unctad.org/wir, 20 www.ustransferpricing.com, 533 www.wellsfargo.com/biz/online-banking/international, 315 www.worldbank.org, 482 www.worldwide-tax.com, 524 www.wto.org, 13 www.xc.com/currencyconverter, 149 Weighted average cost of capital, 450 Wells Fargo, 307 Westerfield, Randolph W., 488n11 Weston, James, 213–214 Whaley, Robert, 205 Wheatley, S., 400n White, Harry Dexter, 33 Wholesale level, Eurocurrency market, 289 Wholesale market (foreign exchange), 123 Wilshire Associates, 93 Wipro, 9 Withholding tax, 524, 525 (exhibit) World Bank, 33, 366, 438, 514, 517 World beta, 390, 390n WorldCom, scandal, 8, 87, 105 World Currency Options, 193 World Economic Forum, 438 World Federation of Exchanges (WFE), 339 www.ebookslides.com World Index, 356–357 World market portfolio, 462–464 World’s bond markets, 321, 322 (exhibit) World systematic risk, 462–464 World Trade Organization (WTO), 13 Worldwide/residential taxation, 526 Wrampelmeyer, Jan, 139 W R Grace, 93 Writer, of option, 193 WTO See World Trade Organization (WTO) Wu, Liuren, 159 X Xbox gaming console, 22 Xerox, 96 Xia, Lichuan, 360 XTX Markets, 121 Y Yang, Jiawen, 251 Yang, T., 108 Yankee bonds, 322, 323 Yankee stock offerings, 350 Yeung, Bernard, 433 Yields, 334 Yilmazkuday, Hakan, 167 Yoo, Yong Keun, 356 York, Jerome, 93 YPF (oil company; Argentina), 5 Yuan, 126–127 Yukos, Russian oil, 5 Z Zedillo, Ernesto, 52 Zero-coupon-for-floating rate swap, 377 Zero-risk, zero-investment strategy, 151 Zero-sum game, 13, 186 Zhang, B., 405 Zhang, Bohui, 453 Zhejiang Geely Holding Group, 431 Zhou, J., 107–108 Zingales, L., 105 Zurich Stock Exchange, 345 Zwinkels, C J., 388 page 568 www.ebookslides.com ... APPENDIX 1A: Gain from Trade: The Theory of Comparative Advantage AS THE TITLE International Financial Management indicates, in this book we are concerned with financial management in an international setting Financial management is mainly concerned with how to optimally make various corporate financial decisions, such as... Saunders and Cornett Financial Institutions Management: A Risk Management Approach Tenth Edition Saunders and Cornett Financial Markets and Institutions Seventh Edition INTERNATIONAL FINANCE Eun, Resnick, and Chuluun... www.ebookslides.com www.ebookslides.com page iv INTERNATIONAL FINANCIAL MANAGEMENT Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121 Copyright © 2021 by McGraw-Hill LLC All rights reserved