International Finance: A Practical Perspective

Adrian Buckley is Emeritus Professor of International Finance at Cranfield School of Management, Cranfield University, and Visiting Professor of Finance at the Free University, Amsterdam. Prior to entering academic life, he worked in banking, management consulting and as a group treasurer to a FTSE-100 company

• 1 Introduction 2 The international monetary system         3 Exchange rates: the basic equations 4 Foreign exchange markets 5 The balance of payments 6 Theories and empiricism on exchange rate movements 7 Definitions of foreign exchange risk 8 Does foreign exchange exposure matter? 9 Principles of exposure management 10 Internal techniques of exposure management 11 External techniques of exposure management 12 Swaps 13 Financial futures and foreign exchange 14 Options 15 Currency options 16 Interest rate risk 17 Financial engineering 18 Credit default swaps 19 The financial crisis of 2007-8:& 20 The internationalisation process 21 Exchange controls and corporate tax in international investment 22 The international capital budgeting framework 23 The international capital budgeting model 24 International investment: what discount rate? 25 Country risk analysis and political risk 26 International capital budgeting: the practicalities 27 Financing the multinational and its overseas subsidiaries 28 Financing international trade and minimising credit risk 29 Practical problems in hedging 30 Miscellaneous issues in international finance Suggested answers to end of chapter questions Suggested answers to selected exercises Solutions to multiple choice questions Appendix 1 Present value of $1 Appendix 2 Present value of $1 received annually for n years Appendix 3 Table of areas under the normal curve Appendix 4 Black and Scholes value of call option expressed as a percentage of the share price Appendix 5 Present value of $1 with a continuous discount rate, r, for T periods.  Values of e–rt Appendix 6 Selections from ISO 4217 currency code list, a.k.a. SWIFT codes