Instructor’s Resource Manual
J J
Multinational Business J
Finance
Fifteenth Edition
J
David K. Eiteman
J J
University of California, Los Angeles
J J J J
Arthur I. Stonehill
J J
Oregon State University and University of Hawaii at Manoa
J J J J J J J J
, Michael H. Moffett J J
Thunderbird School of Global Management at
J J J J J
Arizona State University
J J J
NewJYork,JNY
ThisJworkJisJprotectedJbyJUnitedJStatesJcopyrightJlawsJandJisJprovidedJsolelyJfo
rJtheJuseJofJinstructorsJinJteachingJtheirJcoursesJandJassessingJstudentJlearnin
g.JDisseminationJorJsaleJofJanyJpartJofJthisJworkJ(includingJonJtheJWorldJWideJW
eb)JwillJdestroyJtheJintegrityJofJtheJworkJandJisJnotJpermitted.J TheJworkJand
materialsJfromJitJshouldJneverJbeJmadeJavailableJtoJstudentsJexceptJby
instructorsJusingJtheJaccompanyingJtextJinJtheirJclasses.J AllJrecipientsJofJthisJw
orkJareJexpectedJtoJabideJbyJtheseJrestrictionsJandJtoJhonorJtheJintendedJpedag
ogicalJpurposesJandJtheJneedsJofJotherJinstructorsJwhoJrelyJonJtheseJmaterials.
ViceJPresident,JBusiness,JEconomics,JandJUKJCourseware:JDonnaJBattista
SeniorJSponsoringJEditor:JNeerajJBhalla
,ManagingJProducer,JBusiness:JAlisonJ Kalil
ContentJProducer:JSugandhJJuneja
ProjectJManager:JDineshJDeivendiran
CopyrightJ©J2019,J2016,J2013JbyJPearsonJEducation,JInc.JorJitsJaffiliates.JAllJRightsJReserved.
ManufacturedJinJtheJUnitedJStatesJofJAmerica.JThisJpublicationJisJprotectedJbyJcopyright,JandJpermissionJ
shouldJbeJobtainedJfromJtheJpublisherJpriorJtoJanyJprohibitedJreproduction,JstorageJinJaJretrievalJsystem,J
orJtransmissionJinJanyJformJorJbyJanyJmeans,Jelectronic,Jmechanical,Jphotocopying,Jrecording,Jor
otherwise.JForJinformationJregardingJpermissions,JrequestJforms,JandJtheJappropriateJcontactsJwithinJtheJPears
onJEducationJGlobalJRightsJandJPermissionsJdepartment,JpleaseJvisit
www.pearsoned.com/permissions/.
UnlessJotherwiseJindicatedJherein,JanyJthird-
partyJtrademarks,Jlogos,JorJiconsJthatJmayJappearJinJthisJworkJareJtheJpropertyJofJtheirJrespectiveJow
ners,JandJanyJreferencesJtoJthird-
partyJtrademarks,Jlogos,Jicons,JorJotherJtradeJdressJareJforJdemonstrativeJorJdescriptiveJpurposesJonly
.JSuchJreferencesJareJnot
intendedJtoJimplyJanyJsponsorship,Jendorsement,Jauthorization,JorJpromotionJofJPearson’sJproductsJbyJtheJ
ownersJofJsuchJmarks,JorJanyJrelationshipJbetweenJtheJownerJandJPearsonJEducation,JInc.,JorJitsJaffiliates,
Jauthors,Jlicensees,JorJdistributors.
ISBN-13:J 978-0-13-479657-4
ISBN-10:J 0-13-479657-8
, Contents
ChapterJ1JMultinationalJFinancialJManagement:JOpportunitiesJandJChallenges ............................. 1
ChapterJ2JTheJInternationalJMonetaryJSystem ................................................................................. 8
ChapterJ3JTheJBalanceJofJPayments ............................................................................................... 13
ChapterJ4JFinancialJGoalsJandJCorporateJGovernance................................................................... 22
ChapterJ5JTheJForeignJExchangeJMarket ....................................................................................... 28
ChapterJ6JInternationalJParityJConditions ...................................................................................... 34
ChapterJ7JForeignJCurrencyJDerivatives:JFuturesJandJOptions...................................................... 41
ChapterJ8JInterestJRateJRiskJandJSwaps ......................................................................................... 46
ChapterJ9JForeignJExchangeJRateJDeterminationJandJIntervention ............................................... 52
ChapterJ10JTransactionJExposure ................................................................................................... 60
ChapterJ11JTranslationJExposure.................................................................................................... 66
ChapterJ12JOperatingJExposure ..................................................................................................... 71
ChapterJ13JGlobalJCostJandJAvailabilityJofJCapital ....................................................................... 76
ChapterJ14JFundingJtheJMultinationalJFirm ................................................................................... 81
ChapterJ15JMultinationalJTaxJManagement ................................................................................... 89
ChapterJ16JInternationalJTradeJFinance ......................................................................................... 97
ChapterJ17JForeignJDirectJInvestmentJandJPoliticalJRisk ............................................................ 101
ChapterJ18JMultinationalJCapitalJBudgetingJandJCross-BorderJAcquisitions .............................. 115
J J
Multinational Business J
Finance
Fifteenth Edition
J
David K. Eiteman
J J
University of California, Los Angeles
J J J J
Arthur I. Stonehill
J J
Oregon State University and University of Hawaii at Manoa
J J J J J J J J
, Michael H. Moffett J J
Thunderbird School of Global Management at
J J J J J
Arizona State University
J J J
NewJYork,JNY
ThisJworkJisJprotectedJbyJUnitedJStatesJcopyrightJlawsJandJisJprovidedJsolelyJfo
rJtheJuseJofJinstructorsJinJteachingJtheirJcoursesJandJassessingJstudentJlearnin
g.JDisseminationJorJsaleJofJanyJpartJofJthisJworkJ(includingJonJtheJWorldJWideJW
eb)JwillJdestroyJtheJintegrityJofJtheJworkJandJisJnotJpermitted.J TheJworkJand
materialsJfromJitJshouldJneverJbeJmadeJavailableJtoJstudentsJexceptJby
instructorsJusingJtheJaccompanyingJtextJinJtheirJclasses.J AllJrecipientsJofJthisJw
orkJareJexpectedJtoJabideJbyJtheseJrestrictionsJandJtoJhonorJtheJintendedJpedag
ogicalJpurposesJandJtheJneedsJofJotherJinstructorsJwhoJrelyJonJtheseJmaterials.
ViceJPresident,JBusiness,JEconomics,JandJUKJCourseware:JDonnaJBattista
SeniorJSponsoringJEditor:JNeerajJBhalla
,ManagingJProducer,JBusiness:JAlisonJ Kalil
ContentJProducer:JSugandhJJuneja
ProjectJManager:JDineshJDeivendiran
CopyrightJ©J2019,J2016,J2013JbyJPearsonJEducation,JInc.JorJitsJaffiliates.JAllJRightsJReserved.
ManufacturedJinJtheJUnitedJStatesJofJAmerica.JThisJpublicationJisJprotectedJbyJcopyright,JandJpermissionJ
shouldJbeJobtainedJfromJtheJpublisherJpriorJtoJanyJprohibitedJreproduction,JstorageJinJaJretrievalJsystem,J
orJtransmissionJinJanyJformJorJbyJanyJmeans,Jelectronic,Jmechanical,Jphotocopying,Jrecording,Jor
otherwise.JForJinformationJregardingJpermissions,JrequestJforms,JandJtheJappropriateJcontactsJwithinJtheJPears
onJEducationJGlobalJRightsJandJPermissionsJdepartment,JpleaseJvisit
www.pearsoned.com/permissions/.
UnlessJotherwiseJindicatedJherein,JanyJthird-
partyJtrademarks,Jlogos,JorJiconsJthatJmayJappearJinJthisJworkJareJtheJpropertyJofJtheirJrespectiveJow
ners,JandJanyJreferencesJtoJthird-
partyJtrademarks,Jlogos,Jicons,JorJotherJtradeJdressJareJforJdemonstrativeJorJdescriptiveJpurposesJonly
.JSuchJreferencesJareJnot
intendedJtoJimplyJanyJsponsorship,Jendorsement,Jauthorization,JorJpromotionJofJPearson’sJproductsJbyJtheJ
ownersJofJsuchJmarks,JorJanyJrelationshipJbetweenJtheJownerJandJPearsonJEducation,JInc.,JorJitsJaffiliates,
Jauthors,Jlicensees,JorJdistributors.
ISBN-13:J 978-0-13-479657-4
ISBN-10:J 0-13-479657-8
, Contents
ChapterJ1JMultinationalJFinancialJManagement:JOpportunitiesJandJChallenges ............................. 1
ChapterJ2JTheJInternationalJMonetaryJSystem ................................................................................. 8
ChapterJ3JTheJBalanceJofJPayments ............................................................................................... 13
ChapterJ4JFinancialJGoalsJandJCorporateJGovernance................................................................... 22
ChapterJ5JTheJForeignJExchangeJMarket ....................................................................................... 28
ChapterJ6JInternationalJParityJConditions ...................................................................................... 34
ChapterJ7JForeignJCurrencyJDerivatives:JFuturesJandJOptions...................................................... 41
ChapterJ8JInterestJRateJRiskJandJSwaps ......................................................................................... 46
ChapterJ9JForeignJExchangeJRateJDeterminationJandJIntervention ............................................... 52
ChapterJ10JTransactionJExposure ................................................................................................... 60
ChapterJ11JTranslationJExposure.................................................................................................... 66
ChapterJ12JOperatingJExposure ..................................................................................................... 71
ChapterJ13JGlobalJCostJandJAvailabilityJofJCapital ....................................................................... 76
ChapterJ14JFundingJtheJMultinationalJFirm ................................................................................... 81
ChapterJ15JMultinationalJTaxJManagement ................................................................................... 89
ChapterJ16JInternationalJTradeJFinance ......................................................................................... 97
ChapterJ17JForeignJDirectJInvestmentJandJPoliticalJRisk ............................................................ 101
ChapterJ18JMultinationalJCapitalJBudgetingJandJCross-BorderJAcquisitions .............................. 115
