For undergraduate and graduate students enrolled in an international finance course.
An approach that blends theory and practice with real-world data analysis. International Financial Management seamlesslyblends theory with the analysis of data, examples, and practical case situations. Overall, Bekaert/Hodrick equips future business leaders with the analytical tools they need to understand the issues, make sound international financial decisions, and manage the risks that businesses may face in today’s competitive global environment.
NEW! Provide the latest information:
1.The newest research ideas can be found throughout the second edition. Examples include:
(1)Chapter 7, which contains the discussion of novel research on why the carry trade makes money and the risks involved.
(2)Chapter 10, which presents a discussion of new research on exchange rate determination, explaining why exchange rates are so hard to predict.
(3)Chapter 16, which contains a new terminal value calculation.
2.The global financial crisis has roiled markets and economies, which is why its ramifications are explored in several chapters of this text. Highlights include:
(1)Chapter 1 contains a general discussion of the crisis.
(2)Chapter 2 explores the effects of the crisis on transactions costs in the foreign exchange market.
(3)Chapter 6 covers the breakdown of Covered Interest Rate Parity during the crisis and Chapter 18 examines its effects on trade finance.
(4)Chapter 20 reflects on how emerging market companies dabbling in exotic options got burned when the dollar became a safe haven during the crisis.
3.The increased importance of emerging markets is prominently featured in the new edition. The so-called BRIC’s (Brazil, Russia, India, China) account for increasingly larger portion of the global economy, trade, and financial markets, with China dominating many debates about business. Several of the new illustration boxes and examples provide insights about the Chinese economy and its place in global business. Examples include:
(1)Chapter 1 discusses the attempted take-over of a US oil company by a Chinese company.
(2)The point-counterpoint in Chapter 4 discusses the balance of payments imbalances between the US and China, and their consequences.
(3)Chapters 5 and 12 discuss China’s capital controls and its equity markets, respectively.
(4)Chapter 6 explains how Brazil’s capital controls affect Covered Interest Rate Parity.
Robert J. Hodrick