Focusing on real-life decision making in an international context, this text demystifies and simplifies multinational financial management in a conceptual framework. The approach is to treat international financial management as a natural and logical extension of the principles and valuation framework provided by domestic corporate financial management to account for dimensions unique to international finance. All traditional areas of corporate finance are explored - working capital management, capital budgeting, cost of capital, and financial structure - from the perspective of a multinational corporation. Table of Contents Introduction: Multinational Enterprise and Multinational Financial Management. ENVIRONMENT OF INTERNATIONAL FINANCIAL MANAGEMENT The Determination of Exchange Rates. The International Monetary System. The Balance of Payments and International Economic Linkages. Country Risk Analysis. The Foreign Exchange Market. Currency Futures and Options Markets. Parity Conditions in International Finance and Currency Forecasting. FOREIGN EXCHANGE RISK MANAGEMENT. Measuring Accounting Exposure. Managing Accounting Exposure. Measuring and Managing Economic Exposure. FINANCING FOREIGN OPERATIONS. International Financing and International Financial Markets. Special Financing and Interest Rate Risk Management Vehicles. The Cost of Capital for Foreign Investments. FOREIGN INVESTMENT ANALYSIS. International Portfolio Investment. Corporate Strategy and Foreign Direct Investment. Capital Budgeting for the Multinational Corporation. MULTINATIONAL WORKING CAPTIAL MANAGEMENT. Financing Foreign Trade. Current Asset Management and Short Term Financing. Managing the Multinational Financial System. Glossary. Index.