PART I: INTRODUCTION TO FOREIGN EXCHANGE MARKETS AND RISKS Chapter 1: Globalization and the Multinational Corporation Chapter 2: The Foreign Exchange Market Chapter 3: Forward Markets and Transaction Exchange Risk Chapter 4: The Balance of Payments Chapter 5: Exchange Rate Systems PART II: INTERNATIONAL PARITY CONDITIONS AND EXCHANGE RATE DETERMINATION Chapter 6: Interest Rate Parity    Chapter 7: Speculation and Risk in the Foreign Exchange Market Chapter 8: Purchasing Power Parity and Real Exchange Rates Chapter 9: Measuring and Managing Real Exchange Risk Chapter 10: Exchange Rate Determination and Forecasting PART III: INTERNATIONAL CAPITAL MARKETS Chapter 11: International Debt Financing Chapter 12: International Equity Financing Chapter 13: International Capital Market Equilibrium Chapter 14: Political and Country Risk PART IV: INTERNATIONAL CORPORATE FINANCE Chapter 15: International Capital Budgeting Chapter 16: Additional Topics in International Capital Budgeting Chapter 17: Risk Management and the Foreign Currency Hedging Decision Chapter 18: Financing International Trade Chapter 19: Managing Net Working Capital PART V: FOREIGN CURRENCY DERIVATIVES Chapter 20: Foreign Currency Futures and Options Chapter 21: Interest Rate and Foreign Currency Swaps

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 seamlessly blends 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. All data in this edition has been updated to reflect the most recent information, including coverage on the latest research, global financial crisis, and emerging markets. Offer the pedagogy students need for success : Real Data Analysis. The authors have incorporated the analysis of data in each relevant chapter, allowing students to learn how well—or poorly—current theories are supported by the data. Extended Cases. Where relevant, the authors introduce and solve intricate cases that illustrate the application of theory. These case solutions serve as templates for future analysis.Point-Counterpoint. These features raise issues that are contentious and not fully resolved or understood by the academic or practitioner. Each story ends by summarizing the subtle, but state-of-the-art thinking on the issue.Concept Boxes. These boxes are provided to serve two purposes throughout the text: They contain concrete historical or current illustrations of important concepts introduced during the chapter.They explore and illustrate basic finance concepts that are used in the chapter. End-Of-Chapter Questions. At the end of each chapter, a set of interesting questions and problems are presented, designed to help ensure students that they have mastered the chapter material. NEW! Provide the latest information : The newest research ideas can be found throughout the second edition. Examples include: Chapter 7, which contains the discussion of novel research on why the carry trade makes money and the risks involved.Chapter 10, which presents a discussion of new research on exchange rate determination, explaining why exchange rates are so hard to predict.Chapter 16, which contains a new terminal value calculation.The global financial crisis has roiled markets and economies, which is why its ramifications are explored in several chapters of this text. Highlights include: Chapter 1 contains a general discussion of the crisis.Chapter 2 explores the effects of the crisis on transactions costs in the foreign exchange market.Chapter 6 covers the breakdown of Covered Interest Rate Parity during the crisis and Chapter 18 examines its effects on trade finance.Chapter 20 reflects on how emerging market companies dabbling in exotic options got burned when the dollar became a safe haven during the crisis. 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: Chapter 1 discusses the attempted take-over of a US oil company by a Chinese company.The point-counterpoint in Chapter 4 discusses the balance

NEW! Provide the latest information : The newest research ideas can be found throughout the second edition. Examples include: Chapter 7, which contains the discussion of novel research on why the carry trade makes money and the risks involved.Chapter 10, which presents a discussion of new research on exchange rate determination, explaining why exchange rates are so hard to predict.Chapter 16, which contains a new terminal value calculation.The global financial crisis has roiled markets and economies, which is why its ramifications are explored in several chapters of this text. Highlights include: Chapter 1 contains a general discussion of the crisis.Chapter 2 explores the effects of the crisis on transactions costs in the foreign exchange market.Chapter 6 covers the breakdown of Covered Interest Rate Parity during the crisis and Chapter 18 examines its effects on trade finance.Chapter 20 reflects on how emerging market companies dabbling in exotic options got burned when the dollar became a safe haven during the crisis. 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: Chapter 1 discusses the attempted take-over of a US oil company by a Chinese company.The point-counterpoint in Chapter 4 discusses the balance of payments imbalances between the US and China, and their consequences.Chapters 5 and 12 discuss China’s capital controls and its equity markets, respectively.Chapter 6 explains how Brazil’s capital controls affect Covered Interest Rate Parity.