100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
SOLUTION MANUAL FOR INTERNATIONAL FINANCIAL MANAGEMENT by CHEOL S. EUN. BRUCE G. RESNIC 9th EDITON|| with Elaborate Answers|| latest 2024 $13.69
Add to cart
Quickly navigate to
Preview
  2.  
  3. INTERNATIONAL FINANCIAL MANAGEMENT
  4.  
  5. INTERNATIONAL FINANCIAL MANAGEMENT

Exam (elaborations)

SOLUTION MANUAL FOR INTERNATIONAL FINANCIAL MANAGEMENT by CHEOL S. EUN. BRUCE G. RESNIC 9th EDITON|| with Elaborate Answers|| latest 2024
 0 purchase
  • Course
  • INTERNATIONAL FINANCIAL MANAGEMENT
  • Institution
  • INTERNATIONAL FINANCIAL MANAGEMENT

SOLUTION MANUAL FOR INTERNATIONAL FINANCIAL MANAGEMENT by CHEOL S. EUN. BRUCE G. RESNIC 9th EDITON|| with Elaborate Answers|| latest 2024

Preview 4 out of 184  pages

Document information

  • August 5, 2024
  • 184
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (2)

Written for

  • INTERNATIONAL FINANCIAL MANAGEMENT
  • INTERNATIONAL FINANCIAL MANAGEMENT

Seller

avatar-seller
lauraskyperfect

Reviews received

Content preview

SOLUTION MANUAL FOR
INTERNATIONAL FINANCIAL MANAGEMENT
CHEOL S. EUN. BRUCE G. RESNICK


9th EDITON




IM-1

, TABLE OF CONTENTS



PART ONE Foundations of International Financial Management
Chapter 1: Globalization and the Multinational
Corporate,Chapter 2: International Monetary
System,
Chapter 3: Balance of Payments,
Chapter 4: Corporate Governance Around the World,

PART TWO The Foreign Exchange Market, Exchange Rate Determination, and
Currency Derivatives
Chapter 5: The Market for Foreign Exchange,
Chapter 6: International Parity Relationships and Forecasting Foreign Exchange Rates,
Chapter 7: Futures and Options on Foreign Exchange,

PART THREE Foreign Exchange Exposure and Management
Chapter 8: Management of Transaction Exposure,
Chapter 9: Management of Economic Exposure,
Chapter 10: Management of Translation Exposure,

PART FOUR World Financial Markets and Institutions
Chapter 11: International Banking and Money Market,
Chapter 12: International Bond Market,
Chapter 13: International Equity Markets,
Chapter 14: Interest Rate and Currency Swaps,
Chapter 15: International Portfolio Investment,

PART FIVE Financial Management of the Multinational Corporate
Chapter 16: Foreign Direct Investment and Cross-Border Acquisitions,
Chapter 17: International Capital Structure and the Cost of Capital,
Chapter 18: International Capital Budgeting,
Chapter 19: Multinational Cash Management,
Chapter 20: International Trade Finance




IM-2

, CHAPTER 1 GLOBALIZATION AND THE MULTINATIONAL
CORPORATESUGGESTED RIGHT ANSWERS TO END-OF-
CHAPTER QUESTIONS


QUESTIONS


1. Why is it important TO study international financial management?


RIGHT ANSWER: We are now living in a world where all the major economic functions, i.e.,
consumption, production, and investment, are highly globalized. It is thus essential for financial
managers TO fully understand vital international dimensions of financial management. This global
shift is in marked contrast TO a situation that existed when the authors of this book were learning
finance some twenty years ago. At that time, most professors cusTOmarily (and safely, TO some
extent) ignored international aspects of finance. This mode of operation has become untenable since
then.


2. How is international financial management different from domestic financial management?


RIGHT ANSWER: There are three major dimensions that set apart international finance from
domestic finance.They are:
1. Foreign exchange and political risks,
2. Market imperfections, and
3. Expanded opportunity set.


3. Discuss the three major trends that have prevailed in international business during the last two
decades.


RIGHT ANSWER: The 1980s brought a rapid integration of international capital and financial
markets. Impetus for globalized financial markets initially came from the governments of major
countries that had begun TO deregulate their foreign exchange and capital markets. The economic
integration and globalization that began in the eighties is picking up speed in the 1990s via
privatization. Privatization is the process by which a country divests itself of the ownership and
operation of a business venture by turning it over TO the free market system. Lastly, trade
liberalization and economic integration continued TO proceed at both the regional and global levels.




IM-3

, 4. How is a country’s economic well-being enhanced through free international trade in goods and
services?


RIGHT ANSWER: According TO David Ricardo, with free international trade, it is mutually
beneficial for two countries TO each specialize in the production of the goods that it can produce
relatively most efficiently and then trade those goods. By doing so, the two countries can increase
their combined production, which allows both countries TO consume more of both goods. This
argument remains valid even if a country can produce both goods more efficiently than the other
country. International trade is not a ‘zero-sum’ game in which one country benefits at the expense of
another country. Rather, international trade could be an ‘increasing-sum’ game at which all players
become winners.


5. What considerations might limit the extent TO which the theory of comparative advantage is
realistic?


RIGHT ANSWER: The theory of comparative advantage was originally advanced by the nineteenth
century economist David Ricardo as an explanation for why nations trade with one another. The theory
claims that economic well-being is enhanced if each country’s citizens produce what they have a
comparative advantage in producing relative TO the citizens of other countries, and then trade
products. Underlying the theory are the assumptions of free trade between nations and that the
facTOrs of production (land, buildings, labor, technology, and capital) are relatively immobile. TO
the extent that these assumptions do not hold, the theory of comparative advantage will not
realistically describe international trade.


6. What are multinational corporations (MNCs) and what economic roles do they play?


RIGHT ANSWER: A multinational corporation (MNC) can be defined as a business corporate
incorporated in one country that has production and sales operations in several other countries. Indeed,
some MNCs have operations in dozens of different countries. MNCs obtain financing from major
money centers around the world in many different currencies TO finance their operations. Global
operations force the treasurer’s office TO establish international banking relationships, TO place
short-term funds in several currency denominations, and TO effectively manage foreign exchange
risk.




IM-4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller lauraskyperfect. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.69. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

64302 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

HURST REVIEW NCLEX-RN Readiness Exam 1 (Latest 2024 2025 UPDATES STUDY) Exam Reviews Questions and Verified Answers 100% Correct Grade A

Exam (elaborations) ·

(0)

TEST BANK FOR PRINCIPLES OF RADIOGRAPHIC IMAGING: AN ART AND A SCIENCE, 6TH EDITION, RICHARD R. CARLTON; ARLENE MCKENNA ADLER; VESNA BALAC

Exam (elaborations) ·

(0)

Instructor Manual For OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN DECISIONS & CASES, 8th Edition by Roger Schroeder and Susan Goldstein

Exam (elaborations) ·

(1)

test Bank for Beckmann and Ling’s Obstetrics and Gynecology, 9th Edition by Dr. Robert Casanova, Complete Chapters 1 - 50, Updated Newest Version

Exam (elaborations) ·

(1)

Solutions for Management Control Systems Performance Measurement, Evaluation and Incentives, 5th Edition Merchant (All Chapters included)

Exam (elaborations) ·

(0)

Essentials of Negotiation - Test Bank for sixth edition by Roy J. Lewicki, Bruce Barry, David M. Saunders (Answer Key at every chapter end)

Exam (elaborations) ·

(0)

(Complete Answered) Test Bank Pharmacology A Patient-Centered Nursing Process Approach, 11th Edition by Linda E. McCuistion Chapter 1-58

Study guide ·

(0)

BSC2347 Human Anatomy and Physiology II Module 3 Quiz (2 Latest Versions, 2020): Rasmussen College ( 100% Correct Answers, Download to Score A)

Exam (elaborations) ·

(0)

BEST ANSWERS TEST BANK FOR MATERNITY & WOMEN’S HEALTH CARE, 13TH EDITION BY LOWDERMILK (COMPLETE CHAPTERS) 100% VERIFIED ANSWERS 2024/2025
$13.69
  • (0)
Add to cart
Added