For undergraduate courses in International Financial Management, International Business Finance, or International Finance

Fundamentals of Multinational Finance helps prepare tomorrow's business leaders to comprehend global markets and lead organisations through a constantly changing global environment. Via illuminating case studies and real­-world examples, students are introduced to the fundamental concepts and tools necessary to implement an effective global financial management strategy. The 6th Edition reflects the juxtaposed forces of an increasingly digital global marketplace and a resurgence of nationalist culture and identity. Financial forces, markets, and management are in many ways at the crux of this challenge. This edition reflects a business world trying to find a new balance between business startups like the micro-multinational, a maturing China, a separatist Britain (Brexit), and an attempt by governments globally to channel, regulate (and tax) multinational firms that continue to grow in stature and strength.

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Key features

This edition explores the management challenges faced by today's business leaders by focusing on the following three themes:

• Organisations. Multinational enterprises (MNEs) apply to organisations of all kinds - the publicly traded, the privately held, the state-­run, the state-­owned organisations - all forms that permeate global business today.
• Markets. Country markets like that of China and India are no longer the sources of low­-cost labour for global manufacturers. They are increasingly the focus for sales and growth of all firms, manufacturing and services, for earnings and growth. Although they may still be categorised as 'emerging,' they are the economic drivers and primary challenges for global finance and global financial management.
• Financial leadership. The leaders of MNEs face numerous foreign exchange and political risks. These risks can be daunting, but they also present opportunities for creating value if properly understood. These opportunities and risks are most effectively understood in the context of the global business itself, and the ability of management to integrate the strategic and financial challenges that business faces.

New to this edition

• Interest Rate Risk and Swaps. A new chapter has been introduced that details the various interest rate risks of the MNE and the practical use of interest rate and cross-currency swaps.
• The Impossible Trinity. A core international financial principle, the Impossible Trinity's use as a unifying theoretical link across multiple subjects and chapters, has been expanded.
• The Foreign Exchange Market and Digital Trade. New material in this edition explores in depth how the changing structure of the global foreign exchange market - trading, communication, and settlement - is posing challenges for private players and public regulators and overseers.
• International Taxation. Integrally linked to a world of digital commerce, multinational tax management continues to rise in its significance in multinational financial management. We have greatly expanded our coverage of this truly critical financial management topic.
• Political Risk and Financial Losses. The chapter on foreign direct investment and political risk has been revised to reflect the growing use of restrictions on convertibility, transferability, and the possibility of repudiation or expropriation.
• Edgier Mini-Cases. Eleven of the eighteen mini-cases are completely new to the 6th edition, and explore many of the edgier debates rising between global business, social policy, and corporate social responsibility. Topics include Argentine debt and vulture investors, Apple's global profit positioning and tax structure, Brexit and its potential impact on Rolls Royce, Volkswagen's governance structure and its defeat device 'strategy,' political risk in Kazakhstan's oil and gas industry, and crowdfunding startups in Kenya, to name but a few.
• Expanded Quantitative Applications. We have worked diligently to increase the quantitative elements across subjects and chapters to push students to explore the depth of analysis and comprehension.