International Financial Management 3rd edition by Geert Bekaert, Robert Hodrick ISBN 110711182X 9781107111820

1 Globalization and the Multinational Corporation

1.1 Introduction

1.2 Globalization and the Growth of International Trade and Capital Flows

1.3 Multinational Corporations

1.4 Other Important International Players

1.5 Globalization and the Multinational Firm: Benefactor or Menace?

1.6 Overview of the Book

2 The Foreign Exchange Market

2.1 The Organization of the Foreign Exchange Market

2.2 Currency Quotes and Prices

2.3 Inside the Interbank

2.4 Inside the Interbank 

2.5 Describing Changes in Exchange Rates

3 Forward Markets and Transaction Exchange Risk

3.1 Transaction Exchange Risk

3.2 Describing Uncertain Future Exchange Rates

3.3 Hedging Transaction Exchange Risk

3.4 The Forward Foreign Exchange Market

3.5 Forward Premiums and Discounts

3.6 Changes in Exchange Rate Volatility (Advanced)

4 The Balance of Payments

4.1 The Balance of Payments: Concepts and Terminology

4.2 Surpluses and Deficits in the Balance of Payments Accounts

4.3 The Dynamics of the BOP

4.4 Savings, Investment, Income, and the BOP

5 Exchange Rate Systems

5.1 Alternative Exchange Rate Arrangements and Currency Risk

5.2 Central Banks

5.3 Flexible Exchange Rate Systems

5.4 Fixed Exchange Rate Systems

5.5 Limited-Flexibility Systems: Target Zones and Crawling Pegs

5.6 How to See an Emu Fly: The Road to Monetary Integration in Europe

6 Interest Rate Parity

6.1 The Theory of Covered Interest Rate Parity

6.2 Covered Interest Rate Parity in Practice

6.3 Why Deviations from Interest Rate Parity May Seem to Exist

6.4 Hedging Transaction Risk in the Money Market

6.5 The Term Structure of Forward Premiums and Discounts

7 Speculation and Risk in the Foreign Exchange Market

7.1 Speculating in the Foreign Exchange Market

7.2 Uncovered Interest Rate Parity and the Unbiasedness Hypothesis

7.3 Risk Premiums in the Foreign Exchange Market

7.4 Uncovered Interest Rate Parity and the Unbiasedness Hypothesis in Practice

7.5 Empirical Evidence on the Unbiasedness Hypothesis

7.6 Alternative Interpretations of the Test Results

8 Purchasing Power Parity and Real Exchange Rates

8.1 Price Levels, Price Indexes, and the Purchasing Power of a Currency

8.2 Absolute Purchasing Power Parity

8.3 The Law of One Price

8.4 Describing Deviations from PPP

8.5 Exchange Rates and Absolute PPPs Using CPI Data

8.6 Explaining the Failure of Absolute PPP

8.7 Comparing Incomes across Countries