Foreign Exchange Rates and International Finance by John N. Kallianiotis
This book deals with international finance and the role of the foreign exchange rates in our economies. It is constituted from twelve chapters, from the history of our monetary system to the balance of payments and from the exchange rates to multinational businesses and their management. The internationalization of business, the interdependence and conflicts among nations, the enormous capital mobility, the foreign exchange market that provides the payments and instruments for all these international transactions, the risk that is involved among markets, economies, and businesses all require studies, instruments, insurance policies, management, correct public policies, and empirical work on international financial transactions, cultures, and the different value systems, so a finance or political science (undergraduate or graduate) student, a professional, a trader, or any other individual interested in international business could be able to deal with all these conflicts, challenges, and adversities, which their trend is incremental. Also, the role of the exchange rate and trade policies in improving the trade account and the social welfare of the country's citizens are considered and examined in detail. Further, the determination and forecasting of the exchange rate are analyzed by using economic theories, mathematics and statistical models. The foreign exchange exposure (risk) is measured and managed by using hedging techniques. The multinational corporations and their cost of capital is covered extensively. The multinational capital budgeting of our MNCs is taking place and the criteria of evaluating the foreign projects are discussed, too. The foreign direct investments (FDI), which increase business, income, and employment in the host countries, the international portfolio theory and its effect on risk minimization from this global diversification are analyzed. The sources and instruments of financing international trade and multinational corporations are presented with the role of commercial banks, money market, and international transportation. Lastly, the political risk involved in different countries is covered and assessed. Thus, this book can be used by itself as a complete text on international finance or can be employed to supplement a reference book devoted to international finance, multinational business, or international financial economics.
ISBN: 9781536165500
Publication Date: 2019-10-15