International Financial Economics

• Employs a practical, financial perspective with real-world applications
• Offers a detailed description of economic foreign exchange exposure
• Includes expanded material on currency swaps to show their role in foreign exchange exposure management
• Provides additional material on overseas investment decisions when exchange rates are not correctly valued
• An Instructor's Manual is available to adopters.

Thomas J. O'Brien, Chairperson, Finance Department, University of Connecticut

""This text provides an exciting, fresh approach to international financial management. Masterfully written by a recognized leader in the field, International Financial Economics is unique for its clarity, creativity, and coverage. O'Brien explains the material thoroughly, yet concisely, by relying on economic intuition and artfully weaving together theoretical concepts and fascinating examples. The book will be appealing to a variety of audiences. It is appropriately sophisticated for MBA students, but accessible to undergraduates, and up-to-date for practitioners in finance. I highly recommend this text for anyone seeking answers to the complex problems in international finance."—Reid W. Click, George Washington University"

I. FOREIGN EXCHANGE RATES
1.: Introduction to Foreign Exchange
2.: Foreign Exchange and Purchasing Power
3.: Forward Foreign Exchange
4.: Interest Rates and Foreign Exchange
II. LONG-TERM FOREIGN EXCHANGE EXPOSURE
5.: Foreign Exchange Operating Exposure
6.: Debt and Foreign Exchange Exposure
7.: Currency Swaps
8.: Economic Foreign Exchange Exposure
III. COST OF CAPITAL AND CROSS-BORDER INVESTMENTS
9.: Global Finance and the Cost of Capital
10.: Cost of Capital for Overseas Investments
11.: Accounting for Foreign Investments and Hedging
12.: Cross-Border Investment Decisions