Multinational Firm Chapter Objectives: Understand why it is important to study international finance.Distinguish international finance from domestic finance

Chapter Objective: This chapter serves to introduce the student to the balance of payments. How it is constructed and how balance of payments data may be interpreted

Chapter Objective: This chapter examines several key international parity relationships, such as interest rate parity and purchasing power parity

Chapter Objective: This chapter continues discussion of international capital markets with a discussion of the structure of the international bond market

Chapter Objective: This chapter discusses exchange-traded currency futures contracts, options contracts and options on currency futures

1. Why investors diversify their portfolios internationally. 2. How much investors can gain from international diversification. 3. The effects of fluctuating exchange rates on international portfolio investments. 4. Whether and how much investors can benefit from investing in U.S. based international mutual funds. 5. The reasons for \home bias\ in portfolio holdings

Chapter Objective This chapter discusses various methods available forthe management of transaction exposure facingmultinational firms

Chapter Objective: This chapter discusses various issues associated with foreign direct investments by MNCs, which play a key role in shaping the nature of the emerging global economy

Chapter Objective: This chapter discusses the methodology that a multinational firm can use to analyze the investment of capital in a foreign country

Chapter objective This chapter discusses the microstructure of international trade