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 continues discussion of international capital markets with a discussion of the structure of the international bond market
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