Multinational Business Finance 6th Ed.

As the field of international finance has evolved, so has the content of Multinational Business Finance. In this sixth edition we continue to identify three major trends and themes that differentiate international financial management from its domestic counterpart.

As in previous editions, we perceive the multinational firm to be a unique institution that acts as a catalyst and facilitator of international trade and as an important producer and distributor in host countries where its affiliates are located. The success of a multinational firm continues to be dependent on its ability to recognize and benefit from imperfections in national markets for products, factors of production, and financial assets. Also carried over from earlier editions is the theme that volatile exchange rates may increase risk, but they also create great opportunities for both investors and firms to profit, given a proper understanding of exchange-risk management.

The sixth edition continues to recognize the increasing importance of global integration of money and capital markets, a trend that is creating expanded opportunities for both investors and organizations that need to raise capital. Although global integration of financial markets removes some market imperfections, which impede the flow of capital internationally, excellent opportunities continue to exist for investors to increase their returns while lowering their risks through international portfolio diversification and for firms to lower their cost of capital by sourcing it internationally.