Preface
PART I INTERNATIONAL ECONOMIC ENVIRONMENT
Chapter 1. Introduction to International Finance
Chapter 2. Balance of Payment
Chapter 3. International Monetary Systems
Chapter 4. Exchange Rate Systems
PART II FOREIGN EXCHANGE MARKETS AND EQUILIBRIUM
Chapter 5. Foreign Exchange Rates and Markets
Chapter 6. International Parity Conditions
Chapter 7. Exchange Rate, Economic and Monetary Policies
PART III FOREIGN EXCHANGE DERIVATIVES
Chapter 8. Currency Forwards and Futures
Chapter 9. Currency Options
Chapter 10. Currency and Interest Rate Swaps
Chapter 11. Interest Rate Risk and Hedging
PART IV FOREIGN EXCHANGE RISK MANAGEMENT
Chapter 12. Measurement and Management of Transaction Exposure
Chapter 13. Measurement and Management of Translation and Economic Exposure
Chapter 14. Political and Country Risk
PART V INTERNATIONAL FINANCIAL MARKETS AND CONTROLS
Chapter 15. International Debt Markets
Chapter 16. International Equity Investment
Chapter 17. Foreign Direct Investment
Chapter 18. Managing Capital Flows
PART VI MULTINATIONAL FINANCIAL MANAGEMENT
Chapter 19. Capital Asset Pricing Model—Local and Global
Chapter 20. Cost of Capital and Capital Structure for Multinational Firms
Chapter 21. International Capital Budgeting
Chapter 22. Financing Foreign Trade
Chapter 23. Taxation and Transfer Pricing in India
Chapter 24. Accounting for International Operations
Index

International Finance is a comprehensive textbook designed to meet the requirements of postgraduate management students specializing in finance. It deals with the dynamics of the global financial system, international monetary systems, balance of payments, exchange rates, foreign direct investment, and their relation to international trade.

The book is divided into six parts. Part I, International Economic Environment, explains the working of a multinational firm in an international environment, balance of payments, international monetary systems, and exchange rate systems. Part II, Foreign Exchange Markets and Equilibrium, covers the nature of foreign exchange markets and theories for determining the exchange rates in the market. This part also elaborates on international parity conditions such as the law of one price and the Fisher effect. Part III, Foreign Exchange Derivatives, gives an insight into currency forwards, futures, options, swaps, and interest rate derivatives. Part IV, Foreign Exchange Risk Management, covers transaction, translation, and economic exposure along with political risk in the financial markets. Part V, International Financial Markets and Controls, explains cost of capital, its structure, and international capital budgeting. Foreign direct investments and capital controls influencing the markets are also discussed in this part. Finally, Part VI, Multinational Financial Management, deals with international trade finance, transfer pricing and international accounting, and taxation.

Owing to its comprehensive coverage and real-life examples, exhibits, solved exercises, and graphs, students as well as young professionals will find this book equally useful.