chap_18 - Chapter 18 INTERNATIONAL ASPECTS OF FINANCIAL...

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Chapter 18 INTERNATIONAL ASPECTS OF FINANCIAL MANAGEMENT SLIDES CHAPTER WEB SITES Web sites may be referenced more than once in a chapter. This table just includes the section for the first reference. Chapter Section Web Address 18.1 www.adr.com www.hsh.com 18.2 www.internationalist.com/business www.swift.com www.bloomberg.com/markets/currency/currcalc.html www.xe.com www.exchangerate.com www.stls.frb.org www.ft.com 18.4 www.bloomberg.com/markets.iyc.html 18.1 Key Concepts and Skills 18.2 Chapter Outline 18.3 Domestic versus International Financial Management 18.4 International Finance Terminology 18.5 Global Capital Markets 18.6 Example: Work the Web 18.7 Exchange Rates 18.8 Example: Exchange Rates 18.9 Example: Triangle Arbitrage 18.10 Transaction Terminology 18.11 Absolute Purchasing Power Parity 18.12 Relative Purchasing Power Parity 18.13 Example: PPP 18.14 Covered Interest Arbitrage 18.15 Example: Covered Interest Arbitrage 18.16 Interest Rate Parity 18.17 Short-Run Exposure 18.18 Long-Run Exposure 18.19 Translation Exposure 18.20 Managing Exchange Rate Risk 18.21 Political Risk 18.22 Quick Quiz
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A-222 INTERNATIONAL ASPECTS OF FINANCIAL MANAGEMENT www.travlang.com/money CHAPTER WEB SITES - CONTINUED Chapter Section Web Address 18.4 cbs.marketwatch.com What’s On the Web? www.economist.com www.marketvector.com CHAPTER ORGANIZATION 18.1 Terminology 18.2 Foreign Exchange Markets and Exchange Rates Exchange Rates Types of Transactions 18.3 Purchasing Power Parity Absolute Purchasing Power Parity Relative Purchasing Power Parity 18.4 Exchange Rates and Interest Rates Covered Interest Arbitrage Interest Rate Parity 18.5 Exchange Rate Risk Short-Run Exposure Long-Run Exposure Translation Exposure Managing Exchange Rate Risk 18.6 Political Risk ANNOTATED CHAPTER OUTLINE Slide 18.1 Key Concepts and Skills Slide 18.2 Chapter Outline Slide 18.3 Domestic versus International Financial Management 18.1. Terminology -American Depository Receipt (ADR) – security issued in the U.S. that represents shares in a foreign company -Cross-rate – exchange rate between two currencies implied by the exchange rates of each currency with a third
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CHAPTER 18 A-223 -Eurobond – bonds issued in many countries but denominated in a single currency -Eurocurrency – money deposited in the bank of a foreign country (dollars deposited in a French bank are called Eurodollars) Slide 18.4 International Finance Terminology Lecture Tip, page 539: Although the definition of Eurodollars is “deposits of U.S. dollars in banks located outside the United States,” you should emphasize that Eurodollars are not actual U.S. currencies deposited in a bank, but are bookkeeping entries on a bank’s ledger. These deposits are loaned to the Euro bank’s U.S. affiliate to meet liquidity needs, or the funds might be loaned to a corporation abroad that needs the loan denominated in U.S. dollars. Money does not normally leave the country of its
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chap_18 - Chapter 18 INTERNATIONAL ASPECTS OF FINANCIAL...

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