International Financial Management, 3rd Edition by Pearson

International Financial Management, 3rd Edition by Pearson

by Siddaiah
Released December 2021
Publisher(s): Pearson India
ISBN: 9789354494864

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Book description

This is a reproduction of a book published before 1923. This book may have occasional imperfections such as missing or blurred pages, poor pictures, errant marks, etc. that were either part of the original artifact, or were introduced by the scanning process. We believe this work is culturally important, and despite the imperfections, have elected to bring it back into print as part of our continuing commitment to the preservation of printed works worldwide. We appreciate your understanding of the imperfections in the preservation process, and hope you enjoy this valuable book.

Table of contents

  1. Cover
  2. About Pearson
  3. Half Title Page
  4. Title Page
  5. Copyright Page
  6. Dedication
  7. The Prelude
  8. About the Author
  9. Brief Contents
  10. Contents (1/2)
  11. Contents (2/2)
  12. Foreword to First Edition
  13. Preface to Third Edition (1/2)
  14. Preface to Third Edition (2/2)
  15. Preface to Second Edition
  16. Acknowledgements
  17. Testimonials
  18. 1. A Paradigm for Financial Decision Making
    1. 1.1. Multinational Corporations in World Economy
    2. 1.2. Shareholder Wealth Maximization
    3. 1.3. Functions of Finance
      1. 1.3.1. Investment Decision
      2. 1.3.2. Financing Decision
      3. 1.3.3. Dividend Decision
      4. 1.3.4. Liquidity Decision
  19. 1.4. International Finance and Domestic Finance
    1. 1.4.1. Basic Valuation Model
    2. 1.4.2. Risk-free Rate
    3. 1.4.3. Risk Premium
    4. Key Takeaways
    5. QUESTIONS FOR REVIEW
    6. Multiple ChoiCe Questions
    7. Further Reading
  20. 2. Financial Technology
    1. 2.1. Algorithmic Trading
      1. 2.1.1. Trading Platforms and Foreign Exchange Orders
        1. Market Order
        2. Pending Order
        3. Limit Order
        4. Profit Booking Order
        5. Stop Loss Order
        6. Trailing Stop Order
        7. Dependent Order
      2. 2.1.2. Market Analysis
        1. Fundamental Analysis
        2. Technical Analysis
        3. Charting
        4. Support and Resistance
        5. Trading Strategies
    2. 2.2. Blockchain Technology
      1. 2.2.1. Blockchain Technology in Financial Services
        1. Creating New Customers
        2. Cross-border Payments
        3. Customer Identification
        4. Trade Finance
        5. Tokenization
        6. Smart Contracts
        7. Cryptocurrencies
    3. 2.3. Quantum Computing
    4. 2.4. Society for Worldwide Interbank Financial Telecommunications (SWIFT)
      1. Key Takeaways
      2. QUESTIONS FOR REVIEW
      3. Multiple ChoiCe Questions
      4. Further Reading
  21. 3. Foreign Exchange Market Structure
    1. 3.1. The Enablers
    2. 3.2. Currencies of Countries
    3. 3.3. The Foreign Exchange Market
      1. 3.3.1. The Market Across the Zones
      2. 3.3.2. Electronic Trading
      3. 3.3.3. The Market Structure
        1. Market Structure from Different Perspectives
    4. 3.4. The U.S. Dollar as a Vehicle Currency
    5. 3.5. Trends in Foreign Exchange Trading
    6. 3.6. The Foreign Exchange Market in India
      1. 3.6.1. The Market Structure
      2. 3.6.2. Trading Platforms and Settlements
      3. 3.6.3. Telegraphic Transfer (TT) Rates and Bill Rates
      4. 3.6.4. The Market Turnover
      5. 3.6.5. Foreign Exchange Derivatives Market in India
      6. 3.6.6. The Non-deliverable Forward Market (NDF)
      7. 3.6.7. The International Financial Services Centre (IFSC)
      8. Key Takeaways
      9. QUESTIONS FOR REVIEW
      10. Multiple ChoiCe Questions
      11. Further Reading
  22. 4. Foreign Exchange Market Operations
    1. 4.1. Base Currency and Terms Currency
    2. 4.2. American Terms and European Terms
    3. 4.3. Direct Quotes and Indirect Quotes
    4. 4.4. Bid/Ask Rates
    5. 4.5. Pip and Lot
    6. 4.6. Spot and Forward Transactions
    7. 4.7. Foreign Exchange Swaps
    8. 4.8. Cross Rates
      1. Chain Rule
    9. 4.9. Arbitrage
      1. Two-point Arbitrage
      2. Triangular Arbitrage
    10. 4.10. Nostro, Vostro, and Loro Accounts
    11. 4.11. Closing of Positions
      1. Key Takeaways
      2. QUESTIONS FOR REVIEW
      3. MINI CASE
      4. QUESTIONS
      5. Multiple Choice Questions
      6. Further Reading
  23. 5. The International Monetary System
    1. 5.1. The Gold Standard
    2. 5.2. The Gold Exchange Standard
    3. 5.3. The Bretton Woods System
    4. 5.4. Post-Bretton Woods Systems
    5. 5.5. Alternative Exchange Rate Regimes
      1. Floating Exchange Rate
      2. Currency Board
      3. Dollarization
      4. Currency Union
      5. Currency Baskets
      6. Free Float
      7. Managed Float
      8. Currency Pegging
    6. 5.6. The IMF Classification of Exchange Rate Regimes
    7. 5.7. Selection and Management of ExchangeRate Regimes
    8. 5.8. Exchange Rate Policy and Monetary Policy
    9. 5.9. The Par Rate of Exchange
    10. 5.10. Regional Monetary Integration – A Case of theEuropean Union
    11. 5.11. Exchange Rate of the Indian Rupee
    12. 5.12. Depreciation, Appreciation, Devaluation, andRevaluation
      1. Depreciation of Indian Rupee
    13. 5.13. Convertibility of Currency
    14. 5.14. Intervention and Sterilization
      1. Implications of Intervention for Monetary Policy
      2. Sterilization
    15. 5.15. International Liquidity and International Reserves
      1. Measures of Adequacy of Foreign Exchange Reserves
      2. Key Takeaways
      3. QUESTIONS FOR REVIEW
      4. CASE STUDY
      5. QUESTIONS
      6. Multiple ChoiCe Questions
      7. Further Reading
  24. 6. The Balance of Payments: Structure and Implications
    1. 6.1. The Balance of Payments Manual
    2. 6.2. Functions of BoP
    3. 6.3. Principles of BoP
    4. 6.4. The BoP Accounting
      1. 6.4.1. The Current Account
      2. 6.4.2. The Capital Account
      3. 6.4.3. The Financial Account
      4. 6.4.4. The Reserve Account
      5. 6.4.5. Errors and Omissions
    5. 6.5. Current Account, Capital and Financial Account, and Reserve Account: A Relationship
    6. 6.6. National Income and International Transactions
    7. 6.7. The Current Account Deficit
    8. 6.8. The Equilibrium in BoP
    9. 6.9. BoP under Floating Exchange Rate Regime
    10. 6.10. BoP under Fixed Exchange Rate Regime
    11. 6.11. The BoP and Money Supply
    12. 6.12. India’s Balance of Payments
      1. 6.12.1. The BoP Structure
      2. 6.12.2. India’s BoP: An Evaluation
      3. Key Takeaways
      4. QUESTIONS FOR REVIEW
      5. CASE STUDY
      6. QUESTIONS
      7. CASELET
      8. MULTIPLE CHOICE QUESTIONS
      9. Further Reading
  25. 7. International Parity Relationships
    1. 7.1. Exchange Rate Determination
      1. 7.1.1. Demand for Currency
      2. 7.1.2. Supply of Currency
    2. 7.2. Factors Influencing Exchange Rates
      1. 7.2.1. Inflation Rates
      2. 7.2.2. The Economic Size and Growth Rate
      3. 7.2.3. Interest Rates
      4. 7.2.4. Political Factors
      5. 7.2.5. Current Account Deficit
      6. 7.2.6. Social Factors
      7. 7.2.7. Government Controls
    3. 7.3. The BoP Theory of Exchange Rates
    4. 7.4. The Law of One Price
    5. 7.5. The Purchasing Power Parity (PPP) Theory
      1. 7.5.1. Forms of PPP
      2. 7.5.2. The Big Mac Index
      3. 7.5.3. Departures from PPP
    6. 7.6. The Real Exchange Rate
      1. 7.6.1. The Real Effective Exchange Rate (REER)
    7. 7.7. Interest Rates and Exchange Rates
      1. 7.7.1. Interest Rate Parity (1/2)
      2. 7.7.1. Interest Rate Parity (2/2)
    8. 7.8. Forward Rate Parity
    9. 7.9. The Fisher Effect
    10. 7.10. The International Fisher Relation
    11. 7.11. Interrelationship of Parity Conditions
    12. 7.12. Exchange Rate Forecasting
      1. 7.12.1. The Forward Rate as an Unbiased Estimate
      2. 7.12.2. Approaches to Forecasting
        1. The Monetary Model
        2. The Asset Market Model
        3. The Portfolio Balance Model
      3. Key Takeaways
      4. QUESTIONS FOR REVIEW
      5. Multiple ChoiCe Questions
      6. Further Reading
  26. 8. Management of Foreign Exchange Exposure and Risk
    1. 8.1. Foreign Exchange Exposure and Risk: Econometric Analysis
      1. 8.1.1. Foreign Exchange Exposure
      2. 8.1.2. Foreign Exchange Rate Risk
      3. 8.2. Real and Nominal Exchange Rates – A Recap
    2. 8.3. Types of Exposure
      1. 8.3.1. Economic Exposure (1/4)
      2. 8.3.1. Economic Exposure (2/4)
      3. 8.3.1. Economic Exposure (3/4)
      4. 8.3.1. Economic Exposure (4/4)
        1. Transaction exposure
        2. Transaction Exposure – Hedging Instruments
        3. Operating Exposure
      5. 8.3.2. Translation or Accounting Exposure
        1. Current/Noncurrent Method
        2. Monetary/Nonmonetary Method
        3. Temporal Method
        4. Current Rate Method
    3. 8.4. Forecasting Exchange Rates – A Simple Approach
      1. Key Takeaways
      2. QUESTIONS FOR REVIEW
      3. Multiple ChoiCe Questions
      4. Further Reading
  27. 9. Currency Forwards and Futures
    1. 9.1. Currency Forward Contracts
    2. 9.1.1. Forward Premium and Forward Discount
      1. 9.1.2. Expression of Forward Rates
      2. 9.1.3. Valuation of Forward Contract
    3. 9.2. Currency Futures Contracts
      1. 9.2.1. Futures Payoffs
      2. 9.2.2. Long Hedge and Short Hedge
      3. 9.2.3. Futures Exchanges and Standards
      4. 9.2.4. Margins
      5. 9.2.5. Marking to Market
      6. 9.2.6. Settlement
      7. 9.2.7. Limits
      8. 9.2.8. Traders and Trading Operations
        1. Types of Traders
        2. Hedgers
        3. Speculators
        4. Arbitrageurs
      9. 9.2.9. Spreads
      10. 9.2.10. Trading Platforms and Participants
        1. Physical trading
        2. Electronic trading
      11. 9.2.11. Types of Orders
      12. 9.2.12. Clearing House
      13. 9.2.13. Public Quotes
    4. 9.3. Forwards and Futures: A Comparison
      1. 9.3.1. Broad Differences
      2. 9.3.2. Cash Flows under Forwards and Futures
    5. 9.4. Relationship between Spot Rates and Futures Prices
      1. 9.4.1. The Expectation Hypothesis
      2. 9.4.2. The Normal Backwardation Theory
      3. 9.4.3. The Normal Contango Theory
    6. 9.5. Pricing of Currency Futures
    7. 9.6. The Hedge Ratio
    8. 9.7. Cross-Hedging and Delta Cross-Hedging
    9. 9.8. The U.S. Dollar Index (USDX) Futures
    10. 9.9. Currency Futures in India
    11. 9.10. A Glimpse of Two Major Futures Exchanges
      1. 9.10.1. Eurex
      2. 9.10.2. The Chicago Mercantile Exchange (CME)
      3. Key Takeaways
      4. QUESTIONS FOR REVIEW
      5. CASE STUDY
      6. QUESTIONS
      7. Multiple ChoiCe Questions
      8. Further Reading
  28. 10. Currency Options
    1. 10.1. Forms of Options
      1. 10.1.1. Call Options and Put Options
        1. Call and put options as insurance contracts
        2. Alternative scenarios
      2. 10.1.2. Exotic Options
      3. 10.1.3. American-style Options and European-style Options
      4. 10.1.4. Exchange-traded Options and OTC Options
    2. 10.2. In-the-Money, Out-of-the-Money, and At-the-Money
      1. 10.2.1. In-the-Money
      2. 10.2.2. Out-of-the-Money
      3. 10.2.3. At-the-Money
    3. 10.3. Disposing of Options
    4. 10.4. The Chemistry of Options
      1. 10.4.1. The Payoff Profile for the Call Option Buyer
      2. 10.4.2. The Payoff Profile for the Call Option Writer
      3. 10.4.3. The Payoff Profile for the Put Option Buyer
      4. 10.4.4. The Payoff Profile for the Put Option Writer
      5. 10.4.5. Graphical Representation of Payoff Profiles
        1. Short call option
        2. Long call option
        3. Short put option
        4. Long put option
    5. 10.5. Option Value
    6. 10.6. Bounds for Option Prices
      1. Portfolio I
      2. Portfolio II
    7. 10.7. Determinants of Option Price
      1. 10.7.1. Intrinsic Value
      2. 10.7.2. Volatility of the Spot Rate
      3. 10.7.3. Time to Expiration
      4. 10.7.4. The Inflation Rate Differential
      5. 10.7.5. The Interest Rate Differential
      6. 10.7.6. The Strike Price
    8. 10.8. Trading Strategies
      1. 10.8.1. Straddles
      2. 10.8.2. Strangles
      3. 10.8.3. Spreads
        1. Bull spreads
        2. Bear spreads
        3. Butterfly spreads
        4. Calendar spreads
        5. Diagonal spreads
    9. 10.9. The Binomial Option Pricing Model (1/2)
    10. 10.9. The Binomial Option Pricing Model (2/2)
    11. 10.10. The Black-Scholes Valuation Model
    12. 10.11. Put-Call Parity
    13. 10.12. The Greeks
      1. 10.12.1. Delta (1/2)
      2. 10.12.1. Delta (2/2)
      3. 10.12.2. Gamma
      4. 10.12.3. Theta
      5. 10.12.4. Vega
      6. 10.12.5. Rho and Phi
    14. 10.13. Forwards/Futures and Options: A Comparison
    15. 10.14. Futures Options
    16. 10.15. Currency Options Trading in India
      1. Key Takeaways
      2. QUESTIONS FOR REVIEW
      3. CASE STUDY
      4. Multiple ChoiCe Questions
      5. Further Reading
  29. 11 . Financial Swaps
    1. 11.1. Parallel Loans
    2. 11.2. Back-to-Back Loans
    3. 11.3. Types of Swaps
      1. 11.3.1. Interest Rate Swaps
        1. Basis Swaps
        2. Other Types of Interest Rate Swaps
        3. Comparative Advantages in Interest Rate Swaps
        4. Intermediation in Interest Rate Swap Deals
        5. Market Making in Interest Rate Swaps
        6. Swaptions: Options on Interest Rate Swaps
        7. Benefits of Interest Rate Swaps
        8. Value of Interest Rate Swaps
        9. Caps, floors, and collars
      2. 11.3.2. Currency Swaps (1/2)
      3. 11.3.2. Currency Swaps (2/2)
        1. Fixed- to-Fixed Currency Swap
        2. Floating-to-Floating Currency Swap
        3. Fixed-to-Floating Currency Swap
        4. Uses of Currency Swaps
        5. Hedging Bond Payments
        6. Value of Currency Swaps
      4. 11.3.3. Non-deliverable Currency Swaps
      5. 11.3.4. Foreign Exchange Swaps
    4. 11.4. A Swap as a Series of Forward Contracts
    5. 11.5. Market Quotations for Swaps
    6. 11.6. Credit Default Swaps
      1. Guidelines of Reserve Bank of India
      2. USD/INR Buy-Sell Swap
      3. USD/INR Sell-Buy Swap
      4. Key Takeaways
      5. QUESTIONS FOR REVIEW
      6. CASE STUDY
      7. QUESTIONS
      8. MULTIPLE CHOICE QUESTIONS
      9. Further Reading
  30. 12. Interest Rate Futures
    1. 12.1. Interest Rates: Basic Concepts
      1. 12.1.1. Spot Interest Rate and Forward Interest Rate
      2. 12.1.1. Spot Interest Rate and Forward Interest Rate
      3. 12.1.2. Yield Curve
      4. 12.1.3. Holding Period Return
      5. 12.1.4. Credit Spread
      6. 12.1.5. Interest Rate Risk
    2. 12.2. Interest Rate Futures
      1. The conversion factor
      2. Using interest rate futures for hedging
    3. 12.3. Forward Rate Agreement (FRA)
    4. 12.4. Interest Rate Futures (Reserve Bank) Directions, 2013
    5. 12.5. Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019
      1. Eligible Participants
      2. Trading Venues
      3. Transactions by Non-Residents
      4. Key Takeaways
      5. QUESTIONS FOR REVIEW
      6. CASE STUDY
      7. QUESTIONS
      8. Multiple ChoiCe Questions
      9. Further Reading
  31. 13. Cross–border Investment Decisions
    1. 13.1. Capital Budgeting
      1. 13.1.1. Basic Principles for Cash-flow Estimation
        1. Incremental Cash Flows
        2. Opportunity Costs
        3. Sunk Costs
        4. Changes in Net Working Capital
        5. Separation of Investment and Financing Decisions
        6. Replacement Decisions
        7. Non-cash Elements
        8. Tax Effects
      2. 13.1.2. Appraisal of Foreign and Domestic Projects: Distinguishing Factors
        1. Cash Flows
        2. The Discount Rate
    2. 13.2. Approaches to Project Evaluation
      1. 13.2.1. The Net Present Value (NPV) Model
        1. Appraisal from the Project’s Perspective
      2. 13.2.2. The Adjusted Present Value (APV) Model (1/2)
      3. 13.2.2. The Adjusted Present Value (APV) Model (2/2)
    3. 13.3. Risks in Cross-border Investment Decisions
      1. 13.3.1. Political Risk
      2. 13.3.2. Currency Risk
      3. 13.3.3. Inflation Risk
    4. 13.4. Incorporating Risk in Investment Decisions
      1. 13.4.1. Estimating Cash Flows
      2. 13.4.2. Risk-handling Techniques
        1. The Risk-adjusted Discount Rate Approach
        2. The Certainty Equivalent Approach
        3. Sensitivity Analysis
        4. Scenario Analysis
        5. The Decision-tree Approach
    5. 13.5. Real Options
      1. Key Takeaways
      2. QUESTIONS FOR REVIEW
      3. CASE STUDY
      4. QUESTIONS
      5. Multiple ChoiCe Questions
      6. Further Reading
  32. 14. Financing Decisions of MNCs
  33. 14.1. The Cost of Capital
    1. 14.1.1. Components
      1. The Cost of Debt
      2. The Cost of Retained Earnings
      3. The Cost of Equity
    2. 14.1.2. Weighted Average Cost of Capital (WACC)
    3. 14.1.3. Factors Influencing the Cost of Capital
    4. 14.1.4. Differences in Cost of Capital across Countries
    5. 14.1.5. Cost of Capital for MNCs and Domestic Firms
    6. 14.1.6. Cost of Capital: Project versus MNC
  34. 14.2. Capital Structure
    1. 14.2.1. Determining the Capital Structure
    2. 14.2.2. Financing Foreign Subsidiaries or Projects
      1. Matching of Cash Inflows with Cash Outflows
      2. Credit Sponsorship
      3. Internal Financing
      4. Parallel Loans and Credit Swaps
  35. 14.3. Methods of Raising Capital
    1. 14.3.1. Equity Shares
    2. 14.3.2. Depository Receipts
    3. 14.3.3. Eurobonds
    4. 14.3.4. Fixed-rate Bonds
    5. 14.3.5. Floating-rate Notes (FRNs)
    6. 14.3.6. Syndicated Eurocurrency Credit
    7. 14.3.7. Note Issuance Facility (NIF)
    8. Key Takeaways
    9. QUESTIONS FOR REVIEW
    10. Multiple ChoiCe Questions
    11. Further Reading
  36. 15. Management of Working Capital: An International Perspective
    1. 15.1. Cash Management
      1. 15.1.1. Efficiency of Cash Management
      2. 15.1.2. Float
      3. 15.1.3. Cash Collection
      4. 15.1.4. Cash Disbursement
      5. 15.1.5. Netting
      6. 15.1.6. Centralized Cash Management
      7. 15.1.7. Impact of Information Technology on Cash Management
    2. 15.2. Marketable Securities
    3. 15.3. Management of Receivables
      1. 15.3.1. Factoring
      2. 15.3.2. Forfaiting
    4. 15.4. Inventory Management
    5. 15.5. Financing of Current Assets
      1. Key Takeaways
      2. QUESTIONS FOR REVIEW
      3. CASE STUDY
      4. Multiple ChoiCe Questions
      5. Further Reading
  37. 16. International Trade
    1. 16.1. Theories of International Trade
    2. 16.2. Trade Agreements
      1. Transatlantic Trade and Investment Partnership (T-TIP)
      2. Trans-Pacific Partnership (TPP)
      3. Regional Comprehensive Economic Partnership (RCEP)
      4. 16.2.1. World Trade Organization
        1. The Structure of the WTO
        2. Principles of the Trading System
    3. 16.3. Trends in World Trade
    4. 16.4. India’s External Sector
      1. Foreign Trade Policy 2009-14
      2. Foreign Trade Policy 2015-20
    5. 16.5. International Trade Finance
      1. 16.5.1. Advance Payment
      2. 16.5.2. Banker’s Letter of Credit
      3. 16.5.3. Bill of Exchange (Draft)
      4. 16.5.4. Consignment
      5. 16.5.5. Open Account
    6. 16.6. Documents Used in International Trade Finance
      1. 16.6.1. Bill of Lading
      2. 16.6.2. Commercial and Consular Invoice
      3. 16.6.3. Marine Insurance Policy
    7. 16.7. Institutional Credit
      1. 16.7.1. Pre-shipment or Packing Credit
      2. 16.7.2. Post-shipment Credit
      3. 16.7.3. Line of Credit
      4. 16.7.4. Banker’s Acceptance
    8. 16.8. Imports into India: Guidelines for Trade Credit (RBI Circular dated 13 March 2019)
      1. All-in-Cost Ceilings
      2. Hedging Provision
      3. Change of Currency of Borrowing
      4. Guarantee
    9. 16.9. Forfaiting
    10. 16.10. Countertrade
    11. 16.11. Export-Import Bank of India (India Exim Bank)
      1. Functions and Services
    12. 16.12. Export Credit Guarantee Corporation (ECGC)
      1. The Shipments (Comprehensive Risks) Policy
      2. Packing Credit Guarantee
      3. Exchange Fluctuation Risk Cover
      4. Key Takeaways
      5. QUESTIONS FOR REVIEW
      6. CASE STUDY
      7. QUESTIONS
      8. Multiple ChoiCe Questions
      9. Further Reading
  38. 17. Foreign Investment Policy
    1. FDI vs FII
    2. 17.1. Foreign Direct Investment
      1. 17.1.1. Horizontal and Vertical FDI
      2. 17.1.2. Key Drivers of FDI
      3. 17.1.3. Theories of FDI
        1. Internalization Theory
        2. Knickerbocker’s Theory of Oligopolistic Competition
        3. Dunning’s Eclectic Paradigm
        4. Vernon’s Product Life Cycle Theory
      4. 17.1.4. Economic Advantages of FDI
      5. 17.1.5. Limitations of FDI
      6. 17.1.6. Implications of Outward FDI
      7. 17.1.7. Factors Influencing FDI
    3. 17.2. Foreign Investments in India
      1. 17.2.1. FDI Policy
        1. Bottlenecks in FDI flows to India
      2. 17.2.2. Foreign Portfolio Investment Policy
        1. The advantages of FIIs are:
        2. The disadvantages of FIIs are:
        3. Progressive Liberalization for FII/FPI
      3. 17.2.3. External Commercial Borrowing (ECB) and External Commercial Lending (ECL)
      4. 17.2.4. Global Depository Receipts (GDRs)/American Depository Receipts (ADRs)
        1. Framework for Issue of Depository Receipts
      5. 17.2.5. Indian Depository Receipts
        1. Fungibility
      6. 17.2.6. Investment by a Foreign Venture capital Investor (FVCI)
    4. 17.3. Foreign Investments by Indian Companies
      1. Liberalized Remittance Scheme for Resident Individuals
    5. 17.4. The Bilateral Investment Promotion and Protection Agreement
      1. Key Takeaways
      2. QUESTIONS FOR REVIEW
      3. CASE STUDY
      4. Trends in FDI
      5. QUESTIONS
      6. Multiple ChoiCe Questions
      7. Further Reading
  39. 18. Portfolio Theory: An International Perspective
    1. 18.1. The Markowitz Portfolio Model
      1. 18.1.1. Return on Individual Security Investment
      2. 18.1.2. Risk of Individual Security Investment
      3. 18.1.3. Portfolio Return
      4. 18.1.4. Portfolio Risk
      5. 18.1.5. Role of Covariance in Portfolio Risk
      6. 18.1.6. Correlation Coefficient in Portfolio Risk Assessment
      7. 18.1.7. The Efficient Frontier
      8. 18.1.8. The Optimal Portfolio
      9. 18.1.9. The Market Portfolio
    2. 18.2. The Capital Asset Pricing Model
      1. 18.2.1. The Capital Market Line
      2. 18.2.2. The Security Market Line
      3. 18.2.3. Systematic and Unsystematic Risks
    3. 18.3. International Portfolio Diversification
      1. 18.3.1. The International Capital Asset Pricing Model
      2. 18.3.2. Portfolio of Currencies
      3. 18.3.3. International Diversification: Challenges and Opportunities
      4. Key Takeaways
      5. QUESTIONS FOR REVIEW
      6. Multiple ChoiCe Questions
      7. Further Reading
  40. Index (1/2)
  41. Index (2/2)
  42. 1. The Indian Accounting and Taxation System
    1. Introduction
    2. The Accounting Standards Board
    3. Accounting Standard 11*
      1. Recording Transactions on Initial Recognition
      2. Subsequent Reporting
      3. Recognition of Exchange Differences
      4. Forward Exchange Contracts
      5. Translation of the Financial Statements of Foreign Affiliates
      6. Disclosures
    4. Tax Rates in Select Countries
    5. The Taxation System in India
      1. Income Tax
      2. Indirect Taxes
      3. Withholding Tax for NRIs and Foreign Companies
    6. Double-taxation Avoidance Agreement (DTAA)
      1. The Indo-Mauritius Double-taxation Avoidance Treaty
      2. The Singapore–India Double-taxation Avoidance Agreement
      3. Key Takeaways
      4. QUESTIONS FOR REVIEW
      5. CASE STUDY
      6. QUESTIONS
      7. Multiple ChoiCe Questions
      8. Further Reading
  43. 2. Multilateral Financial Institutions
    1. Introduction
    2. The International Bank for Reconstruction and Development
      1. Membership and Organization
      2. Resources
      3. Operations
    3. The International Development Association
      1. Mission and Goal
      2. Organization
      3. Resources
      4. Deployment of Resources
    4. The International Finance Corporation
    5. Mission and Objectives
      1. Objectives:
      2. Strategic Priorities:
      3. Membership and Resources
      4. Organization
      5. Products and Services
    6. The Asian Development Bank
      1. Membership and Organization
      2. Resources
      3. Operations
      4. Millennium Development Goals
    7. The International Monetary Fund
      1. Membership and Organization
      2. Special Drawing Rights
      3. Resources
      4. Operations
      5. The Purchase–Repurchase Mechanism
      6. The IMF and the WTO
      7. Key Takeaways
      8. QUESTIONS FOR REVIEW
      9. Multiple Choic e Questions
      10. Further Reading

Product information

  • Title: International Financial Management, 3rd Edition by Pearson
  • Author(s): Siddaiah
  • Release date: December 2021
  • Publisher(s): Pearson India
  • ISBN: 9789354494864