Summary And Conclusions

The international firm has a more complicated life than the purely domestic firm. Management must understand the connection between interest rates, foreign currency exchange rates, and inflation, and it must become aware of a large number of different financial market regulations and tax systems. This chapter is intended to be a concise introduction to some of the financial issues that come up in international investing.

Our coverage has been necessarily brief. The main topics we discussed are the following:

1. Some basic vocabulary. We briefly defined some exotic terms such as LIBOR and

Eurocurrency.

2. The basic mechanics of exchange rate quotations. We discussed the spot and forward markets and how exchange rates are interpreted.

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

VIII. Topics in Corporate Finance

22. International Corporate Finance

© The McGraw-Hill Companies, 2002

CHAPTER 22 International Corporate Finance

0 0

Post a comment