Multinational Financial Management [Hardcover]

Alan C. Shapiro (Author), Marissa Ryan (Author)

Book Description

ISBN-10: 0471366102 | ISBN-13: 978-0471366102 | Publication Date: November 15, 1999 | Edition: 6th

This work provides a conceptual framework within which key financial decisions of the multinational firm can be analyzed. It treats international financial management as a natural and logical extension of the principles learned in the foundations course in financial management.

Editorial Reviews

From the Publisher

Grounded in modern financial theory, this highly acclaimed text provides a conceptual framework wherein the key financial decisions of the multinational firm can be analyzed. As in previous editions, the book's approach treats international financial management as a natural and logical extension of principles learned in the foundations of financial management course. This Fifth Edition has been thoroughly updated and improved to reflect the most recent developments in the field and enhance overall learning. --This text refers to an out of print or unavailable edition of this title.

From the Back Cover

Specific guidelines for making financial decisions in an international context
Learn how to make sound financial decisions in the multinational firm with Alan Shapiro’s Eighth Edition of Multinational Financial Management. Shapiro provides a clear conceptual framework for analyzing key financial decisions in multinational firms–a framework that you can rely on throughout your career.

Keep up with current financial events around the globe.
The new Eighth Edition is thoroughly updated with enhanced discussions of the impact of China on the international financial system, current issues facing the euro, the debate over outsourcing, the political considerations underlying the debate over protectionism, the competitive devaluations during 2003, and more.

 Make smart decisions.
Multinational Financial Management focuses on decision making in an international context. The text presents analytical techniques that translate the often vague rules of thumb used by international financial executives into specific decision criteria.

Learn how to take advantage of being multinational.
Too often companies focus on the threats and risks inherent in venturing abroad. In contrast, Alan Shapiro emphasizes the opportunities that are available to multinational firms, such as the ability to obtain a greater degree of international diversification and the ability to arbitrage between imperfect capital markets.

Examine real international financial problems.
Throughout the text, a variety of real-life cases and examples, including new mini-cases in most chapters, demonstrate how to use financial analysis and reasoning to solve real international financial problems. --This text refers to an alternate Hardcover edition.

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Product Details

• Hardcover: 824 pages
• Publisher: John Wiley & Sons Inc; 6th edition (November 15, 1999)
• Language: English
• ISBN-10: 0471366102
• ISBN-13: 978-0471366102
• Product Dimensions: 9.2 x 7.5 x 1.5 inches
• Shipping Weight: 3.1 pounds
• Average Customer Review: 4.4 out of 5 stars  See all reviews (13 customer reviews)
• Amazon Best Sellers Rank: #3,740,014 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

7 of 7 people found the following review helpful:

4.0 out of 5 stars Good Introduction to the Subject, in Some Parts too Brief, December 13, 2004

By 

Eric Dubuis (Tinton Falls, NJ United States) - See all my reviews
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This review is from: Multinational Financial Management (Hardcover)

The book "Multinational Financial Management" is a good introduction to this rather complex subject. It is written well and contains a lot of examples and historical references. Some of the chapters in the second part are kept a tad too short though.

The book covers the main topics of international financial management, the environment of international financial management, foreign exchange and derivatives market and risk management, financing of multinational corporations, foreign investment analysis and multinational working capital management in 5 main sections.

I found most parts of the text to be very well readable and easy to understand. All concepts are backed up by examples and separate illustrations discussing a real event in more or less detail. This works especially well in the first chapters of the text covering the simpler concepts. Subjects like international monetary systems or country risk analysis (to just mention a few) are covered in great detail, and the required math, e.g. the formulas used for the parity conditions and the Fisher Effect, are illustrated with enough examples even for someone with little or no mathematical background.

The parts of the book covering derivatives is too short and the theory provided does not go deep enough in order to comprehend the more complex examples easily. Trying to figure out the mechanics of Kodak's Zero Coupon Australian Dollar Interest Rate/Currency Swap involving 11 parties, multiple swaps and currencies was no easy task after a mere 2 1/2 page theoretical introduction to currency swaps. There are better books for understanding currency swaps.

Other parts not covered deep enough were the chapters on international project and firm evaluation (covering subject like WACC and CAPM). With just this book, it is impossible to get an idea of the real meaning of these models and techniques. Too many details are omitted that should have been covered. Granted, these are more complex subjects, but maybe the author should have either keep the book focused on the main topics or split the content over two books.

Overall, the first part of the book is very useful, but the more complex subjects are not covered with the depth they require.

7 of 8 people found the following review helpful:

4.0 out of 5 stars Sometimes Wordy, August 21, 2005

By 

C. Ang "cliff_ang" (Chicago, IL) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: Multinational Financial Management (Hardcover)

This is one of the better books for a course in international finance. It has cases in the text, which allows the student to get the real world intuition of the topics that are being covered. This is not a text that only extends capital budgeting to an international setting, it also includes some concepts borrowed from international economics (e.g. purchasing power parity, interest rate parity, covered interest arbitrage, etc.). It also looks into some risk management practices that are relevant for multinational corporations. However, I feel that some topics could have been cut short and the author just wanted to add a few (hundred) more pages to the text.

5 of 6 people found the following review helpful:

1.0 out of 5 stars Verbose and Obtuse, November 14, 2006

By 

Connolly Joseph (Zurich, Switzerland) - See all my reviews
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This review is from: Multinational Financial Management (Hardcover)

I used this book for the first and last time in Autumn term 2006 with 28 foreign students in my Global Finance MBA course. When one wishes to make money by consistently reissuing new editions he has an obligation to update it at least minimally, (The Paul Samuelson Rule). In this case Greed is not good.

Hence, my exasperation when I open the 2006 edition of the book and on the first page learn that the currency of Belgium is the Belgian franc, the currency of Ireland is the pound,(Ireland's curency was never the pound; it was the punt) or that Germany still has the DM. Many of students lost points on a midterm because they thought the currency of Finland is is the markka. Shapiro in 2006 says so. On the next page he fails to mention Monaco; there are a lot of capital flows internationally through Monoco. And on that page Spain still has a peseta.Portugal has escudos.

The book also suffers from wordiness. I did like the key phrases section in each chapter; I thought at least that all key phrases would be included in the glossary but I could find all there. There is a certain obtuseness which I did find perplexed my students sometimes, who did not quite enjoy this book as I had hoped. We would not use it again.

I tried to contact the author by email with several queries but did not experience the courtesy of a reply.