International Finance, 5th Edition

The fifth edition of Maurice D. Levi’s classic textbook has been updated to incorporate the massive changes in the world of international finance of the past few years. In particular, the emergence of new markets is given broad coverage – particularly the rise to financial prominence of China and India and other growth economies in Asia and elsewhere. Key features of the book include:

• the impact of globalization and the greater connectedness of national economies and the world economy as a whole
• probably the best introduction to exchange rates available and how they directly impact upon firms as well as governments
• the continued massive impact of multinational corporations on the global financial scene as well as the opportunities presented by e-commerce.

The material is interlaced with a wealth of supplementary material including real world case studies, review questions, examples and objectives. The result is the most authoritative survey of international finance currently available.

Thoroughly updated and with a large amount of new information, this text will prove an indispensable guide to the inner workings of international finance to students of economics and business as well as professionals in the finance industry.

Table of Contents

Part I International financial markets and environment

Chapter 1 The world of international finance

Section I The markets for foreign exchange
Chapter 2 An introduction to exchange rates
Chapter 3 Forward exchange
Chapter 4 Currency futures and options markets

Section II The fundamental international parity conditions
Chapter 5 The purchasing-power parity principle
Chapter 6 Interest parity

Section III The determination of exchange rates
Chapter 7 The balance of payments
Chapter 8 Supply-and-demand view of exchange rates
Chapter 9 Asset-based theories of exchange rates

Section IV Fixed (pegged) and flexible exchange rates
Chapter 10 Alternative systems of exchange rates
Chapter 11 The international financial system: Past, present, and future
Chapter 12 Macroeconomic dimensions of international finance

Part II International financial management

Section V Foreign exchange risk and exposure
Chapter 13 Managing foreign exchange exposure and risk
Chapter 14 Operating exposure

Section VI Hedging and speculation
Chapter 15 Hedging risk and exposure
Chapter 16 Exchange-rate forecasting and speculation

Section VII International investment and financing
Chapter 17 Cash management
Chapter 18 Portfolio investment
Chapter 19 International dimensions of capital budgeting
Chapter 20 The growth of and concerns about multinationals
Chapter 21 International dimensions of long-term financing

Section VIII Institutional structure of international trade and finance
Chapter 22 Multinational banking
Chapter 23 Instruments and institutions of international trade