Thomas J. O'Brien

This text is designed for use in a course in an applied international corporate finance for managers and executives. Instead of the “encyclopedic” approach, the text focuses on the two main issues of interest to managers who deal with overseas operations. The first main issue is how uncertain foreign exchange (FX) rate changes affect a firm’s ongoing cash flows and equity value, and what can be done about that risk. The second main issue is the estimation of the cost of capital for international operations and the evaluation of overseas investment proposals. Numerous examples of real world companies are used. The text is divided into two parts based on the two main issues. Each part includes a case that unifies the ideas. In Part I, the case company has overseas operations and is faced with ongoing FX exposure in corporate revenues. The decision-maker estimates the FX exposure and considers financial hedging using foreign currency debt and currency swaps. The accounting implications are also considered. In Part II, the case company evaluates a proposal to expand production for a foreign market, with location alternatives being the home country, the foreign market country, or a “cheap-labour” emerging market country.

As managers expand their international business operations, they are confronted by the puzzling and vexing world of foreign exchange (FX) rates. This book is designed as a resource that can help managers quickly understand and navigate the FX market. The text may be used as an introductory module in a course in international finance, whether the course is oriented to international markets, international investments, or international corporate finance. The primary intended audience is an applied MBA course aimed at executives, managers, and would-be managers. After an introduction to FX rates, the author covers the important topic FX rate valuation. It is important for managers to understand when an FX rate may be incorrectly valued, as this situation may have a bearing on corporate decisions on strategy, risk management, capital structure, and overseas investments and operations. He also discusses the mechanics of forward FX contracts and their use in managing the risk of future foreign currency cash flow and includes a case that unifies the ideas. The case company is faced with FX exposure in the revenues from a proposed new foreign customer. The decision maker applies the text material to estimate whether the FX rate is over-, under-, or correctly valued. The final decisions are whether to expand sales to the foreign market and whether to hedge the FX risk.

THE chief purpose of compiling this Advanced Catechism is to supply a need felt in the higher grades of our Catholic schools. The study of the Third Plenary Council Catechism is usually completed in the fifth or sixth school year. It is thought that a supplementary text for use in the remaining grades will prove more serviceable to teachers and pupils, if it follows the order of the authorized Catechism, utilizes the text with which the pupils are already familiar, and carries them forward by a reasonably limited development of the doctrines and practices of the Church. Moreover, the explanations and illustrations of the authorized text will make the Advanced Catechism useful to teachers who use the Baltimore Catechism, and suggestive to priests who are directing their converts in the study of the same. The questions and answers of the Baltimore Catechism are numbered and form the basis of the present work, in which the additional questions and answers are intended to be either explanatory or supplementary, within the limits of school study. Illustrations are drawn from Holy Scripture, Church History. and the Lives of the Saints; and applications are made to the more important and approved practices of Catholic piety. Scriptural texts and references are given; the feast days of many saints are indicated; the devotions of the Church are recalled when the doctrines on which they rest are the subject-matter of the text; and in the Appendix will be found a collection of approved prayers and a brief statement of subjects intimately related to the text of the catechism and referred to therein. In a word, the aim of the Advanced Catechism is to show that the feasts, devotions, and practices of the Church, together with the duties of the Christian life, are the logical outgrowth of the revealed truths of Faith and Morals. In this way, it is hoped, the advanced pupils will be able to see clearly the intimate relations between Catholic Faith and Practice, and will grow in admiration and love of the living and practical truths taught and enforced by the Church. In compiling this Advanced Catechism, as an aid in the all-important work of Religious Instruction in our schools, the Catechism of the Council of Trent, Spirago-Clarke's " The Catechism Explained", Howe's "The Catechist" and Kinkead's "Explanation of the Baltimore Catechism" are chief among the catechetical works that afforded many useful suggestions. Reference to their Indexes will direct the teachers, who use this book, to that fuller doctrinal treatment and practical illustration, which exceed the limits of this little work.

This text is designed for use in a course in an applied international corporate finance for managers and executives. Instead of the encyclopedic approach, the text focuses on the two main issues of interest to managers who deal with overseas operations. The first main issue is how uncertain foreign exchange (FX) rate changes affect a firm's ongoing cash flows and equity value, and what can be done about that risk. The second main issue is the estimation of the cost of capital for international operations and the evaluation of overseas investment proposals. Numerous examples of real world companies are used. The text is divided into two parts based on the two main issues. Each part includes a case that unifies the ideas. In Part I, the case company has overseas operations and is faced with ongoing FX exposure in corporate revenues. The decision-maker estimates the FX exposure and considers financial hedging using foreign currency debt and currency swaps. The accounting implications are also considered. In Part II, the case company evaluates a proposal to expand production for a foreign market, with location alternatives being the home country, the foreign market country, or a cheap-labor emerging market country.

As managers expand their international business operations, they are confronted by the puzzling and vexing world of foreign exchange (FX) rates. This text is designed as a resource that can help managers quickly understand and navigate the FX market. The text may be used as an introductory module in a course in international finance, whether the course is oriented to international markets, international investments, or international corporate finance. The primary intended audience is an applied MBA course aimed at executives, managers, and would-be managers. After an introduction to foreign exchange (FX) rates, the text covers the important topic FX rate valuation. It is important for managers to understand when an FX rate is incorrectly valued, as this situation may have a bearing on strategic decisions to operate or invest overseas. The text also covers the mechanics of forward FX contracts, and their use in managing the risk of future foreign currency cash flows. In the case study included in the text, the case company is faced with FX exposure in the revenues of a proposed new foreign customer. The decision-maker applies the text material to evaluate whether the FX rate is over-, under-, or correctly valued. The final decision is whether to expand sales to the foreign market and whether to hedge the FX risk.

Completely updated and revised, the second edition of International Financial Economics: Corporate Decisions in Global Markets applies the principles of financial economics to explain how international corporate finance decisions are made in the real world. Written from a practical, financial perspective versus one of pure economic theory, the text is divided into three sections. The first section provides a comprehensive discussion of exchange rates. The next section offers an in-depth look at a firm's foreign exchange exposure measurement and hedging. The material highlights the connection between foreign exchange exposure in profit and foreign exchange exposure in equity, as well as the impact of foreign currency debt and currency swaps. The third section examines overseas investment decisions in both countries integrated with the global financial market and those still segmented from it. Coverage emphasizes the cost of capital and accounting for overseas investments and hedging of foreign exchange risk. International Financial Economics: Corporate Decisions in Global Markets is ideal for advanced undergraduate and graduate courses in global financial management. Features BLEmploys a practical, financial perspective with real-world applications BLIncludes expanded material on currency swaps to show their role in foreign exchange exposure management BLOffers a detailed description of economic foreign exchange exposure BLProvides additional material on overseas investment decisions when exchange rates are not correctly valued