John N. Kallianiotis, PhD – Professor, The Arthur J. Kania School of Management, University of Scranton, Scranton, PA, USA

Series: Business, Technology and Finance
BISAC: BUS069020; BUS027000; BUS035000
DOI: https://doi.org/10.52305/FXTZ1367

“This book presents not only the theories of international finance but also the empirical studies that support the theories and the econometric techniques that an interested researcher can employ to produce original work. Thus, this book can be very useful, first, to every undergraduate student who studies finance, economics, and international finance, second, to graduate students and financial analysts who are interested in doing high quality research in finance, and third, to all individual investors who want to understand how globalization affects the return, the risk, and the optimal level of diversification of their investment portfolio.” – Dr. Christos Pargianas, University of Scranton, Scranton, Pennsylvania, USA

“This is a comprehensive book which seamlessly includes past research, mathematical equations, forecasting techniques, economic and financial models as well as current events to fully explore in great detail and from multiple facets the topics revolving around foreign exchange. The students will truly benefit not only from the fully-detailed explanations of the theories, but also benefit from the graphs, data and references—all supporting and enhancing their knowledge of the presented concepts. Congratulations on yet another great textbook!” – Dr. Mary L. Lo Re, Dean, Touro University Graduate School of Business, New York, NY, USA

“The second edition of the highly successful book, Foreign Exchange Rates and International Finance, by Dr. John N. Kallianiotis deals with the financial aspects of international trade in a very comprehensive and easy to follow way. The book provides a very useful and timely coverage of key aspects of international finance. Topics such as the balance of payments, exchange rate determination and parity conditions and the risk exposure of multinational corporations are covered extensively and in a very concise manner. The book is highly recommended for practitioners, students and scholars interested in matters pertaining to international finance.” – Dr. Gregory Koutmos, Fairfield University, Fairfield, CT, USA

Foreign Exchange Rates and International Finance (Second Edition) includes updated information on economic, financial, and global events that have taken place in the past six years. It can be used by international financial market traders and practitioners, global company executives, and policymakers as well as undergraduate and graduate students. This book aims to equip current and future leaders in business, banking, and finance with mathematics, statistics, econometrics and data sources that they need to analyze, measure, and forecast international variables.

Readers will learn about the history of the monetary system and different currencies, the balance of payments and the problems of the trade deficits, and policies to improve imbalances. The analysis of foreign exchange markets, exchange rates and their determination as well as models to forecast the exchange rates are covered extensively, together with the efficiency of these markets. International parity conditions and exchange rate expectations provide important relations between countries, useful for traders, arbitragers, and speculators. Foreign currency derivatives and their use to manage (hedge) the exchange rate risk are described with practical applications for business managers.

Furthermore, the management of multinational corporations (MNCs), their cost of capital, and capital structure are described and mathematically examined. A multinational capital budget is analyzed with its rules, criteria, and an empirical example from the point of view of the project. The foreign direct investment and the motives of a MNC to go abroad are evaluated together with the domestic and international portfolio theory. Finally, international trade instruments, finance and insurance are examined as well as the political risk that MNCs face by doing business in foreign countries and how to measure and manage this risk.