Foreign Exchange Rates and International Finance


John N. Kallianiotis
Economics/Finance Department, The Arthur J. Kania School of Management, University of Scranton, Scranton, PA

Series: Business, Technology and Finance
BISAC: BUS027000

This book deals with international finance and the role of the foreign exchange rates in our economies. It is constituted from twelve chapters, from the history of our monetary system to the balance of payments and from the exchange rates to multinational businesses and their management. The internationalization of business, the interdependence and conflicts among nations, the enormous capital mobility, the foreign exchange market that provides the payments and instruments for all these international transactions, the risk that is involved among markets, economies, and businesses all require studies, instruments, insurance policies, management, correct public policies, and empirical work on international financial transactions, cultures, and the different value systems, so a finance or political science (undergraduate or graduate) student, a professional, a trader, or any other individual interested in international business could be able to deal with all these conflicts, challenges, and adversities, which their trend is incremental.

Also, the role of the exchange rate and trade policies in improving the trade account and the social welfare of the country’s citizens are considered and examined in detail. Further, the determination and forecasting of the exchange rate are analyzed by using economic theories, mathematics and statistical models. The foreign exchange exposure (risk) is measured and managed by using hedging techniques. The multinational corporations and their cost of capital is covered extensively. The multinational capital budgeting of our MNCs is taking place and the criteria of evaluating the foreign projects are discussed, too. The foreign direct investments (FDI), which increase business, income, and employment in the host countries, the international portfolio theory and its effect on risk minimization from this global diversification are analyzed. The sources and instruments of financing international trade and multinational corporations are presented with the role of commercial banks, money market, and international transportation. Lastly, the political risk involved in different countries is covered and assessed. Thus, this book can be used by itself as a complete text on international finance or can be employed to supplement a reference book devoted to international finance, multinational business, or international financial economics.
(Imprint: Nova)



Table of Contents



Chapter 1. History of Monetary System

Chapter 2. Balance of Payments and Exchange Rates

Chapter 3. Foreign Exchange Market

Chapter 4. Exchange Rate Determination and Forecasting

Chapter 5. Exchange Rates and International Parity Conditions

Chapter 6. Foreign Currency Derivatives

Chapter 7. Foreign Exchange Exposure and its Management

Chapter 8. Multinational Corporation and International Cost of Capital

Chapter 9. Multinational Capital Budgeting

Chapter 10. Foreign Direct Investment and Portfolio Theory

Chapter 11. International Trade Finance

Chapter 12. Political Risk and its Management




About the Author



“<I>Foreign Exchange Rates and International Finance</I> by John N. Kallianiotis is a relevant and important contribution to the study of the global economy. This timely book provides clear, understandable discussions of the theory, applications, practice, and empirical methodology related to the analysis of pertinent issues and concerns related to foreign exchange, balance of payments, foreign currency derivatives, multinational corporations, cost of capital and capital budgeting on the global scale, foreign exchange exposure, foreign direct investment, financing if international trade, and political risk (a topic that, unfortunately, is virtually ignored in other books on international finance but is given robust attention here). This book should be required reading for upper-level undergraduate students, in any aspect of studying the global economy, as well as graduate students specializing in international business and studies. It is also recommended for practitioners in the global economy, as it would serve as an appropriate and relevant source and guide for them. I highly recommend this book.” <B>- Dr. Richard J. Torz, Associate Professor of Economics, St. Joseph’s College New York, Brooklyn, NY, USA</B>

“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.” <B>- Dr. Christos Pargianas, Associate Professor, University of Scranton, Scranton, PA, USA</B>

“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!” <B>- Dr. Mary L. LoRe, Professor, Wagner College, Staten Island, NY, USA</B>

“<I>Foreign Exchange Rates and International Finance</I> would be a great fit as a textbook in a senior undergraduate or graduate course in international finance or other related fields. As a teaching economist, I am always in a lookout for textbooks with a comprehensive logical structure, and this text is certainly one; it views the international-finance and foreign-exchange order as a cohesive yet complex body and covers the history, modern theory, statistical methods, and established practices in the fields of international finance and economics. It is full of real-life examples that should capture the attention of students.” <B>- Dr. Aram Balagyozyan, Associate Professor of Economics, University of Scranton, Scranton, PA, USA</B>

Dr. Kallianiotis’ latest book entitled <I>Foreign Exchange Rates and International Finance</I> is a meaningful contribution, equally appropriate to Undergraduate and Graduate students. The author has crafted an interesting combination of theories and concepts, supported with statistical analysis. The topics addressed in this book combine Economics, Politics and Finance, which creates a contemporary “Theory to Practice” approach to learning. Given the significance of exchange rates to business finance decision making, I urge academics and professionals to adopt this book.” <B>- Dr. Cathyann D. Tully, Professor of Finance and Director of Undergraduate Business Program, Nicolais School of Business at Wagner College, NY, USA</B>

“This book by Professor Kallianiotis is another high scholarly attainment by him. The book has the same rigor and completeness as his other works. The book can be used by diverse audiences such as professionals, students and teachers. Because it is accessible to such readers as upper seniors and MBA students, the book can be used as a textbook for both undergraduate and graduate students in the field of international finance. Anyone using this book can benefit quite a lot. I will incorporate it in my courses.” <B>- Dr. John Malindretos, Associate Professor of Finance, William Paterson University, Wayne, N.J</B>

Keywords: International Finance, Exchange Rate, Balance of Payments, Multinational Corporations, Foreign Direct Investment

The book can be used as a textbook for senior undergraduate and graduate students; for professional in international business, investment, and trade; for foreign currency traders; for international bankers, international economists, political scientists, and economic historians.

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