国际金融实务

Part 1 Global Financial Environment1
Project 1 International Monetary System1
Task 1 Overview of International Monetary System2
1.1History of the International Monetary System2
1.2The Creation of the Euro9
1.3Currency Turmoil and Crises Post-now10
Task 2 Contemporary Currency Regimes11
2.1IMF’s Exchange Rate Regime Classifications11
2.2Fixed Versus Flexible Exchange Rate12
2.3Distinction Between Fixed Exchange Rate and Flexible Exchange Rate14
2.4Emerging Markets and System Choices14
Task 3 European Monetary System16
3.1From the Treaty of Rome to the Werner Report, 1957—1970 16
3.2From the Werner Report to the European Monetary System，1970—1979 17
3.3From the start of EMS to Maastricht, 1979—1991 17
3.4From Maastricht to the Euro and the Euro Area, 1991—2002 17
3.5The Largest-ever Currency Changeover18
Task 4 Exchange Rate Regimes: What Lies Ahead?19
Mini Case20
The Revaluation of the Chinese Yuan20
Key Terms27
Summary29
Exercises31
Project 2 Balance of Payment Accounting34
Task 1 Balance of Payment Accounts34
1.1Definition of the Balance of Payment34
1.2The Importance of BOP36
1.3Fundamentals of Balance of Payment Accounting36
1.4Accounts of the Balance of Payment38
Task 2 Disequilibrium of Balance of Payment47
Task 3 Trade Balance and Exchange Rate49
3.1The Balance of Payment Interaction with Key Macroeconomic Variables49
3.2Trade Balance and Exchange Rate52
3.3Capital Mobility53
Mini Case55
Global Remittances55
Key Terms60
Summary62
Exercises63

Part 2 Foreign Exchange Markets67
Project 3 The Foreign Exchange Market67
Task 1 Function and Structure of the Foreign Exchange market68
1.1Geographical Extent of the Foreign Exchange Market68
1.2History of Foreign Exchange68
1.3Functions of the Foreign Exchange Market69
1.4Market Participants70
1.5Transactions in the Interbank Market72
1.6Size of the Market74
Task 2 Foreign Exchange Rates and Quotations76
2.1Currency Symbols76
2.2Interbank Quotations77
2.3Direct and Indirect Quotes78
2.4Bid and Ask Quotations79
2.5Forward Quotations in Percentage Terms80
2.6Cross Rates81
2.7Intermarket Arbitrage82
2.8Measuring a Change in Spot Exchange Rates84
Mini Case86
The Saga of the Venezuelan Bolivar Fuerte86
Key Terms90
Summary91
Exercises92
Project 4 Futures and Options on Foreign Exchange95
Task 1 Foreign Currency Futures95
1.1Contract Specifications96
1.2Currency Futures Markets97
1.3Using Foreign Currency Futures98
Task 2 Foreign Currency Options100
2.1Currency Options100
2.2Currency Options Markets102
2.3Currency Futures Options103
2.4Basic Option Pricing Relationships at Expiry104
2.5American Option Pricing Relationships107
2.6European Option Pricing Relationships109
Mini Case112
Warren Buffett’s Love-Hate Relationship with Derivatives112
Key Terms117
Summary118
Exercises119

Part 3 Foreign Exchange Exposure122
Project 5 Management of Transaction Exposure122
Task 1 Types of Foreign Exchange Exposure123
1.1Transaction Exposure123
1.2Translation Exposure123
1.3Operating Exposure123
Task 2 Hedge124
2.1Hedge Definition124
2.2Advantages and Disadvantages of Hedging124
Task 3 Ways of Hedging Transaction Exposure126
3.1Forward Market Hedge126
3.2Money Market Hedge129
3.3Options Market Hedge130
3.4Comparison of Alternatives132
Task 4 Should the Firm Hedge?134
Mini Case135
Banbury Impex（India）135
Key Terms141
Summary141
Exercises142
Project 6 Management of Operating Exposure145
Task 1 Operating Exposure：Definition145
1.1Attributes of Operating Exposure146
1.2Operating and Financing Cash Flows146
1.3Expected Versus Unexpected Changes in Cash Flow147
Task 2 Measuring Operating Exposure148
2.1Short Run149
2.2Medium Run：Equilibrium149
2.3Medium Run：Disequilibrium150
2.4Long Run150
Task 3 Management of Operating Exposure150
3.1Strategic Management of Operating Exposure150
3.2Proactive Management of Operating Exposure152
Mini Case156
Toyota’s European Operating Exposure156
Key Terms159
Summary160
Exercises160
Project 7 Management of Translation Exposure163
Task 1 Overview of Translation Exposure164
1.1Subsidiary Characterization165
1.2Functional Currency165
Task 2 Translation Methods166
2.1Current Rate Method166
2.2Temporal Method167
2.3U.S. Translation Procedures168
2.4Distinction Between the Foreign Exchange Exposures169
2.5Measurement of Translation Exposure170
Task 3 Managing Translation Exposure171
3.1Balance Sheet Hedge Defined171
3.2Balance Sheet Hedge Determination172
Mini Case173
LaJolla Engineering Services173
Key Terms178
Summary178
Exercises180

References184