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CONTENTS
PART 1
GLOBAL FINANCIAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . .1
CHAPTER 1
FINANCIAL GOALS AND CORPORATE GOVERNANCE . . . . . . . . . . 3
What Is Different About Global Financial Management? . . . . . . . . . . . . . . .4
The Globalization Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Global Transition I: Trident Moves from the Domestic Phase to the
International Trade Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Global Transition II: The International Trade Phase to
the Multinational Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
What Is the Goal of Management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
REAL WORLD EXAMPLE 1.1
CORPORATE CRIME: THE RECKONING
REAL WORLD EXAMPLE 1.2
WHEN SCANDALS GO GLOBAL
. . . . . . . . . . . . . . . . . . . . . . . . .21
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
REAL WORLD EXAMPLE 1.3
CONRAD BLACK AND MINORITY SHAREHOLDER RIGHTS
. . . . . . . . . . . . .25
MINI-CASE: THE FAILURE OF CORPORATE GOVERNANCE AT ENRON . . . . . . .26
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Questions 31 • Problems 32 • Internet Exercises 34
CHAPTER 2
THE INTERNATIONAL MONETARY SYSTEM
Currency Terminology . . . . . . . . . . . . . . . . . . . .
History of the International Monetary System . . . .
Contemporary Currency Regimes . . . . . . . . . . . .
Emerging Markets and Regime Choices . . . . . . . .
The Birth of a Currency: The Euro . . . . . . . . . . . .
REAL WORLD EXAMPLE 2.1
THE CHINESE YUAN (OR RENMINBI)
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REAL WORLD EXAMPLE 2.2
WILL THE NEW MEMBER STATES OF THE EU AUTOMATICALLY
ADOPT THE EURO? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Exchange Rate Regimes: What Lies Ahead? . . . . . . . . . . . . . .
MINI-CASE: THE CREATION OF EURODOLLARS . . . . . . . . . . . . .
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . .
Questions 60 • Problems 61 • Internet Exercises 62
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Contents
CHAPTER 3
THE BALANCE OF PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . .
Typical Balance of Payments Transactions . . . . . . . . . . . . . . . . . . . . . .
Fundamentals of Balance of Payments Accounting . . . . . . . . . . . . . . . .
The Accounts of the Balance of Payments . . . . . . . . . . . . . . . . . . . . . .
The Capital/Financial Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Balance of Payments in Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Balance of Payments Interaction with Key Macroeconomic Variables
Capital Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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REAL WORLD EXAMPLE 3.1
THE UNITED STATES AS THE WORLD’S LARGEST DEBTOR NATION
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Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
MINI-CASE: TURKEY’S KRIZ (A): DETERIORATING BALANCE OF PAYMENTS
Questions 84 • Problems 86 • Internet Exercises 88
PART 2
FOREIGN EXCHANGE THEORY AND MARKETS . . . . . . . . . .89
CHAPTER 4
INTERNATIONAL PARITY CONDITIONS . . . . . . . . . . . . . . . . . . . . .91
Prices and Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92
REAL WORLD EXAMPLE 4.1
PURCHASING POWER PARITY: BURGERS OR BEANS?
. . . . . . . . . . . . . . .95
REAL WORLD EXAMPLE 4.2
DEVIATIONS FROM PURCHASING POWER PARITY IN THE 20TH CENTURY
. . .98
Interest Rates and Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Forward Rate as an Unbiased Predictor of the Future Spot Rate . . . . . .108
Prices, Interest Rates, and Exchange Rates in Equilibrium 84–85 . . . . . .109
MINI-CASE: THE INTRODUCTION OF THE PORSCHE 911
CARRERA 4S CABRIOLET . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .111
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
Questions 113 • Problems 113 • Internet Exercises 116
CHAPTER 5
FOREIGN EXCHANGE RATE DETERMINATION . . . . . . . . . . . . . .117
The Asset Market Approach to Forecasting . . . . . . . . . . . . . . . . . . . . .119
REAL WORLD EXAMPLE 5.1
URUGUAY INFECTED . . .
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Disequilibrium: Exchange Rates in Emerging Markets
Illustrative Case: The Asian Crisis . . . . . . . . . . . . . .
Illustrative Case: The Russian Crisis of 1998 . . . . . . .
Illustrative Case: The Argentine Crisis of 2002 . . . . .
Forecasting in Practice . . . . . . . . . . . . . . . . . . . . . .
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REAL WORLD EXAMPLE 5.2
FORECASTING THE DOLLAR/POUND EXCHANGE RATE (CABLE)
IN SUMMER 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MINI-CASE: TURKEY’S KRIZ (B): UNCOVERED INTEREST
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ARBITRAGE . . . . . .139
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Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142
Questions 143 • Problems 144 • Internet Exercises 147
CHAPTER 6
THE FOREIGN EXCHANGE MARKET . . . . . . . .
Geographical Extent of the Foreign Exchange Market
Functions of the Foreign Exchange Market . . . . . . . .
Market Participants . . . . . . . . . . . . . . . . . . . . . . . .
REAL WORLD EXAMPLE 6.1
THE FOREIGN EXCHANGE DEALER’S DAY
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REAL WORLD EXAMPLE 6.2
BEWARE OF FOREIGN CURRENCY TRADING FRAUDS
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Transactions in the Interbank Market . . . . . . . . . . . .
Size of the Market . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Exchange Rates and Quotations . . . . . . . . .
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MINI-CASE: THE VENEZUELAN BOLIVAR BLACK MARKET .
Summary of Learning Objectives . . . . . . . . . . . . . . . .
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Questions 169 • Problems 170 • Internet Exercises 172
CHAPTER 7
FOREIGN CURRENCY DERIVATIVES
Foreign Currency Futures . . . . . . . . . . .
Currency Options . . . . . . . . . . . . . . . . .
Foreign Currency Speculation . . . . . . . .
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REAL WORLD EXAMPLE 7.1
ROGUE CURRENCY TRADER AT ALLIED IRISH BANK
. . . . . . . . . . . . . . .181
Option Pricing and Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188
Prudence in Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192
REAL WORLD EXAMPLE 7.2
A SELECT LIST OF DERIVATIVE AND MANAGERIAL DISASTERS
. . . . . . . .193
. . . . . . . . . . . . . . . . . . .193
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197
MINI-CASE: ROGUE TRADER, NICHOLAS LEESON
Questions 198 • Problems 198 • Internet Exercises 202
PART 3
FOREIGN EXCHANGE EXPOSURE . . . . . . . . . . . . . . . . . . . . . .203
CHAPTER 8
TRANSACTION EXPOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205
Types of Foreign Exchange Exposure . . . . . . . . . . . . . . . . . . . . . . . . . .206
Why Hedge? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207
REAL WORLD EXAMPLE 8.1
AMAZON.COM’S QUEST FOR PROFITS: THE ROLE OF CURRENCY
GAINS/LOSSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
..
Measurement of Transaction Exposure . . . . . . . . . . . . . . . . . . . . .
Trident’s Transaction Exposure . . . . . . . . . . . . . . . . . . . . . . . . . .
Management of an Account Payable . . . . . . . . . . . . . . . . . . . . . .
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Risk Management in Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .222
REAL WORLD EXAMPLE 8.2
MANIPULATION OF CURRENCY GAINS AND LOSSES
. . . . . . . . . . . . . . .223
. . . . . . . . . . . . . .225
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226
MINI-CASE: LUFTHANSA’S PURCHASE OF BOEING 737S
Questions 227 • Problems 227
CHAPTER 9
OPERATING EXPOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .235
Attributes of Operating Exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . .236
Illustrating Operating Exposure: Trident . . . . . . . . . . . . . . . . . . . . . . . .238
REAL WORLD EXAMPLE 9.1
VOLVO CAR . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .238
Strategic Management of Operating Exposure . . . . . . . . . . . . . . . . . . .243
REAL WORLD EXAMPLE 9.2
GOODYEAR’S RESPONSE TO THE MEXICAN PESO’S DEVALUATION
Proactive Management of Operating Exposure . . . . . . . . .
Contractual Approaches: Hedging the Unhedgeable . . . . .
MINI-CASE: TOYOTA’S EUROPEAN OPERATING EXPOSURE . .
MINI-CASE: PORSCHE EXPOSED . . . . . . . . . . . . . . . . . . . .
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . .
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Questions 259 • Problems 260 • Internet Exercises 263
CHAPTER 10
TRANSLATION EXPOSURE . . . . . . . . . . . . . . . . . . .
Overview of Translation . . . . . . . . . . . . . . . . . . . . . . . .
Translation Methods . . . . . . . . . . . . . . . . . . . . . . . . . .
Translation Example: Trident Europe . . . . . . . . . . . . . . .
Comparing Translation Exposure with Operating Exposure
Managing Translation Exposure . . . . . . . . . . . . . . . . . . .
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REAL WORLD EXAMPLE 10.1
HEDGING THE EURO AWAY
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .279
. . . . . . . . . . . . . . . . . . . . .281
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283
MINI-CASE: LAJOLLA ENGINEERING SERVICES
Questions 283 • Problems 284 • Internet Exercises 285
PART 4
CHAPTER 11
FINANCING THE GLOBAL FIRM . . . . . . . . . . . . . . . . . . . . . . .287
GLOBAL COST AND AVAILABILITY OF CAPITAL . . . .
Weighted Average Cost of Capital . . . . . . . . . . . . . . . . . . .
The Demand for Foreign Securities: The Role of International
Portfolio Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Link Between Cost and Availability of Capital . . . . . . . .
REAL WORLD EXAMPLE 11.1
MARKET LIQUIDITY . . . . .
. . . . . . . . .289
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Illustrative Case: Novo Industri A/S (Novo) . . . . . . . . . . . . . . . . . . . . . .300
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Globalization of Securities Markets . . . . . . . . . . . . . . . . . . . . . . . . . . .306
REAL WORLD EXAMPLE 11.2
BANG & OLUFSEN AND PHILIPS N.V.
. . . . . . . . . . . . . . . . . . . . . . . . .307
The Cost of Capital for MNEs Compared with Capital for Domestic Firms 308
Solving a Riddle: Is the Weighted Average Cost of Capital
for MNEs Really Higher Than for Their Domestic Counterparts? . . . . . . .309
MINI-CASE: NESTLÉ: AN APPLICATION OF THE INTERNATIONAL CAPM . . . .311
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .312
Questions 313 • Problems 314 • Internet Exercises 317
CHAPTER 12
SOURCING EQUITY GLOBALLY . . . . . . . . . . . . . . . .
Designing a Strategy to Source Equity Globally . . . . . . . . .
Foreign Equity Listing and Issuance . . . . . . . . . . . . . . . . .
Effect of Cross-Listing and Equity Issuance on Share Price .
Barriers to Cross-Listing and Selling Equity Abroad . . . . . .
Alternative Instruments to Source Equity in Global Markets
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REAL WORLD EXAMPLE 12.1
PRIVATE EQUITY IN ARGENTINA AND THE ARGENTINE CRISIS
. . . . . . . .332
MINI-CASE: DEUTSCHE BANK’S GLOBAL REGISTERED SHARES . . . . . . . . . .332
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .333
Questions 334 • Problems 335 • Internet Exercises 337
CHAPTER 13
FINANCIAL STRUCTURE AND INTERNATIONAL DEBT
Optimal Financial Structure . . . . . . . . . . . . . . . . . . . . . . . .
Optimal Financial Structure and the MNE . . . . . . . . . . . . . . .
Financial Structure of Foreign Subsidiaries . . . . . . . . . . . . . .
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REAL WORLD EXAMPLE 13.1
EQUITY CARVE-OUTS . . . .
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International Debt Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .348
REAL WORLD EXAMPLE 13.2
PRICING AND STRUCTURE OF A SYNDICATED EUROCREDIT
. . . . . . . . . .350
Project Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .354
REAL WORLD EXAMPLE 13.3
ISLAMIC FINANCE . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .356
MINI-CASE: TIRSTRUP BIOMECHANICS (DENMARK): RAISING
DOLLAR DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .357
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .359
Questions 360 • Problems 361 • Internet Exercises 363
CHAPTER 14
INTEREST RATE AND CURRENCY SWAPS
Defining Interest Rate Risk . . . . . . . . . . . . . . .
Management of Interest Rate Risk . . . . . . . . . .
Trident Corporation: Swapping to Fixed Rates .
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REAL WORLD EXAMPLE 14.1
CAVEAT EMPTOR, PROCTER & GAMBLE’S SWAPS
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Currency Swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .377
Trident Corporation: Swapping Floating Dollars into
Fixed Rate Swiss Francs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .378
REAL WORLD EXAMPLE 14.2
ECUADORIAN DEBT-FOR-DEVELOPMENT
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Counterparty Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Illustrative Case: A Three-Way Back-to-Back Cross-Currency Swap . . .
MINI-CASE: MCDONALD’S CORPORATION’S BRITISH POUND EXPOSURE .
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.379
.381
.381
.383
.384
Questions 384 • Problems 385 • Internet Exercises 387
PART 5
FOREIGN INVESTMENT DECISIONS . . . . . . . . . . . . . . . . . . .389
CHAPTER 15
INTERNATIONAL PORTFOLIO THEORY
AND DIVERSIFICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .391
International Diversification and Risk . . . . . . . . . . . . . . . . . . . . . . . . . .392
REAL WORLD EXAMPLE 15.1
SHOULD FUND MANAGERS HEDGE CURRENCY RISK?
. . . . . . . . . . . . . .395
Internationalizing the Domestic Portfolio . . . . . . . . . . . . . . . . . . . . . . .395
National Markets and Asset Performance . . . . . . . . . . . . . . . . . . . . . . .400
REAL WORLD EXAMPLE 15.2
EQUITY MARKET CRISES IN THE TWENTIETH CENTURY
. . . . . . . . . . . . .401
. . . . . . . . . . . . . . . . . . . . .406
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .407
MINI-CASE: STRATEGIC CURRENCY HEDGING
Questions 408 • Problems 409 • Internet Exercises 411
CHAPTER 16
FOREIGN DIRECT INVESTMENT THEORY AND STRATEGY . . . .412
The Theory of Comparative Advantage . . . . . . . . . . . . . . . . . . . . . . . . .413
Market Imperfections: A Rationale for the Existence
of the Multinational Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .418
REAL WORLD EXAMPLE 16.1
EXAMPLES OF GLOBAL OUTSOURCING OF COMPARATIVE
ADVANTAGE IN INTELLECTUAL SKILLS . . . . . . . . . . . . .
Sustaining and Transferring Competitive Advantage . .
The OLI Paradigm and Internalization . . . . . . . . . . .
Deciding Where to Invest . . . . . . . . . . . . . . . . . . . .
How to Invest Abroad: Modes of Foreign Involvement
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REAL WORLD EXAMPLE 16.2
KEEPING IT IN THE FAMILY: AMERICAN EXPORTS TO AND IMPORTS
FROM AMERICAN-OWNED AFFILIATES ABROAD (BILLIONS OF US$)
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.419
.420
.423
.424
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. . . .427
MINI-CASE: BENECOL’S GLOBAL LICENSING AGREEMENT . . . . . . . . . . . . .430
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .431
Questions 432 • Problems 433 • Internet Exercises 434
FM_p.i-xx 1/14/05 3:55 PM Page xix
xix
Contents
CHAPTER 17
POLITICAL RISK ASSESSMENT AND MANAGEMENT
Defining Political Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessing Political Risk . . . . . . . . . . . . . . . . . . . . . . . . . . .
Firm-Specific Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Country-Specific Risks: Transfer Risk . . . . . . . . . . . . . . . . .
Country-Specific Risks: Cultural and Institutional Risks . . . .
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.435
.436
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.443
.446
REAL WORLD EXAMPLE 17.1
ENRON INTERNATIONAL IN INDIA
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Global-Specific Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .451
REAL WORLD EXAMPLE 17.2
INTERNATIONAL SUPPLY CHAIN SECURITY: TIME IS MONEY
. . . . . . . . . .454
REAL WORLD EXAMPLE 17.3
CORPORATE SUSTAINABILITY
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .456
. . . . . . . . . . . . . . .456
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .460
MINI-CASE: GLOBALIZATION AND STARBUCKS COFFEE
Questions 460 • Internet Exercises 462
CHAPTER 18
MULTINATIONAL CAPITAL BUDGETING .
Complexities of Budgeting for a Foreign Project
Project Versus Parent Valuation . . . . . . . . . . .
Illustrative Case: Cemex Enters Indonesia . . . .
Real Option Analysis . . . . . . . . . . . . . . . . . . .
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.463
.464
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.480
MINI-CASE: TRIDENT’S CHINESE MARKET ENTRY —
AN APPLICATION OF REAL OPTION ANALYSIS . . . .
. . . . . . . . . . . . . . . . .481
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .483
Questions 484 • Problems 484 • Internet Exercises 488
PART 6
CHAPTER 19
MANAGING MULTINATIONAL OPERATIONS . . . . . . . . . . . .489
INTERNATIONAL TRADE FINANCE . . . . . . . . . .
The Trade Relationship . . . . . . . . . . . . . . . . . . . . . . .
The Trade Dilemma . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits of the System . . . . . . . . . . . . . . . . . . . . . . .
Key Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Letter of Credit (L/C) . . . . . . . . . . . . . . . . . . . . . . . .
Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bill of Lading (B/L) . . . . . . . . . . . . . . . . . . . . . . . . . .
Example: Documentation in a Typical Trade Transaction
REAL WORLD EXAMPLE 19.1
THE LETTER OF CREDIT GOES ONLINE
......
Government Programs to Help Finance Exports
Trade Financing Alternatives . . . . . . . . . . . . . .
Forfaiting: Medium and Long-Term Financing . .
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.491
.492
.494
.495
.497
.497
.500
.501
.502
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.504
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.506
.509
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Contents
MINI-CASE: CROSSWELL INTERNATIONAL’S PRECIOUS
ULTRA-THIN DIAPERS . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .511
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .514
Questions 515 • Problems 516 • Internet Exercises 518
CHAPTER 20
MULTINATIONAL TAX MANAGEMENT . . . . . . . . . . . . . . . . . . . . .519
Tax Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .520
Transfer Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .527
REAL WORLD EXAMPLE 20.1
OVER- AND UNDER-INVOICING
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Methods of Determining Transfer Prices . . . . . . . . . . . . . . . . . . . .
U.S. Taxation of Foreign Source Income . . . . . . . . . . . . . . . . . . . .
Tax-Haven Subsidiaries and International Offshore Financial Centers
. . . .528
. . . .530
. . . .532
. . .539
REAL WORLD EXAMPLE 20.2
THE ACTIVITIES OF OFFSHORE FINANCIAL CENTERS
. . . . . . . . . . . . . . .541
MINI-CASE: STANLEY WORKS AND CORPORATE INVERSION . . . . . . . . . . .541
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .545
Questions 546 • Problems 548 • Internet Exercises 551
CHAPTER 21
WORKING CAPITAL MANAGEMENT . . . .
Trident Brazil’s Operating Cycle . . . . . . . . . . .
Trident’s Repositioning Decisions . . . . . . . . . . .
Constraints on Repositioning Funds . . . . . . . . .
Conduits for Moving Funds by Unbundling Them
International Dividend Remittances . . . . . . . . .
Net Working Capital . . . . . . . . . . . . . . . . . . . .
International Cash Management . . . . . . . . . . .
Financing Working Capital . . . . . . . . . . . . . . . .
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MINI-CASE: HONEYWELL AND PAKISTAN INTERNATIONAL AIRWAYS .
Summary of Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . .
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.552
.553
.555
.556
.557
.558
.559
.566
.572
.575
.577
Questions 578 • Problems 580 • Internet Exercises 583
GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .G-1
INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I-1
WEB CHAPTER
CROSS-BORDER MERGERS, ACQUISITIONS, AND VALUATION
on the book’s Web site at www.aw-bc.com/moffett