Finance, 3^rd Ed.

International Enterprise

The Open University

Publisher: The Open University, 2001

ISBN: 0-7492-9717-4

Synopsis:

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Table of Contents:

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0. Introduction
• Background to the unit
• Aims and objectives
• Overview of the unit
1. Corporate Objectives
• 1.1 Managerial Objectives
• 1.2 Cultural Differences in Objectives
• 1.3 Accounting and Tax Differences
• Accounting Differences
• Tax Differences
• 1.4 Conclusion
2. International Investment
• 2.1 Which Perspective Should Be Used?
• 2.2 Which Discount Rate?
• 2.3 Conclusion
3. International Finance
• 3.1 International Equity
• 3.2 International Debt
• Eurocurrency
• Eurobonds
• 3.3 Optimal Capital Structure
• 3.4 Conclusion
4. Dealing with Risk
• 4.1 Political Risk
• 4.2 Credit Risk: Getting Paid
• Open Account
• Documentary Collection
• Letter of Credit
• Problems Encountered in Letter of Credit Transactions
• Payment in Advance
• 4.3 Exchange Rate and Interest Rate Risk
• 4.4 Conclusion
• A Note on Derivatives