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International Financial Transactions and Exchange Rates - 9781137358158

Un libro in lingua di Kallianiotis John N. edito da Palgrave Macmillan, 2013

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International transactions among nations and multinational corporations are important and growing due to the openness of the economies all over the world. In this follow-up title to Exchange Rates and International Financial Economics, Kallianiotis examines the role of the exchange rate and trade policy in improving the trade account. He discusses the international parity conditions extensively, together with the most popular theory in international finance, the interest rate parity (IRP) theory. The sources and instruments of financing international trade and multinational corporations are presented with the role of commercial banks, money market, and international transportation. The international portfolio theory and its effect on risk minimization from this global diversification are also covered. The foreign direct investments of multinational corporations, which increase business, income, and employment in the host countries, are provided together with the political risk in the different countries. Further, the role of the U.S. financial system ('free-market') and the dollar as an international currency reserve and their contribution to financial transactions (trade and investment), to the entire business world, and to the global financial crisis ('systemic risk') during the last years, is covered, too.

This book describes these theories and gives practical solutions for multinational business, individuals, and nations. The increasing internationalization of business, openness of economies, integration of nations, change in the exchange rate system, and lastly, the deregulation of the financial market and institutions around the world have made the study of international finance necessary for all business students and professionals.

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