Laurent L. Jacque - International Corporate Finance: Value Creation with Currency Derivatives in Global Capital Markets + Website

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Copyright 2014 by Laurent Jacque. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Jacque, Laurent L.
International corporate finance + website : foreign exchange, currency derivatives, and risk management in the global capital markets / Laurent L. Jacque.
pages cm.(Wiley finance series)
Includes index.
ISBN 978-1-118-78186-9 (paperback)ISBN 978-1-118-78369-6 (ePDF)
ISBN 978-1-118-78362-7 (ePub) 1. International business enterprisesFinance.
2. Risk management. 3. Foreign exchange. 4. Foreign exchange futures. I. Title.
II. Title: International corporate finance plus website. III. Title: International corporate finance and website.
HG4027.5.J3193 2014
332'.042dc23

2013042741

For Bebe, Nathalie, and Oliviermy pride and my joy

As globalization is redefining the field of corporate finance, international finance is increasingly permeating most financial transactions, which in yesteryears were deemed to be strictly domestic transactions. In fact, it is very difficult to understand what is happening in capital markets without a firm grasp of currency markets, the investment strategies of sovereign wealth funds, carry trades, foreign exchange derivative products, and so forth. Similarly, project finance cannot be understood without a firm grasp of valuation concepts in a cross-border context. Indeed, international finance is now part and parcel of the basic literacy of any financial executive whether she or he is an investment banker, a treasurer, a CFO, a portfolio manager, or a loan officer. There is no hiding from international finance.

And yet the field of international finance textbooks is not terribly crowded, with the three or four leading titles showing signs of multiple editions fatigue. What is needed is a book offering a fresh perspective on international finance that transcends the boundaries of ethnocentric thinking and an overly U.S.-centric approacha book that brings the fascinating and rapidly unfolding story of emerging capital markets and their daring multinationals in the mainstream of international finance. International Corporate Finance is purporting to be such a book.

There are several features that will set International Corporate Finance apart from rival books:

1. Most chapters are developed around a real-life but simplified mini-case to anchor theoretical concepts to managerial situations. This allows the reader to grasp the practical relevance of the topic addressed before being introduced to the necessary theoretical frameworks.
2. Each chapter provides real-life illustrations. The purpose is to make international finance as alive as possible. Typically this is done as boxed inserts called International Corporate Finance in Practice, written in a lighter style meant to wake up the reader by being reasonably provocative.
3. Most chapters provide simple decision rules and pragmatic how-to answers to key managerial issuesat least one in each chapter. Many texts often provide a narrative solution to managerial questions raised but fail to provide simple yet rigorous closure to the reader.
4. Several chapters, such as Islamic Banking and Finance, Asian Finance and Banking, Cross-Border Mergers and Acquisitions, and Project Finance, are completely new material that no other textbook currently covers. This book systematically incorporates the story of the BRIC countries (Brazil, Russia, India, and China) and their daring multinationals, thereby balancing out an overly U.S.-centric and Wall Streetanchored approach to international corporate finance.
5. Most chapters include separate case studies (found on the website) that are real-life decision-making situations. Although much shorter than typical Harvard Business School case studies (the industry standard), they capture multifaceted financial management in an engaging manner and typically result in 30 to 45 minutes of lively class discussion.
6. When appropriate, historical perspective and landmark transactions are presented to put concepts in context. In-depth coverage of the subprime crisis (2008) and the euro crisis (2010) is developed in the context of ill-functioning financial markets.
7. While primarily focused on international corporate finance, the book is structured in such a way that it could also be used for a course on global capital markets, as Parts One, Two, and Three provide comprehensive coverage of capital markets.