Gray / Richard International Finance in the New World Order

1. Auflage 2014
ISBN: 978-1-4832-9528-2
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 403 Seiten, Web PDF

Reihe: Series in International Business and Economics

Some of the most important developments of the last quarter century relate to the internationalization of financial issues: the advent of free trade areas; the efforts of the European Union in establishing a single currency; burdens of international indebtedness; and the economic growth and development of nations.International financial systems are increasingly fragile and vulnerable in the face of possible international financial shock. Exchange rate issues and other changes in financial conditions have profound consequences not only for multinational corporations which have to devise new ways of managing their global operations, but also for firms and industries at the national level.The papers in this book confront these and other problems in international finance that have arisen in recent years, seeking to identify causal linkages at the global, national and company levels.

Autoren/Hrsg.

Gray, H. P.

Richard, S. C.

Inhaltsverzeichnis

1;Front Cover;1
2;International Finance in the New World Order;4
3;Copyright Page;5
4;Table of Contents;6
5;CONTRIBUTORS ;10
6;IN MEMORY;16
7;PREFACE;18
8;Part I: The scope of the volume;20
8.1;Chapter 1. Introduction;22
8.1.1;Notes;26
8.2;Chapter 2. The Scope of International Finance;28
8.2.1;General Considerations;29
8.2.2;Specific Topics;34
8.2.3;Exchange Rates;34
8.2.4;International Financial Intermediaries and Interpenetration18;36
8.2.5;International Financial Interpenetration of Security Portfolios;37
8.2.6;The Profitability and Profit Repatriation of MNC Affiliates;38
8.2.7;International Financial Stability;39
8.2.8;International Financial Interdependence;40
8.2.9;International Portfolio Theory;40
8.2.10;The Cost of Capital26;40
8.2.11;Financial Activities and Strategies of MNCs;41
8.2.12;National Financial Markets;42
8.2.13;Conclusion;42
8.2.14;Notes;43
9;Part II: The Maastricht Treaty;46
9.1;Chapter 3. The Franc That Wouldn't Die: A Historical Interpretation of the Resilience of the French Franc;48
9.1.1;Introduction;48
9.1.2;Policies of Sound Coinage;52
9.1.3;Reverse Alchemy: The Tragedy of Paper;53
9.1.4;The Birth of the Franc;54
9.1.5;Devaluation: Emasculation or Catharsis;56
9.1.6;Conclusion;58
9.2;Chapter 4. The Dilemmas of European Monetary
Integration;60
9.2.1;Introduction;60
9.2.2;The Maastricht Treaty;60
9.2.3;EMU: A Political Challenge;61
9.2.4;Ratification of the Maastricht Treaty;63
9.2.5;A Multi-speed Community;68
9.2.6;Widening Versus Deepening;68
9.2.7;The European Central Bank;70
9.2.8;Conclusions;71
9.2.9;Notes;72
9.3;Chapter 5. Ramification of the Maastricht Treaty
on European Monetary Union (EMU): An Overview;74
9.3.1;Introduction;74
9.3.2;Purpose of this Study;75
9.3.3;Literature Review;76
9.3.4;Purpose and History of EMU;76
9.3.5;An Overview of The Maastricht Treaty;77
9.3.6;Economic and Monetary Impacts of EMU;79
9.3.7;Financial Impacts of EMU;80
9.3.8;Taxational Impacts of EMU;81
9.3.9;Obstacles and Barriers;82
9.3.10;An Integrated Banking System;84
9.3.11;Conclusion and Points of Departure;86
10;Part III: Balance of payments;88
10.1;Chapter 6. Take-off into Development and Emerging Capital Markets: Stages of Financial Development and Equity Financing;90
10.1.1;Take-off into Development Financial Markets;90
10.1.2;Stages of Financial Development;91
10.1.3;Financial Deepening and Development;92
10.1.4;Financing Stages of a Nation and its Corporations;95
10.1.5;Capital Markets Development Stages;97
10.1.6;Banking vs Capital Market Financing;100
10.1.7;Nation Building and Financial Development;102
10.1.8;Financial Integration and Financial Development;103
10.1.9;Acknowledgement;105
10.1.10;Notes;105
10.2;Chapter 7. External Capital Flows and Constraints on U.S. Monetary Policy;108
10.2.1;Introduction;108
10.2.2;Currency Substitution and its Effect on Monetary Policy;110
10.2.3;Estimating the Effects of Currency Substitution;112
10.2.4;Model Implementation;114
10.2.5;Notes;120
10.3;Chapter 8. Research and Development Expenditures, Export Performance, and United States' International Competitiveness;122
10.3.1;Introduction;122
10.3.2;Policy Issues on U.S. Competitiveness and External Balance;123
10.3.3;Data Construction, Description, and Specification;125
10.3.4;The Heuristic Model;127
10.3.5;Econometric Empirical Findings;130
10.3.6;Summary and Conclusions;133
10.3.7;Appendix;134
10.3.8;Notes;136
10.4;Chapter 9. Black Market Exchange Rate Expectations and the Demand for Money. The Case of SAARC Countries;138
10.4.1;Introduction;138
10.4.2;Model Specification and Data;141
10.4.3;Empirical Results;143
10.4.4;Conclusions;149
10.4.5;Notes;149
10.5;Chapter 10. A Monetary Model of the Mexican Balance of Payments;150
10.5.1;Introduction;150
10.5.2;Fundamentals of the Monetary Approach to Balance of Payments;150
10.5.3;The Model;152
10.5.4;Estimation and Empirical Results;154
10.5.5;The Mexican Experience;157
10.5.6;Conclusions;158
11;Part IV Firm and industry studies;160
11.1;Chapter 11. Explaining Leveraged Buy-outs and Acquisitions;162
11.1.1;Introduction;162
11.1.2;The Model;163
11.1.3;Data and Definitions;166
11.1.4;Econometric Evidence;168
11.1.5;Conclusions;173
11.1.6;Acknowledgement;173
11.1.7;Appendix;174
11.1.8;The .-index;174
11.1.9;The Concentration Ratio;174
11.1.10;The Primary Product Specialization Ratio;174
11.1.11;The Coverage Ratio;175
11.1.12;Notes;175
11.2;Chapter 12. The Effect of Dollar Appreciation on
U.S. Manufacturing Corporate Profits: An Empirical Investigation;176
11.2.1;Introduction;176
11.2.2;Hypothesis;177
11.2.3;Literature Background;178
11.2.4;Methodology;179
11.2.5;Statistical Models;180
11.2.6;The Effects of Exchange Rate Fluctuations on Manufacturing Profits;181
11.2.7;OLS Estimates;181
11.2.8;SURE Estimates;182
11.2.9;Pane/ Analysis;183
11.2.10;The Effects of Exchange Rate Fluctuations on U.S. Multinational Corporations, Profits;184
11.2.11;Background;184
11.2.12;Panel Analysis;185
11.2.13;Regressions to the Level of Operating Profits;186
11.2.14;Regressions to Rate of Return;186
11.2.15;Testing the Influence of the State of Domestic Competition;188
11.2.16;Concluding Remarks;189
11.2.17;Appendix: Description of the Variables;190
11.2.18;Notes;191
11.3;Chapter 13. Transnational Corporations and
Mexican Autos: Impact of Sectoral and Macroeconomic Policies;194
11.3.1;Introduction;194
11.3.2;The Mexican Automotive Industry: 1962–1982;195
11.3.3;The 'Lost Decade' of the 1980s;199
11.3.4;Performance of the Auto Industry Since 1981;204
11.3.5;Effect of Mexican Policies on TNC Performance;211
11.3.6;From the Brady Plan to NAFTA;212
11.3.7;Final Comments;214
11.3.8;Notes;214
12;Part V: International financial institutions;218
12.1;Chapter 14. Volatility Assessment for Stocks or Portfolios: A Risk Triangle Approach;220
12.1.1;Introduction;220
12.1.2;Data;222
12.1.3;Conventional and Non-parametric Risk Measures;226
12.1.4;Risk Triangles—A New Approach to Risk;231
12.1.5;Conclusion;237
12.1.6;Acknowledgement;237
12.1.7;Notes;237
12.2;Chapter 15. International Stock Returns and Macroeconomic Price Variables;240
12.2.1;Introduction;240
12.2.2;Exposure and Neutrality;241
12.2.3;Methodology and Empirical Results;243
12.2.4;Conclusions;254
12.2.5;Acknowledgement;254
12.3;Chapter 16. Debt Crisis and Economic Recovery
and Performance of the Emerging Latin American Equity Markets;256
12.3.1;Introduction;256
12.3.2;Crisis and Economic Recovery in Latin America;257
12.3.3;Trends and Potential of Latin American Stock Markets;261
12.3.4;Conclusion;277
12.3.5;Notes;278
12.4;Chapter 17. The Trinidad and Tobago Stock
Exchange: An Analysis of
Efficiency, Risk, and International Diversification;280
12.4.1;Introduction;280
12.4.2;Methodology and Data;282
12.4.3;Results;283
12.4.4;Conclusion;286
12.5;Chapter 18. Foreign Bank Operations in the United States: Cause for Concern?;288
12.5.1;Introduction;288
12.5.2;The Market Share of Foreign Banks in the United States;289
12.5.3;Asset Share;289
12.5.4;Share of Business Lending;290
12.5.5;Petformance of Foreign Banks in the United States;296
12.5.6;Conclusions;306
12.5.7;Acknowledgements;308
12.5.8;Notes;308
12.6;Chapter 19. An Analysis of Mergers Between
Credit Associations and Credit Cooperatives in Japan;312
12.6.1;Introduction;312
12.6.2;Data, Hypotheses and Approach;313
12.6.3;The Performance of Mergers;314
12.6.4;Comparative Analysis by Relative Financial Ratios;324
12.6.5;Conclusions;329
12.6.6;Acknowledgements;329
12.6.7;Appendix II: Financial Ratios Analyzed;331
12.6.8;Notes;331
13;Part VI: International debt problems;332
13.1;Chapter 20. Debt Burden and Financial Capital
Flows to the Less-developed
Countries and the Former Centrally Planned Economies;334
13.1.1;Introduction;334
13.1.2;Financial Capital Flows to Net Debtor Countries;335
13.1.3;External Debt and Debt Service Burden of the Net Borrowing Countries;338
13.1.4;Do Non-tariff Barriers by the Developed Countries Nullify their Official Development Assistance?;342
13.1.5;Conclusions;345
13.2;Chapter 21. External Debt in China;348
13.2.1;Introduction;348
13.2.2;Research Methodology;349
13.2.3;The Definitions;349
13.2.4;The Data;349
13.2.5;The System of Debt Indicators;350
13.2.6;Analysis of the Results;351
13.2.7;Debt Size;351
13.2.8;Debt Service Capacity;353
13.2.9;Debt Composition;357
13.2.10;Conclusions;361
13.3;Chapter 22. Less-developed Country Debt: A Case for Forgiveness;364
13.3.1;Introduction;364
13.3.2;Debt Crisis of the 1980s;367
13.3.3;Debt Structure Analysis;367
13.3.4;Why Forgive the Debt Now?;369
13.3.5;Historical Perspective;369
13.3.6;Resource Transfer Analysis;369
13.3.7;Cost of Forgiveness;372
13.3.8;Declining Debt Prices in the Secondary Marl