Part ⅠOverview on International Investment
Chapter 1Overview on International Investment
The requirement of Learning
1The conception and the types
1.1The conception
1.2The types
2International Investments and Balance of Payments
2.1Basic structure
2.2The reconciliation of BOP and IIP
3The difference of FDI and IPI
4Development of International Investment
4.1Before 1914
4.2During the period of the world wars
4.3From the end of world war Ⅱ to 1979
4.4From 1980s to 2000s
4.5From 2000s to 2010
4.6The Latest development of International investment
Summary
Exercises
Part ⅡInternational Portfolio Investment (IPI)
Chapter 2Diversification and Portfolio Theory
The requirement of Learning
1Why a Diversified Portfolio Investment is Important
1.1Avoiding Disaster
1.2Portfolio: Reduce Risk
2The Modern Portfolio Theory
2.1The Emergence of Modern Portfolio Theory
2.2The Theory of Security Portfolio
Summary
Exercises
Chapter 3CAPM and International CAPM
The requirement of Learning
1Capital Assets Pricing Model (CAPM)
1.1Assumptions
1.2The capital market line
1.3The market portfolio
1.4The efficient set
1.5The security market line
1.6Market and NonMarket Risk
2International CAPM
2.1Real exchange rate
2.2Foreign Currency Risk Premiums
2.3Separation Theorem and Riskpricing relation
Summary
Exercises
Chapter ４The Practice for International Diversification
The requirement of Learning
1Traditional Case International Diversification
1.1Risk Reduction through Attractive Correlations
1.2Portfolio Return Performance
1.3ForwardLooking Optimization
1.4Currency Risk Not a Barrier to International Investment
2The Case Against International Diversification
2.1Increase in Correlations
2.2Past Performance Is a Good Indicator of Future Performance
2.3Barriers to International Investments
3The Case for Emerging Markets
3.1The Basic Case
3.2Volatility, Correlations, and Currency Risk
3.3Portfolio Return Performance
3.4Investability of Emerging Markets
3.5Segmentation versus Integration Issue
Summary
Exercises
Chapter 5International Equity Investment
The requirement of Learning
1Market Differences: A Historical Perspective
1.1Historical Differences in Market Organization
1.2Historical Differences in Trading Procedure
2Global Market Statistics
2.1Market Size
2.2Liquidity
2.3Concentration
3Market Practical Aspects
3.1Tax Aspects
3.2Stock Market Indexes
4Investing in foreign Equity Securities
4.1Investing the Shares of foreign Listing
4.2Depository Receipt
4.3Closedend Country Funds
4.4An ExchangeTraded Fund (ETF)
5Analysis Methods
5.1The information Problem
5.2A vision of the world
5.3Differences in National Accounting Standards
5.4The effects of Accounting Principles on Earnings and Stock Prices
6Global Analyses
6.1Country Analysis
6.2Industry Analysis
7Equity Analyses
7.1Global financial ratio analysis
7.2Valuation Models
7.3The effects of inflation on Stock prices
Summary
Exercises
Chapter 6International Bond Investment
The requirement of Learning
1The Introduction of Global Bond Market
1.1The various Segments
1.2World market size
1.3Bond Indexes
1.4The Eurobond Market
1.5Emerging Markets and Brady Bonds
2Major Differences among Bond Markets
2.1Types of Instruments
2.2Quotations, Day Count, and Frequency of Coupons
3A Refresher on Bond Valuation
3.1ZeroCoupon Bonds
3.2Bond with Coupons
3.3Duration and Interest Rate Sensitivity
3.4Credit Spreads
3.5The return and risk on foreign bond investment
4Floating Rate Notes and Structured Notes
4.1FloatingRate Notes (FRNs)
4.2Bull FRN
4.3Bear FRN
4.4DualCurrency Bonds
4.5CurrencyOption Bonds
Summary
Exercises
Part ⅢInternational Direct Investment
Chapter 7FDI：Conception and Theories
The requirement of Learning
1The Definition and Measurement
1.1The “lasting interest” vs. Control
1.2Classification of FDI
2Theories
2.1Theory of Monopolistic Competition
2.2Internalization Theory
2.3Theory of International Product Cycle
2.4The Eclectic Paradigm
3The Decision Sequence of FDI
4Foreign Direct Investment Originating in Developing Countries
Summary
Exercises
Chapter 8The Risks of Foreign Exchange Rate
The requirement of Learning
1Transaction Exposure
1.1Purchasing or Selling on Open Account
1.2Borrowing and Lending
1.3Other Causes of Transaction Exposure
1.4Contractual Hedges
1.5Management of an Account Payable
2Operating Exposure
2.1Attributes of Operating Exposure
2.2Illustrating Operating Exposure: Trident
2.3Strategic Management of Operating Exposure
2.4Proactive Management of Operating Exposure
3Translation Exposure
3.1Overview of Translation
3.2Translation Methods
3.3Translation Example: Trident Europe
3.4Comparing Translation Exposure with Operating Exposure
3.5Managing Translation Exposure
Summary
Exercises
Chapter 9FDI: Political Risks
The requirement of Learning
1Defining Political Risk
2Assessing Political Risk
2.1Predicting Firmspecific Risk (Micro Risk)
2.2Predicting CountrySpecific Risk (Macro Risk)
2.3Predicting GlobalSpecific Risk
3FirmSpecific Risks
3.1Governance Risks
4CountrySpecific Risks
4.1Transfer Risk: Blocked Funds
4.2CountrySpecific Risks: Cultural and Institutional Risks
5GlobalSpecific Risks
5.1Terrorism and War
5.2Crisis Planning
5.3CrossBorder Supply Chain Integration
5.4Antiglobalization Movement
5.5Environmental Concerns
5.6Poverty
5.7Cyber Attacks
5.8Corporate Social Responsibility
Summary
Exercises
Part ⅣInternational Investment in China
Chapter 10International Direct Investment in China
The requirement of Learning
1FDI in China
1.1Why study FDI in China?
1.2FDI Inflows into China between 1979 and 2009
1.3Chinas FDI Inflows in Global Perspective
1.4The Regional Distribution of FDI within China
1.5Who are the Major Investors in China?
1.6Sectoral Distribution of FDI in China
1.7The Contribution of FDI to Chinas Economy
1.8The Evolution of Chinas Opening Policies to FDI
2OFDI in China
2.1Introduction
2.2Phases of Chinese OFDI
2.3The latest development of Chinese OFDI
2.4International Investment Strategy of Chinas OFDI
Summary
Exercises
Chapter 11International Portfolio Investment in China
Learning requirements
1Overview
2Foreign investors invest in Chinese stocks
2.1Investing in overseaslisted stocks of Chinese companies
2.2QFII and RQFII
2.3Interconnection mechanism
2.4Foreign investor invest in Chinas Bond
3Chinas Indirect Investment abroad
3.1QDII
3.2Sovereign wealth funds
Summary
Exercises
REFERENCES