This book focuses upon the basic principles which together make a ???????toolkit??????? for analysis of issues in international finance. It also captures the importance and excitement of international financial management and highlights the new approaches in the field. It covers the theoretical foundations of international financial decisions and contains extensive applications of the theory to financial practice with a main objective of developing critical thinking skills regarding the theory and practice of international financial management. Table of Contents I. INTERNATIONAL MACROECONOMIC CONCEPTS. 1. International Capital Flows. 2. International Parity Propositions. II. GOING GLOBAL: UNDERTAKING FOREIGN INVESTMENT PROJECTS.  3. International Capital Budgeting. 4. Financing International Projects. 5. Foreign Investment Strategy. III. MANAGING FOREIGN EXCHANGE RISK. 6. Translation and Transaction Exposure. 7. Economic Exposure. 8. The Risk of Foreign Exchange Exposure. 9. Hedging with Financial Instruments. 10. Risk Management Strategy. IV. MANAGING INTERNATIONAL TAXATION AND POLITICAL RISK. 11. International Taxation. 12. Political Risk.