Alan C. Shapiro’s book, Multinational Financial Management 10th Edition, provides a comprehensive view of how multinational corporations conduct business amidst the complex challenges of a global environment. This 728-page edition gives a substantial overview of the fundamental areas of multinational corporate management. Among these areas are financial structure, cost of capital, capital budgeting, foreign investment, and the management of working capital.

The first part of Multinational Financial Management 10th Edition looks at one of the most basic and often urgent concerns that confront global corporations: the exchange rate. This 200-plus section of the book is extremely useful for those who want to truly understand the workings of currencies as political and economic borders are crossed. There is a good discussion on the International Monetary System and how exchange rates are determined; there is also an informative description on forecasting trends in international finance and currency, and how the balance of payments works. Possibly the most interesting part of this book is its brief exposition on country risk analysis – essential information indeed for multinational corporate management.

The two succeeding sections of the book (part II and III) provide greater detail about the dynamics of foreign exchange, how currency futures as well as options markets operate, and how interest rates are derived within the context of international finance. There is also an extensive 45-page discussion on assessing and managing the risks that come with multinational transactions. This portion of the book is highly useful as a tool for scrutinising current news articles on new markets and business opportunities across the globe.

This edition provides a relatively short discussion on how multinationals obtain capital for various ventures through chapters12, 13, and 14. Topics discussed include international financing, national capital markets, and the cost of capital for foreign investments. For first time readers, Chapter 13 on Euromarkets is particularly interesting.

Part V of Shapiro’s book takes a closer look at how to go about analyzing foreign investment. There is a discussion on what international portfolio investments are, how corporations place foreign direct investments, and how multinationals apportion capital to create strategically sound international investment portfolios.

The last part of the book consists of 3 chapters which discuss how multinationals manage assets and provide for short-term financing needs as well as the financing of foreign trade – all within the context of the global financial system. In many ways, this part of the book consolidates some of the theoretical views expressed in preceding parts – particularly parts III and IV. Nevertheless, chapters 18 to 20 manage to provide new information on how multinational companies deal with the reality of managing company assets within the present volatile environment.

As a whole, Multinational Financial Management 10th Edition is an excellent resource for managers who want a comprehensive framework with which to analyse crucial decisions pertaining to multinational investments. This edition, like the ones before it, looks at the standard components of corporate finance. However, it also integrates present-day developments such as the European debt crisis and the growing economies of India and China. Furthermore, it takes into account the relative instability of the international monetary system and other global crises which impact the management of all multinational corporations. Multinational Financial Management 10th Edition is highly informative, and it is well worth the time invested in reading it.