This second edition of International Financial Management by Geert Bekaert and Robert J. Hodrick provides a modern, theoretically rigorous approach to understanding global finance. It seamlessly integrates theoretical frameworks with empirical data analysis, real-world examples, and practical case situations to prepare students and business leaders for the complexities of international financial markets. The book covers core topics such as foreign exchange markets, transaction exchange risk, international parity conditions, exchange rate determination, and international capital markets.

In addition, it addresses advanced subjects like country and political risk, international corporate finance decisions, international capital budgeting, and foreign currency derivatives. The authors emphasize risk management’s role in enhancing firm value, supported by valuation methodologies tailored for global investments. Updated to reflect recent financial crises, emerging markets, and contemporary research, this edition highlights relevant institutional details, global financial crises impacts, and new methods in exchange rate forecasting and risk evaluation.

Designed for MBA and advanced undergraduate courses in international finance, this edition ensures readers develop analytical tools and a modern understanding necessary for effective international financial decision-making in a competitive, globalized world.