Part Five develops a valuation framework for cross-border investments that uniquely incorporates the different variables such as foreign exchange risk, country risk, asymmetric tax treatment, and different inflation rates. As a preliminary, in Chapter 19 we outline the organizational modalities within firms entering foreign markets and when cross-border valuation issues arise. Chapter 20 contrasts metrics such as net present value of asset-based cash flows or equity-based cash flows versus adjusted present value and real options metrics, and reviews the necessary adjustments to be made to the cost of capital used as a discount rate in international valuation. The framework is applied to cross-border mergers and acquisitions in Chapter 21 and large-scale infrastructural project finance in Chapter 22. Taking the perspective of asset managers manning the desks of mutual funds, pension funds, hedge funds, or sovereign wealth funds, global investing in stocks and bonds is addressed in Chapter 23, which gauges the limit of geographical diversification in the context of ever increasingly integrated capital markets.