International Finance For Dummies^®

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Table of Contents

Introduction

About This Book

Conventions Used in This Book

What You Are Not to Read

Foolish Assumptions

How This Book Is Organized

Part I: Getting Started with International Finance

Part II: Determining the Exchange Rate

Part III: Understanding Long-Term Concepts and Short-Term Risks

Part IV: Conducting a Background Check: Currency Changes through the Years

Part V: The Part of Tens

Appendix

Icons Used in This Book

Where to Go from Here

Part I: Getting Started with International Finance

Chapter 1: Money Makes the World Go ’Round

Checking Out Definitions and Calculations

What’s an exchange rate?

What do you say when the exchange rate changes?

Who cares about exchange rates?

Finding Out What Determines (Or Changes) Exchange Rates

Which model to use?

Are there any prediction rules to live by?

Getting to the Long and Short of It

What’s the percent change in the exchange rate?

Can anything be done about the risk due to short-term volatility in exchange rates?

Answering Questions about the System: Fixed, Flexible, or Pegged?

Does the type of money matter for the exchange rate?

Which international monetary system is better?

Is the Euro-zone an optimum ­currency area?

Gaining Insight into the Do’s and Don’ts of International Finance

Looking at Finance Globally

Chapter 2: Mastering the Basics of International Finance

Making the Exchange: Exchange Rates ...