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Over the course of the last few years of the 20th century international banking and financial markets have changed dramatically. This second edition provides coverage both practical and theoretical but incorporates more theoretical components as a result of the increasing uses of theory by decision-makers in the market place. Each chapter contains a boxed example focusing on a theoretical issue or a current problem. There are additional sections dealing with the implications of the Euro currency, the collapse of Asian markets and the theory of the multinational firm, and a completely new chapter dealing with international bank asset/liability management.