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¡¡¡¡International finance is the branch of financial economics that deals with monetary and macroeconomic interrelations between two or more countries. It concemed with topics that include dynamics of the global financial system£¬ intemational monetary systems£¬ balance of payments£¬ exchange rates£¬ and foreign direct investment£¬ Intemational finance also involves issues pertaining to financial management£¬ such as political and foreign exchange risk that comes with managing multinational corporations£¬ and how these topics relate to intemational trade. This textbook is aimed to aid economy and management undergraduate students in understanding the theories of Mundell-Fleming model£¬ the optimum currency area theory£¬ purchasing power parity£¬ interest rate parity£¬ and the international Fisher effect£¬ and to help them to gain the ability to assess and manage international risks£¬ such as political risk and foreign exchange risk£¬ including transaction exposure£¬ economic exposure£¬ and translation exposure.¡¡¡¡I would like to acknowledge the many insights and suggestions provided by the reviewers£¬ as well as a number of our colleges and students. I also thank those who provided the aids in publishing this book£¬ including the sponsor£¬ Overseas Education College of Jiangsu University and the editor£¬ Ms. Liu Yan.