Due to the accelerated global integration that the world has witnessed in recent years, international trade has grown exponentially. As recipients of direct investments from developed nations, emerging countries have benefited enormously from this process. Every sound investment decision demands the application of modern financial theory. However, the theories that are advanced are most often set in the context of developed countries, and do not capture the intricacies of operating in the developing world. Despite the importance of investment flows to developing countries today, it is surprising that so little has been done to adapt financial principles to the special realities of these countries. This book has been written with the objective of filling this void. Financial Decisions in Emerging Markets is the first corporate finance book to take into account the context of emerging markets and the problems they present, including the relative lack of market efficiency. Reviewing financial theory, it focuses on investment and financing decisions as they relate to investors in emerging markets. The objective is to juxtapose the assumptions of financial theory against the realities prevailing in emerging countries and to propose more relevant approaches for investment analysis in these nations. Providing readers with a solid background to evaluate investments in emerging countries, this book is ideal for graduate students taking courses in financial decisions in emerging markets, corporate finance in developing countries, and international corporate finance. From the Foreword: "This book will appeal to practitioners, development experts as well as students of finance interested in emerging markets--in the latter case perhaps using a standard textbook complemented by the present volume's perspective on 'what's different?' In this context, the book should be welcomed by scholars and practitioners alike."--Ingo Walter, New York University This is the first corporate finance book to take into account the context of emerging markets and the problems they present, including the relative lack of market efficiency. Jaime Sabal is at Instituto de Estudios Superiores de Administracion.