Term
| international financial management 536 |
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Definition
| the acquisition and use of funds for cross border trade, investment, R&D, manufacturing, marketing, outsourcing, and other commercial activities. |
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Term
| manage working capital and cash flow 537 |
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Definition
| administer funds passing in and out of the firm's value adding activities. |
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Term
| manage the diversity of international accounting and tax practices 537 |
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Definition
| learn how to operate in a global environment with diverse accounting practices and international tax regimes. |
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Term
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Definition
| the mix of long term equity financing and debt financing that firms use to support their international activites. It affects the profitablity and stability of the firm and its international operations. |
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Term
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Definition
| the issuance of shares of stock to raise capital from investors and the use of retained earnings to reinvest in the firm. |
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Term
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Definition
| comes from either of two sources: loans from banks and other financial intermediaries or the sale of corporate bonds to individuals or institutions. |
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Term
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Definition
| the collective financial markets where firms and governments raise short term financing. |
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Term
| global capital market 538 |
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Definition
| the colelctive financial markets where firms and governments raise intermediate and long term financing. |
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Term
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Definition
| funding for most projects come from instruments whose maturity period is over one year, we refer to all such funding . |
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Term
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Definition
| new yrok, london and tokyo. |
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Term
| why did global markets grow so rapidly in the past decade? 538-539 |
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Definition
| government's deregulation of financial markets eased movement of capital across national border, innovation in info and communication technologies accelerated the ease and speed of global transactions, globalization of business compelled firms to seek new cost effective ways to finance global operations and conduct management activites. Widespread securitization of financial instruments which resulted in convesion of illiquid financial instruments, such as bank loans, into tradable securities, like bonds. |
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Term
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Definition
| the collective financial markets where firms and governments raise short term financing. |
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Term
| global capital market 538 |
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Definition
| the collective financial markets where firms and governments raise intermediate and long term financing. |
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Term
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Definition
| the firm obtains capital by selling stock, which gives shareholders a percentage of ownership in firm and, often, a stream of dividend payments. Pros: the firm obtains capital without debt. |
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Term
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Definition
| stock exchanges worldwide whereinvestors and firms meet to buy and sell shares of exchanges in Britian, Germany, Japan and US. |
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Term
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Definition
| U.S. dollars held in banks outside the US, including foreign branches of US banks |
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Term
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Definition
| any currency deposited in a bank outside its country of origin. |
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Term
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Definition
| a debt instrument that enables the issuer to reaise capital by promising to repay the principal along with interest on a specified date |
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Term
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Definition
| the international marketplace in which bonds are bought and sold, primarily through bond brokers. |
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Term
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Definition
| a bond sold outside the issuer's country and denominated in the currency of the country where issued. |
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Term
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Definition
| a bond sold outside the issuer's home country but denominated in its own currency. |
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Term
| intracorporate financing 543 |
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Definition
| funds from sources inside the firm (both hq and subsidiaries) such as equity, loans, and trade credits. Trade credit arises in the firm when a supplier unit grants a buyer unit the option to pay at a later date. |
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Term
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Definition
| a subsidiary can defer payment for goods and services received from the paretn firm. The 30 day credit is the US norm, while 90 day credit is typical in Europe, with longer terms elsewhere. |
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Term
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Definition
| common for transferring funds from foreign subsidiaries to the parent but varying depending on tax levels and currency risks. |
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Term
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Definition
| currency risks firms face when outstanding accounts receivable or payable are denominated in foreign currencies. |
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Term
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Definition
| the currency risk that results when a firm translates financial statements denominated in a foreign currency into the functional currency of the parent firm, as part of consolidating international financial results. |
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Term
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Definition
| process of commbining and integrating the financial results of foreign subsidiaries into the financial statements of the parent firm. |
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Term
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Definition
| the currency risk that results from exchange rate fluctuations affecting price of products, the cost of inputs and the value of foreign investments. |
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Term
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Definition
| the exchange rate applied when the current exchange rate is used for immediate receipt of a currency. |
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Term
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Definition
| the exhcange rate applicable to the collection or delivery at some future date. |
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Term
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Definition
| also known as normal quote the # of units of domestic currency needed to acquire one unit of ofreign currency. |
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Term
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Definition
| # of uniits of foreign currency obtained for one unit of domestic currency. |
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Term
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Definition
| typically MNEs and other international trade or investment firms, seek to minimize their risk of exchange rate fluctuations, often by entering into forward contracts or similar financial instruments. |
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Term
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Definition
| currency traders who seek profits by investing in currencies with the expectation their value wil rise in the future and then sell them later at the higher value. A speculator might purchas e a certificate of deposit denominated in Mexican pesos or a money market account tied to the chinese yuan, believing the value of these currencies will rise. |
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Term
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Definition
| currency traders who buy and sell the same currency in two or more foreign exchange markets to profit from differencees in the currency's exchange rate. But unlike the speculator who bets on the future price of a currency this person attempts to profit from a current disequilibrium in currency markets based on known prices. |
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Term
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Definition
| accomplished via computers programmed to conduct massive buying or selling when prices reach certain levels. |
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Term
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Definition
| looks at recent movements in exchange rates |
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Term
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Definition
| studies involving macroeconomic data |
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Term
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Definition
| using financial instruments and other measures to reduce or eliminate exposure to currency risk by locking in guaranteed foreign exchange positions. |
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Term
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Definition
| each exposure is hedged as it occurs and the hedge stays in place until maturity. |
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Term
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Definition
| firm frequently reviews total exposure and hedges only a subset of its total exposures, usually those that pose the greatest risk. |
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Term
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Definition
| an agreement to exchange two currencies at a specified exchange rate on a set future date. No money changes hands until the delivery date of the contract. |
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Term
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Definition
| ana greement to buy or sell a currency in exchange for another at a specified price on a specified date. Unlike forward contracts, futures contracts are standardized to enable trading in organizatied exchanges. |
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Term
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Definition
| differs from forward and futures contracts in that it gives the purchaser the right, but not the obligation, to buy a certain amount of foreign currency at a set exchange rate within a specified amount of time. |
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Term
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Definition
| translates foreign currency balance sheets and income statements at the current exchange rate-the spot exchange rate in effect on the day (in the case of balance sheets) or for the period the statements are prepared. |
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Term
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Definition
| the choice of exchange rate depends on the underlying method of valuation. If assets and liabilities are normally valued at historical cost, then they are translated at the historical rates-that is, the rates in effect when the assets were acquired. |
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Term
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Definition
| imposed on income from profits, capital gains, intracorporate transactions, royalties, interest and dividends. |
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Term
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Definition
| flat percentage tax on the value of goods or services sold, bpaid by the ultimate user. |
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Term
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Definition
| payable at each stage of procesing in the value chain of a product or service. |
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