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Study sets matching "finance international business"

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Study sets matching "finance international business"

International Monetary Fund Business Finance
186
To maintain international financial st…
To support free trade of goods and ser…
When there is a crisis occuring in tha…
Number of members in the IMF
Role of the International Monetary Fund
IMF policies
circumstances which the IMF develops a rescue package
186
Number of members in the IMF
To maintain international financial st…
Role of the International Monetary Fund
112 terms
International Business - Finance
Why does trade occur?
International Trade Theories: Early Co…
International Trade Theories: Modern F…
Country Based: Mercantilism
1. both parties benefit... 2. exports spark economic activity ... 3…
-focused on individual country... -useful for describing trade c…
-focused on firm's role in promoting international trade... -use…
-16th century economic philosophy ... -enlarge holdings by promo…
Why does trade occur?
1. both parties benefit... 2. exports spark economic activity ... 3…
International Trade Theories: Early Co…
-focused on individual country... -useful for describing trade c…
18 terms
English for business - International finance
currency
foreign exchange
bill of exchange
hard currency
valuta, pénznem
deviza
váltó
kemény valuta
currency
valuta, pénznem
foreign exchange
deviza
9 terms
Business Studies - Internal Finance
Finance
Internal Finance
External Finance
Owner's Capital... (Owner's Equity)
The money a business needs to start and to operate.
Finance that comes from within the business.
Finance that comes from outside the business.
Any monies the owner may have access to. For example: savings…
Finance
The money a business needs to start and to operate.
Internal Finance
Finance that comes from within the business.
61 terms
International Business Finance
Managements goal:
Agency Problem:
Agency Cost:
How can the parent control the agency…
Maximize stock price/ shareholder wealth
Conflict of goals between managers and shareholders
Cost of insuring that managers maximize shareholder wealth
Clearly communicating goals for each subsidiary to ensure man…
Managements goal:
Maximize stock price/ shareholder wealth
Agency Problem:
Conflict of goals between managers and shareholders
62 terms
International business finance MC
the goal of a multinational corporatio…
agency costs faced by MNCs may be larg…
which of the following is correct rega…
which of the following is not mentione…
the maximization of shareholder wealth
monitoring of managers located in foreign countries is more d…
dome MNCs allow subsidiary mangers to make the key decisions…
legal constraints (so environmental, regulator, and ethical w…
the goal of a multinational corporatio…
the maximization of shareholder wealth
agency costs faced by MNCs may be larg…
monitoring of managers located in foreign countries is more d…
25 terms
International Finance and Business
Gold Standard
Exchange Rate
Convertible Currency
Hyperinflation
1 oz gold/$35
Usually expressed in the world's most important currencies, i…
currency that can be exchanged for another state's currency,…
Extremely high, uncontrolled inflation
Gold Standard
1 oz gold/$35
Exchange Rate
Usually expressed in the world's most important currencies, i…
12 terms
Business - Internal Finance
Friends and Fam
Bank
Peer to peer
Business angel
Usually no interest. Usually most accessible form of borrowing.
Large financial organisations who offer a range of services i…
P2P. Unrelated individuals.
Affluent individual who provides capital for a business start…
Friends and Fam
Usually no interest. Usually most accessible form of borrowing.
Bank
Large financial organisations who offer a range of services i…
103 terms
International Business Finance Exam 1
Explain the agency problem of MNCs
Why might agency costs be larger for a…
Explain how the theory of comparative…
Explain how the product cycle theory r…
The agency problem reflects a conflict of interests between d…
The agency costs are normally larger for MNCs than purely dom…
The theory of comparative advantage implies that countries sh…
The product cycle theory suggests that at some point in time,…
Explain the agency problem of MNCs
The agency problem reflects a conflict of interests between d…
Why might agency costs be larger for a…
The agency costs are normally larger for MNCs than purely dom…
10 terms
Finance and International Business 7.1
Capacity
Rebuttable Presumption
Majority
Minority
is the legal ability to enter a contract
when individuals enter a contract, they are permitted by law…
someone who has not reached the age of adulthood
someone who is below the age of minority
Capacity
is the legal ability to enter a contract
Rebuttable Presumption
when individuals enter a contract, they are permitted by law…
25 terms
International Business Finance Chp. 1
Agency Problem
Comparative Advantage
Country Risk
Direct Foreign Investment (DFI)
the existence of a conflict of foals in a corporation (where…
an advantage a country possesses in the manufacture of goods
the potentially adverse impact of a country's environment on…
any method of increasing international business that requires…
Agency Problem
the existence of a conflict of foals in a corporation (where…
Comparative Advantage
an advantage a country possesses in the manufacture of goods
117 terms
International Business Finance Exam 1
Explain the agency problem of MNCs
Why might agency costs be larger for a…
Explain how the theory of comparative…
Explain how the product cycle theory r…
The agency problem reflects a conflict of interests between d…
The agency costs are normally larger for MNCs than purely dom…
The theory of comparative advantage implies that countries sh…
The product cycle theory suggests that at some point in time,…
Explain the agency problem of MNCs
The agency problem reflects a conflict of interests between d…
Why might agency costs be larger for a…
The agency costs are normally larger for MNCs than purely dom…
13 terms
Business theme 2 - internal finance
Authorised share capital
Capital expenditure
Internal finance
Retained profit
The maximum amount that can be legally raised
Spending on business resources that can be used repeatedly ov…
Money generated by the business or its current owners
Profit after tax that is ploughed back into the business
Authorised share capital
The maximum amount that can be legally raised
Capital expenditure
Spending on business resources that can be used repeatedly ov…
24 terms
International Relations Chapter 9-Global Finance and Business
Gold Standard
Exchange Rate
Convertible Currency
Hyperinflation
Not used anymore; Tangible medium currency
Used to exchange state currency with a another state's curren…
Money that can be exchanged; some countries don't have this i…
Extremely high, uncontrolled inflation--more than 50 percent.
Gold Standard
Not used anymore; Tangible medium currency
Exchange Rate
Used to exchange state currency with a another state's curren…
13 terms
Finance and International Business 11.1-11.2
Discharged
Performance
Complete Performance
Reasonable Time
when contracts eventually come to an end
most contracts are discharged this way
as long as all terms have been carried out properly
will vary with the circumstances of each individual case
Discharged
when contracts eventually come to an end
Performance
most contracts are discharged this way
18 terms
Finance and International Business 8.1-8.2
Gratuitous
Consideration
Benefits
Detriment
...
exchange of benefits and detriments
is something that a party was not previously entitled to rece…
is any loss suffered
Gratuitous
...
Consideration
exchange of benefits and detriments
28 terms
Chapter 20: Accounting and Finance in the International Business
investment decisions
financing decisions
money management decisions
accounting standarads
what to finance
how to finance those decisions... 1. raise funds on global capit…
how to manage the firm's financial resources most effciently
rules for preparing financial statements
investment decisions
what to finance
financing decisions
how to finance those decisions... 1. raise funds on global capit…
9 terms
Finance and International Business 10.1-10.2
Breach of Contract
Perjury
Statue of Frauds
Memorandum
is a wrongful failure to perform one or more promises of a co…
making false statements under oath
are state laws requiring that certain contracts must be in co…
the written evidence of the agreement
Breach of Contract
is a wrongful failure to perform one or more promises of a co…
Perjury
making false statements under oath
31 terms
Finance and International Business 5.1-5.2
Contract
Equity Theory
Will Theory of Contract Law
Formalist Theory
an agreement enforceable by law
parties must exchange things of equal value
parties can exercise their will... parties agreed on the same th…
meeting of the minds... acceptance
Contract
an agreement enforceable by law
Equity Theory
parties must exchange things of equal value
GL I2 Business Finance - Unit 9: Company internal Finance
cash flow
cost of sales
earnings
fixed costs
n. the movement of money into and out of a business, especial…
n. the total amount of money that a company spends on produci…
n. the profit that a company makes.
n. the amount of money used to run a company that remains the…
cash flow
n. the movement of money into and out of a business, especial…
cost of sales
n. the total amount of money that a company spends on produci…
30 terms
International Business - Chapter 19 - International Accounting and Finance Issues
International Accounting Standards Boa…
Financial Accounting Standards Board (…
Generally Accepted Accounting Principl…
International Financial Reporting Stan…
the international private-sector organization responsible for…
the private-sector organization that sets financial accountin…
the accounting standards accepted by the accounting professio…
a set of accounting standards, issued by the IASB
International Accounting Standards Boa…
the international private-sector organization responsible for…
Financial Accounting Standards Board (…
the private-sector organization that sets financial accountin…
27 terms
Finance and International Business 4.1-4.2
Crime
Tort
Rights of torts
Intentional Torts
harm specific individuals but also the general welfare
is a private wrong committed by one person against another... in…
the right to be free from bodily harm... the right to enjoy a go…
occurs when a person knows and desires the consequences of hi…
Crime
harm specific individuals but also the general welfare
Tort
is a private wrong committed by one person against another... in…
43 terms
Finance and International Business 3.1-3.2
Crime
Plantiff
Prosecutor
Defendant
is considered an act against the public good
the state or government that is representing the public... the p…
is the government official that presents the case in court
the person that is accused
Crime
is considered an act against the public good
Plantiff
the state or government that is representing the public... the p…
14 terms
Finance and International Business 12.1-12.2
Assignment
Delegation
Novation
Privity of contract
the transfer of a right under a contract
the transfer of duty
is an agreement whereby an original party to a contract is re…
Determines who can sue whom over a question of performance re…
Assignment
the transfer of a right under a contract
Delegation
the transfer of duty
42 terms
Finance and International Business 2.1-2.2
Jurisdiction
Diversity of Citizenship
District Courts
Original Jurisdiction
is the power and authority given to a court to hear a case an…
Federal Cases involving citizens of different states
have original jurisdiction (f)
a court has the authority to try a case the first time
Jurisdiction
is the power and authority given to a court to hear a case an…
Diversity of Citizenship
Federal Cases involving citizens of different states
15 terms
International relations Ch9 [Global Finance and business]
What does the 2008-2009 worldwide econ…
What disadvantage does a state face wh…
What is likely to happen if a state pr…
Why were precious metals used as curre…
the interdependence of the world financial markets
The state limits its sovereignty over its own monetary policy
higher inflation
because people around the world trusted that precious metals…
What does the 2008-2009 worldwide econ…
the interdependence of the world financial markets
What disadvantage does a state face wh…
The state limits its sovereignty over its own monetary policy
39 terms
Business Unit Two - Internal and External Finance
internal finance
owners capital
3 advantages of owners capital
2 disadvantages of owners capital
finance raised from within the business itself
money that is provided by the owner of the business from thei…
1. cheap sources of finance as there is no interest... 2. allows…
1. there is a high risk of losing everything... 2. it may not be…
internal finance
finance raised from within the business itself
owners capital
money that is provided by the owner of the business from thei…
Higher Business Management - Sources of Finance - Internal
Capital
Ordinary shares
Preference shares
Profits
The money invested in the business by an owner. Available to…
These company shares provide their shareholders variable divi…
These company shares provide their shareholders with a fixed…
Money made by the business and has not yet been spent or give…
Capital
The money invested in the business by an owner. Available to…
Ordinary shares
These company shares provide their shareholders variable divi…
6 terms
international affairs exam 2- global finance and business
gold standard
exchange rate
convertible currency
hyperinflation
A system of international monetary relations. Value of nation…
The rate at which one state's currency can be exchanged for t…
The guarantee that the holder of one currency is able to exch…
Extremely rapid, uncontrolled in prices, such as occurred in…
gold standard
A system of international monetary relations. Value of nation…
exchange rate
The rate at which one state's currency can be exchanged for t…
33 terms
International Finance
Portfolio Investment
Sovereign Lending
Foreign Direct Investment
Borrowing Benefits From Foreign Invest…
- investment via stocks, bonds, other financial instruments (…
- a form of portfolio investment ... - loans from private financ…
- investment in a foreign country via purchase/establishment…
- can build up a country... - build credit... - can increase nation…
Portfolio Investment
- investment via stocks, bonds, other financial instruments (…
Sovereign Lending
- a form of portfolio investment ... - loans from private financ…
24 terms
IT Chapter 20: Accounting and Finance in the International Business
investment decisions
financing decisions
money management decisions
accounting standarads
what to finance
how to finance those decisions
how to manage the firm's financial resources most effciently
rules for preparing financial statements
investment decisions
what to finance
financing decisions
how to finance those decisions
18 terms
International Business
International Business
Import
Export
The Balance of Trade
Comprises all commercial transactions that take place between…
An item coming inside a country from any other country.
An item going out of the country to any other country of the…
The difference between a country's import and export totals.
International Business
Comprises all commercial transactions that take place between…
Import
An item coming inside a country from any other country.
71 terms
International Finance
goal of the firm
agency costs
centralized vs. decentralized
corporate control
maximize shareholder wealth... Europe: blockholder system (large…
costs for shareholder vs. management conflict... Higher for MNC:…
cent: less agency cost... decent: closer to subsidiary needs... tec…
share options... hostile takeover... investor monitoring (large sha…
goal of the firm
maximize shareholder wealth... Europe: blockholder system (large…
agency costs
costs for shareholder vs. management conflict... Higher for MNC:…
46 terms
international finance
Purchasing Power Parity - PPP:
Fisher Effect
IFE
Covered interest arbitrage
The exchange rate adjusts so that an identical good in two di…
An economic theory proposed by economist Irving Fisher that d…
For example, if country A's interest rate is 10% and country…
A strategy in which an investor uses a forward contract to he…
Purchasing Power Parity - PPP:
The exchange rate adjusts so that an identical good in two di…
Fisher Effect
An economic theory proposed by economist Irving Fisher that d…
10 terms
International Business
Import
Export
Protectionism
Tariffs
Any resource, intermediate good, or final good or service tha…
Any resource, intermediate good, or final good or service tha…
Protection of local industries through tariffs, quotas, and r…
Taxes on imported goods and services, levied by governments t…
Import
Any resource, intermediate good, or final good or service tha…
Export
Any resource, intermediate good, or final good or service tha…
56 terms
International Relations: International Finance
International Finance
Monetary Policy
Exchange Rate
Interest Rate
a national monetary system that allows for the convienent exc…
controls the expansion or contract of money supply... Governmen…
The measure of how much one currency is worth in relation to…
price of capital
International Finance
a national monetary system that allows for the convienent exc…
Monetary Policy
controls the expansion or contract of money supply... Governmen…
78 terms
International Finance
Bond
STRIPS
Standard Instruments of a Central Bank
Open Market operations
a debt investment in which an investor loans money to an enti…
...
Open Market operations, official interest rates, exchange rat…
alter amount of money in overnight interbank markets (buys an…
Bond
a debt investment in which an investor loans money to an enti…
STRIPS
...
52 terms
international finance
greshams law
breton woods
intentions of the euro
why is international finance unique?
Gresham's law refers to the phenomenon that bad (abundant) mo…
The main objectives of the Bretton Woods system are to achiev…
to link all the UN countries together, make trade easier
conversion, political risk, economic risk, foreign exchange r…
greshams law
Gresham's law refers to the phenomenon that bad (abundant) mo…
breton woods
The main objectives of the Bretton Woods system are to achiev…
13 terms
International Finance
Steps for multinational capital budget…
Salvage Value
Terminal Value
Net Present Value (NPV)
1) Identify the initial capital invested or put at risk... 2) E…
...
...
...
Steps for multinational capital budget…
1) Identify the initial capital invested or put at risk... 2) E…
Salvage Value
...
50 terms
Business Finance
Profit
Sale Revenue (Turnover)
Gross Profit
Net Profit
The amount of money left over once the costs of that activity…
Quantity of goods sold multiplied by the selling price.
Sales revenue minus cost of sales.
Gross profit minus expenses.
Profit
The amount of money left over once the costs of that activity…
Sale Revenue (Turnover)
Quantity of goods sold multiplied by the selling price.
33 terms
International Finance
Portfolio Investment
Sovereign Lending
Foreign Direct Investment
Borrowing Benefits From Foreign Invest…
- investment via stocks, bonds, other financial instruments (…
- a form of portfolio investment ... - loans from private financ…
- investment in a foreign country via purchase/establishment…
- can build up a country... - build credit... - can increase nation…
Portfolio Investment
- investment via stocks, bonds, other financial instruments (…
Sovereign Lending
- a form of portfolio investment ... - loans from private financ…
27 terms
Business Finance
Total Revenue
Revenue (formula)
Fixed Costs
Profit (formula)
Total income earned in the accounting period from sales of go…
Selling price/unit x total units sold.
Costs that do not vary with output.
Total revenue - total costs
Total Revenue
Total income earned in the accounting period from sales of go…
Revenue (formula)
Selling price/unit x total units sold.
34 terms
International Finance
Exchange market
Exchange dealers
Spot market
Spot rate
Composed primarily of banks serving firms & consumers who wis…
Intermediaries in exchange market for exchanging currency is…
Market in which exchange transactions occur for immediate exc…
Current exchange rate of Currency
Exchange market
Composed primarily of banks serving firms & consumers who wis…
Exchange dealers
Intermediaries in exchange market for exchanging currency is…
21 terms
International business
International trade
Exporting
Importing
Mercantilism
Purchase, sale, or exchange of goods and services across nati…
Sending goods to another country for sale or trade.
Bringing in goods from another country for sale or trade.
Trade theory holding that nations should accumulate financial…
International trade
Purchase, sale, or exchange of goods and services across nati…
Exporting
Sending goods to another country for sale or trade.
22 terms
international finance
absolute advantage
comparative advantage
balance of trade
import
In economics, the principle of absolute advantage refers to t…
The benefit or advantage of an economy to be able to produce…
The balance of trade (BOT) is the difference between a countr…
Imports are defined as purchases of good or services by a dom…
absolute advantage
In economics, the principle of absolute advantage refers to t…
comparative advantage
The benefit or advantage of an economy to be able to produce…
83 terms
International Finance
exchange rate (E)
fixed (pegged) exchange rate regimes
floating (flexible) exchange rate regime
exchange rate crisis
price at which currencies trade, price of some foreign curren…
exchange rate fluctuates in a narrow range (or not at all) ag…
exchange rate fluctuates in a wider range and the government…
when the exchange rate experiences a sudden and large depreci…
exchange rate (E)
price at which currencies trade, price of some foreign curren…
fixed (pegged) exchange rate regimes
exchange rate fluctuates in a narrow range (or not at all) ag…
190 terms
International Business
Globalization
International Business
Two Types of International Business an…
In what ways does international busine…
Broadening set of interdependent relationships among people f…
All commercial transactions between two or more countries. On…
Public = has shareholders... Private = does not have shareholders
Physical... Societal... Competitive... (ex) banks- amount of public co…
Globalization
Broadening set of interdependent relationships among people f…
International Business
All commercial transactions between two or more countries. On…
23 terms
Business and finance
a trend ... (n.)
rise sharply... (vb. + adv.)
fall slightly... (vb. + adv.)
stay the same
a trend ... (n.)
rise sharply... (vb. + adv.)
International Finance
why is it harder to revalue a currency
why keep a currency strong?
why are emerging countries more succes…
how did george soros make his billions?
you have to have foreign currency to buy your currency back
1. increase purchasing power (strong $ makes imports of finis…
they can: ... 1. shut down spot markets... 2. dominate trading volu…
he took out pound loans, shorted pound bonds and went long Ge…
why is it harder to revalue a currency
you have to have foreign currency to buy your currency back
why keep a currency strong?
1. increase purchasing power (strong $ makes imports of finis…
15 terms
International Business
Communism
Economy
Market Capitalism
Economic Interdependance
System of social organization in which all property is owned…
The state of a country or region in terms of the production a…
The production of goods and services is based on supply and d…
Economic interdependence is a consequence of specialization o…
Communism
System of social organization in which all property is owned…
Economy
The state of a country or region in terms of the production a…
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