Boundless Lecture Slides
Available on the Boundless Teaching Platform
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless Teaching
Platform
Boundless empowers educators to engage their students
with affordable, customizable textbooks and intuitive
teaching tools. The free Boundless Teaching Platform
gives educators the ability to customize textbooks in
more than 20 subjects that align to hundreds of popular
titles. Get started by using high quality Boundless books,
or make switching to our platform easier by building from
Boundless content pre-organized to match the assigned
textbook. This platform gives educators the tools they
need to assign readings and assessments, monitor
student activity, and lead their classes with pre-made
teaching resources.
Using Boundless Presentations
The Appendix
The appendix is for you to use to add depth and
breadth to your lectures. You can simply drag and
drop slides from the appendix into the main
presentation to make for a richer lecture
experience.
Get started now at:
http://boundless.com/teaching-platform
Free to edit, share, and copy
Feel free to edit, share, and make as many copies
of the Boundless presentations as you like. We
encourage you to take these presentations and
make them your own.
If you have any questions or problems please email:
educators@boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
About Boundless
Boundless is an innovative technology company making education more affordable and
accessible for students everywhere. The company creates the world’s best open educational
content in 20+ subjects that align to more than 1,000 popular college textbooks. Boundless
integrates learning technology into all its premium books to help students study more efficiently
at a fraction of the cost of traditional textbooks. The company also empowers educators to
engage their students more effectively through customizable books and intuitive teaching tools
as part of the Boundless Teaching Platform. More than 2 million learners access Boundless free
and premium content each month across the company’s wide distribution platforms, including its
website, iOS apps, Kindle books, and iBooks. To get started learning or teaching with
Boundless, visit boundless.com.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial
Management
Outside of the U.S.
Types of International Business
The International Business Environment
Factors Impacting Exchange Rates
Types of Rates and Transactions
Managing Exchange Risk
Boundless.com/finance?campaign_content=book_192_ch
apter_21&campaign_term=Finance&utm_campaign=powe
rpoint&utm_medium=direct&utm_source=boundless
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial
Management
Outside of the U.S.
(continued)
International Investment and Finance
Boundless.com/finance?campaign_content=book_192_ch
apter_21&campaign_term=Finance&utm_campaign=powe
rpoint&utm_medium=direct&utm_source=boundless
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S. > Types of International Business
Types of International Business
• Definition and Challenges of a Global Corporation
• Countertrade
• Multinational Firms
• Direct Investment
• Offshoring
• Outsourcing
• Licensing
• Importing
• Joint Ventures
• Contract Manufacturing
• Franchising
• Exporting
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance?campaign_content=book_192_chapter_21&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=dir
ect&utm_source=boundless
Financial Management Outside of the U.S. > Types of International Business
Definition and Challenges of a Global Corporation
• A multinational corporation (MNC) is present in several countries, which improves
the company's ability to maintain market share and earn higher profits.
• As GDP growth migrates from mature economies, such as the US and EU
member states, to developing economies, such as China and India, it becomes
highly relevant to capture growth in higher growth markets.
• Despite the general opportunities a global market provides, there are significant
challenges in penetrating these markets. These consist of public relations, ethics,
corporate structure, and leadership.
• Combining these challenges with the inherent opportunities a global economy
presents, companies are encouraged to pursue high value opportunities while
GDP Growth Rate by Country
View on Boundless.com
carefully controlling the risks involved.
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/definition-and-challenges-of-a-global-corporation-546-
Financial Management Outside of the U.S. > Types of International Business
Countertrade
• Countertrade is the exchange of goods or services for other goods or services.
This system can be typified as simple bartering, switch trading, counter purchase,
buyback, or offset.
• Switch trading: Party A and B are countertrading salt for sugar. Party A may
switch its obligation to pay Party B to a third party, known as the switch trader.
The switch trader gets the sugar from Party B at a discount and sells it for money.
The money is used as Party A's payment to Party B.
• Counter purchase: Party A sells salt to Party B. Party A promises to make a future
purchase of sugar from Party B.
• Buyback: Party A builds a salt processing plant in Country B, providing capital to
View on Boundless.com
this developing nation. In return, Country B pays Party A with salt from the plant.
• Offset agreement: Party A and Country B enter a contract where Party A agrees
to buy sugar from Country B to manufacture candy. Country B then buys that
candy.
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/countertrade-547-
Financial Management Outside of the U.S. > Types of International Business
Multinational Firms
• Multinational corporations operate in multiple countries.
• MNCs have considerable bargaining power and may negotiate business or trade
policies with success.
• A corporation may choose to locate in a special economic zone, a geographical
region that has economic and other laws that are more free-market-oriented than
a country's typical or national laws.
Ford Motor Corp.
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/multinational-firms-548-
Financial Management Outside of the U.S. > Types of International Business
Direct Investment
• FDI is the flow of investments from one company to production in a foreign nation,
with the purpose of lowering labor costs and gaining tax incentives.
• FDI can help the economic situations of developing countries, as well as facilitate
progressive internal policy reforms.
• A major contributing factor to increasing FDI flow was internal policy reform
relating to trade openness and participation in international trade agreements and
institutions.
Sao Paulo
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/direct-investment-549-
Financial Management Outside of the U.S. > Types of International Business
Offshoring
• Offshoring is the relocation of certain business processes from one country to the
other, resulting in large tax breaks and lower labor costs.
• Offshoring can cause controversy in a company's domestic country since it is
perceived to impact the domestic employment situation negatively.
• Offshoring of a company's services that were previously produced domestically
can be advantageous in lowering operation costs, but has incited some
controversy over the economic implications.
Worldwide Offshoring Business
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/offshoring-550-
Financial Management Outside of the U.S. > Types of International Business
Outsourcing
• Outsourcing is the contracting of business processes to external firms, usually in
developing countries where labor costs are cheaper.
• This practice has increased in prevalence due to better technology and
improvements in the educational standards of the countries to which jobs are
outsourced.
• The opposite of outsourcing is called insourcing, and it is sometimes
accomplished via vertical integration. However, a business can provide a contract
service to another business without necessarily insourcing that business process.
Outsourcing
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/outsourcing-551-
Financial Management Outside of the U.S. > Types of International Business
Licensing
• Licensing is a business agreement involving two companies: one gives the other
special permissions, such as using patents or copyrights, in exchange for
payment.
• An international business licensing agreement involves two firms from different
countries, with the licensee receiving the rights or resources to manufacture in the
foreign country.
• Rights or resources may include patents, copyrights, technology, managerial
skills, or other factors necessary to manufacture the good.
• Advantages of expanding internationally using international licensing include: the
ability to reach new markets that may be closed by trade restrictions and the
Batman
View on Boundless.com
ability to expand without too much risk or capital investment.
• Disadvantages include the risk of an incompetent foreign partner firm and lower
income compared to other modes of international expansion.
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/licensing-552-
Financial Management Outside of the U.S. > Types of International Business
Importing
• A country specializes in the export of goods for which it has a comparative
advantage and imports those for which it has a comparative disadvantage. By
doing so, the country can increase its welfare.
• Comparative advantage describes the ability of a country to produce one specific
good more efficiently than other goods.
• A country enhances its welfare by importing a broader range of higher-quality
goods and services at lower cost than it could produce domestically.
Singapore
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/importing-553-
Financial Management Outside of the U.S. > Types of International Business
Joint Ventures
• Joint business ventures involve two parties contributing their own equity and
resources to develop a new project. The enterprise, revenues, expenses and
assets are shared by the involved parties.
• Since money is involved in a joint venture, it is necessary to have a strategic plan
in place.
• As the cost of starting new projects is generally high, a joint venture allows both
parties to share the burden of the project as well as the resulting profits.
Joint Venture
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/joint-ventures-554-
Financial Management Outside of the U.S. > Types of International Business
Contract Manufacturing
• A hiring firm may enter a contract with a contract manufacturer (CM) to produce
components or final products on behalf of the hiring firm for some agreed-upon
price.
• There are many benefits to contract manufacturing, and companies are finding
many reasons why they should be outsourcing their production to other
companies.
• Production outside of the company does come with many risks attached.
Companies must first identify their core competencies before deciding about
contract manufacture.
Contract Manufacture
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/contract-manufacturing-555-
Financial Management Outside of the U.S. > Types of International Business
Franchising
• Essentially, and in terms of distribution, the franchiser is a supplier who allows an
operator, or a franchisee, to use the supplier's trademark and distribute the
supplier's goods. In return, the operator pays the supplier a fee.
• Thirty three countries, including the United States, China, and Australia, have
laws that explicitly regulate franchising, with the majority of all other countries
having laws which have a direct or indirect impact on franchising.
• Franchise agreements carry no guarantees or warranties, and the franchisee has
little or no recourse to legal intervention in the event of a dispute.
Subway Franchise - Russia
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/franchising-556-
Financial Management Outside of the U.S. > Types of International Business
Exporting
• This term export is derived from the conceptual meaning as to ship the goods and
services out of the port of a country.
• In national accounts "exports" consist of transactions in goods and services
(sales, barter, gifts or grants) from residents to non-residents.
• Statistics on international trade do not record smuggled goods or flows of illegal
services. A small fraction of the smuggled goods and illegal services may
nevertheless be included in official trade statistics through dummy shipments that
serve to conceal the illegal nature of the activities.
Oil Exports 2006
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-international-business136/exporting-557-
Financial Management Outside of the U.S. > The International Business Environment
The International Business Environment
• Overview of the International Business Environment
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance?campaign_content=book_192_chapter_21&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=dir
ect&utm_source=boundless
Financial Management Outside of the U.S. > The International Business Environment
Overview of the International Business Environment
• The international business environment can be defined as the environment in
different sovereign countries, with factors exogenous to the home environment of
the organization, influencing decision-making on resource use and capabilities.
• The political environment in a country influences the legislation and government
rules and regulations under which a foreign firm operates.
• The technological environment comprises factors related to the materials and
machines used in manufacturing goods and services.
• Economic factors exert huge impacts on firms working in an international
business environment. The economic environment relates to all the factors that
Coca-Cola
contribute to a country's attractiveness for foreign businesses, such as monetary
View on Boundless.com
systems, inflation, and interest rates.
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/the-international-businessenvironment-137/overview-of-the-international-business-environment-558-
Financial Management Outside of the U.S. > Factors Impacting Exchange Rates
Factors Impacting Exchange Rates
• Overview of Exchange Rates
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance?campaign_content=book_192_chapter_21&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=dir
ect&utm_source=boundless
Financial Management Outside of the U.S. > Factors Impacting Exchange Rates
Overview of Exchange Rates
• An exchange rate between two currencies is the rate at which one currency will
be exchanged for another. It is also regarded as the value of one country's
currency in terms of another currency.
• Quotes using a country's home currency as the price currency are known as
direct quotation. Quotes using a country's home currency as the unit currency are
known as indirect quotation. Using direct quotation, if the home currency is
strengthening, then the exchange rate number decreases.
• There are many factors that impact exchange rates, such as inflation, interest
rates, balance of payments, and government policy.
Exchange rates
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/factors-impacting-exchangerates-138/overview-of-exchange-rates-559-
Financial Management Outside of the U.S. > Types of Rates and Transactions
Types of Rates and Transactions
• Spot Rates, Forward Rates, and Cross Rates
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance?campaign_content=book_192_chapter_21&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=dir
ect&utm_source=boundless
Financial Management Outside of the U.S. > Types of Rates and Transactions
Spot Rates, Forward Rates, and Cross Rates
• A spot contract is a contract of buying or selling a commodity, security or currency
for settlement (payment and delivery) on the spot date, which is normally two
business days after the trade date. The settlement price (or rate) is called spot
price or spot rate.
• A spot contract is in contrast with a forward contract where contract terms are
agreed now but delivery and payment will occur at a future date. The settlement
price of a forward contract is called forward price or forward rate.
• Spot rates can be used to calculate forward rates. In theory, the difference in spot
and forward prices should be equal to the finance charges, plus any earnings due
to the holder of the security, according to the cost of carry model.
Forward rate
View on Boundless.com
• A cross rate is the currency exchange rate between two currencies, both of which
are not the official currencies of the country in which the exchange rate quote is
given in.
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/types-of-rates-and-transactions139/spot-rates-forward-rates-and-cross-rates-560-
Financial Management Outside of the U.S. > Managing Exchange Risk
Managing Exchange Risk
• Types of Exchange Exposure: Short-Run, Long-Run, and Translation
• Types of Exchange Hedges: Forward, Money Market, and Future
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance?campaign_content=book_192_chapter_21&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=dir
ect&utm_source=boundless
Financial Management Outside of the U.S. > Managing Exchange Risk
Types of Exchange Exposure: Short-Run, Long-Run, and
Translation
• A firm has transaction exposure/ short-term exposure whenever it has contractual
cash flows (receivables and payables) whose values are subject to unanticipated
changes in exchange rates due to a contract being denominated in a foreign
currency.
• A firm has economic exposure/ long-term exposure to the degree that its market
value is influenced by unexpected exchange rate fluctuations. Such exchange
rate adjustments can severely affect the firm's position with regards to its
competitors, the firm's future cash flows, and the firm's value.
• A firm's translation exposure is the extent to which its financial reporting is
affected by exchange rate movements.
Foreign currency exposure
View on Boundless.com
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/managing-exchange-risk140/types-of-exchange-exposure-short-run-long-run-and-translation-561-
Financial Management Outside of the U.S. > Managing Exchange Risk
Types of Exchange Hedges: Forward, Money Market, and
Future
• In case of exchanges, if the company is going to receive a large sum of foreign
currency from customers it bears the risk that the currency will depreciate and the
company will go short in a currency forward contract. If the company is going to
pay its suppliers, it instead will go long.
• Foreign exchange swaps are a common type of money market instrument,
involving the exchange of a set of currencies in spot date and the reversal of the
exchange at a predetermined time in the future. Their commonest use is for
institutions to fund their foreign exchange balances.
• Futures are very similar to forwards, except they are exchange-traded, or defined
on standardized assets. Futures also typically have interim partial settlements, or
Foreign exchange rates
View on Boundless.com
"true-ups," in margin requirements.
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/managing-exchange-risk140/types-of-exchange-hedges-forward-money-market-and-future-562-
Financial Management Outside of the U.S. > International Investment and Finance
International Investment and Finance
• Funding the International Business
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance?campaign_content=book_192_chapter_21&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=dir
ect&utm_source=boundless
Financial Management Outside of the U.S. > International Investment and Finance
Funding the International Business
• In economics, funds are injected into the market as capital by lenders and taken
up as loans by borrowers. There are two ways in which the capital can end up at
the borrower: direct finance and indirect finance.
• Funding an international business has to take into consideration the political risk
of the country that the company is going to operate in. Political risk in funding an
international business can result in a financial loss for a firm.
• A international business chooses sources of funding, based on its capital
structure, to find the best debt-to-equity ratio that maximizes its value.
• A business can choose different sources of funds: export-import banks, with-in
company loans, Eurobonds, new issuance in international equity markets, and
Flows of funds
View on Boundless.com
international financial corporations.
Free to share, print, make copies and changes. Get yours at www.boundless.com
www.boundless.com/finance/textbooks/boundless-finance-textbook/financial-management-outside-of-the-u-s-21/international-investment-andfinance-141/funding-the-international-business-563-
Appendix
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Key terms
• arbitrage Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the
transaction cost
• balance of payment an accounting record of all monetary transactions between a country and the rest of the world. These
transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers.
The BoP accounts summarize international transactions for a specific period, usually a year, and are prepared in a single
currency, typically the domestic currency for the country concerned.
• barter The exchange of goods or services without involving money.
• bootstrapping method In finance, bootstrapping is a method for constructing a (zero-coupon) fixed-income yield curve from the
prices of a set of coupon-bearing products (e.g., bonds and swaps).Using these zero-coupon products, it becomes possible to
derive par swap rates (forward and spot) for all maturities by making a few assumptions (including linear interpolation). The
term structure of spot returns is recovered from the bond yields by solving for them recursively, by forward substitution. This
iterative process is called the Bootstrap Method.
• capital structure Refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid
securities.
• captive held prisoner; not free; confined
• comparative advantage The concept that a certain good can be produced more efficiently than others due to a number of
factors, including productive skills, climate, natural resource availability, and so forth.
• competitiveness Pertains to the ability and performance of a firm, sub-sector or country to sell and supply goods and services in
a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market.
• Contract manufacturing Business model in which a firm hires a contract manufacturer to produce components or final products
based on the hiring firm's design.
• Contract manufacturing a business model where a firm hires another firm to produce components or products
• cost of capital the rate of return that capital could be expected to earn in an alternative investment of equivalent risk
• counter purchase Sale of goods and services to one company in another country by a company that promises to make a future
Free to share, print, make copies and changes. Get yours at www.boundless.com
purchase of a specific product from the same company in that country.
Financial Management Outside of the U.S.
• debt-to-equity ratio Also known as the D/E ratio; a financial ratio indicating the relative proportion of shareholders' equity and
debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage.
• economies of scale The characteristics of a production process in which an increase in the scale of the firm causes a decrease
in the long run average cost of each unit.
• economies of scope Lowering average cost for a firm in producing two or more products through the common and recurrent
use of proprietary know-how or an indivisible physical asset.
• eurobond an international debt instrument denominated in a currency not native to the country where it is issued
• exchange rate the amount of one currency that a person or institution defines as equivalent to another when either buying or
selling it at any particular moment
• export to sell (goods) to a foreign country
• exporting the sale of capital, goods, and services across international borders or territories
• exporting the act of selling to a foreign country
• foreign bond an international debt instrument denominated in the home currecy but issued by a foreign company
• foreign currency exposures Foreign currency exposure is a financial risk posed by an exposure to unanticipated changes in the
exchange rate between two currencies. Investors and multinational businesses exporting or importing goods and services or
making foreign investments throughout the global economy are exposed to foreign currency risk which can have severe
financial consequences if not managed appropriately
• Foreign direct investment investment directly into production in a country by a company located in another country, either by
buying a company in the target country or by expanding operations of an existing business in that country.
• forward exchange rate the agreed upon price to exchange one currency for another at a future date
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
• franchise The authorization granted by a company to sell or distribute its goods or services in a certain area.
• franchisee A holder of a franchise; a person who is granted a franchise.
• franchiser A franchisor, a company which or person who grants franchises.
• franchising the establishment, granting, or use of a franchise
• import To bring (something) in from a foreign country, especially for sale or trade.
• import To bring (something) in from a foreign country, especially for sale or trade.
• insourcing The obtaining of goods or services using domestic resources or employees as opposed to foreign.
• Interest rate parity a no-arbitrage condition representing an equilibrium state under which investors will be indifferent to interest
rate available on bank deposits in two countries.
• joint venture A cooperative partnership between two individuals or businesses in which profits and risks are shared.
• license the legal terms under which a person is allowed to use a product
• Licensing A business arrangement in which one company gives another company permission to manufacture its product for a
specified payment.
• margin Collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their
counterparty.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
• monetary system A set of policy tools and institutions through which a government provides money and controls the money
supply in an economy.
• Multinational corporation A corporation or enterprise that operates in multiple countries.
• offshoring The location of a business in another country for tax purposes.
• offshoring The location of a business in another country for tax purposes.
• outsourcing The transfer of a business function to an external service provider.
• outsourcing The transfer of a business function to an external service provider.
• outsourcing the transfer of a business function to an external service provider
• spot exchange rate the agreed upon price of buying one currency in terms of another now
• Switch trading Practice in which one company sells to another its obligation to make a purchase in a given country.
• the law of one price The real price of a good must be the same across all countries.
• underlying assets In finance, the underlying of a derivative is an asset, basket of assets, index, or even another derivative, such
that the cash flows of the (former) derivative depend on the value of this underlying.
• value-chain The series of operations necessary for a business to operate.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Singapore
The Port of Singapore is one of the busiest in the world because Singapore must import most of its foodstuffs and consumer goods.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikipedia. "SingaporePort1." CC BY http://en.wikipedia.org/wiki/File:SingaporePort1.JPG View on Boundless.com
Financial Management Outside of the U.S.
Sao Paulo
Sao Paulo, Brazil, home to a growing middle class and significant direct investments.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Creative Commons. "fundraising campaign - Creative Commons." CC BY-SA http://creativecommons.org/tag/fundraising-campaign/page/3 View on Boundless.com
Financial Management Outside of the U.S.
Subway Franchise - Russia
There are over 22,000 Subway restaurant franchises worldwide.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. "SubwayRestaurantRussia2011." CC BY-SA http://commons.wikimedia.org/wiki/File%253ASubwayRestaurantRussia2011.JPG View on Boundless.com
Financial Management Outside of the U.S.
GDP Growth Rate by Country
This map highlights (via dark green) where the strongest growth opportunities currently are (as of 2010).
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. CC BY-SA http://upload.wikimedia.org/wikipedia/commons/e/e7/GDP_real_growth_rate_CIA_Factbook.PNG View on Boundless.com
Financial Management Outside of the U.S.
Ford Motor Corp.
Ford is a MNC with operations throughout the world.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia Foundation. "File:Ford logo.svg - Wikimedia Foundation." CC BY-SA http://wikimediafoundation.org/wiki/File:Ford_logo.svg View on Boundless.com
Financial Management Outside of the U.S.
Outsourcing
Outsourcing is the process of contracting an existing business process which an organization previously performed internally to an independent
organization, where the process is purchased as a service.
Free to share, print, make copies and changes. Get yours at www.boundless.com
EQOD. "Business Outsourcing Services." CC BY http://www.eqod.com/business_outsourcing.html View on Boundless.com
Financial Management Outside of the U.S.
Coca-Cola
The Coca-Cola Company (NYSE: KO) is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic
beverage concentrates and syrups. It works in an international business environment.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Fotopedia. CC BY http://images.cdn.fotopedia.com/flickr-1455131734-original.jpg View on Boundless.com
Financial Management Outside of the U.S.
Worldwide Offshoring Business
Worldwide Offshoring Business
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia Foundation. "File:Worldwide-Offshoring-Business.JPG - Wikimedia Foundation." CC BY-SA http://wikimediafoundation.org/wiki/File:WorldwideOffshoring-Business.JPG View on Boundless.com
Financial Management Outside of the U.S.
Foreign currency exposure
DAX appreciated in the early 2008, presenting a short-run exchange exposure to companies paying DAX to its suppliers.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. "Xccy-Risk." CC BY-SA http://commons.wikimedia.org/wiki/File:Xccy-Risk.png View on Boundless.com
Financial Management Outside of the U.S.
Foreign exchange rates
The exchange rate of GBP/ USD decreased from 1985 to 1987. One should go long GBP and short USD.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. "Foreign Exchange Rate (DEM,FRF,GBP,JPY vs USD)." CC BY-SA
http://commons.wikimedia.org/wiki/File:Foreign_Exchange_Rate_(DEM,FRF,GBP,JPY_vs_USD).png View on Boundless.com
Financial Management Outside of the U.S.
Batman
The Batman character has been licensed to many companies, such as Lego.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Flickr. "Batman | Flickr - Photo Sharing!." License: Other http://www.flickr.com/photos/donabelandewen/2703037768/lightbox/ View on Boundless.com
Financial Management Outside of the U.S.
Forward rate
On a share, the difference in price between the spot and forward is usually accounted for almost entirely by any dividends payable in the period minus
the interest payable on the purchase price.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikipedia. "Forward price." GNU FDL http://en.wikipedia.org/wiki/Forward_price View on Boundless.com
Financial Management Outside of the U.S.
Contract Manufacture
Manufacture of Ness Corporation in Seven Hills, Australia
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia Foundation. CC BY-SA http://wikimediafoundation.org/wiki/File:Ness_Corporation_Manufacture.jpg View on Boundless.com
Financial Management Outside of the U.S.
Joint Venture
Sony Ericsson is a joint venture between Swedish telecom corporation Ericsson and Japanese electronics manufacturer Sony to develop cellular
devices.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. "Sony Ericsson sign." CC BY-SA http://commons.wikimedia.org/wiki/File:Sony_Ericsson_sign.jpg View on Boundless.com
Financial Management Outside of the U.S.
Oil Exports 2006
Barrels of oil exported per day in 2006.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikimedia. "Oil exports." GNU FDL http://commons.wikimedia.org/wiki/File:Oil_exports.PNG View on Boundless.com
Financial Management Outside of the U.S.
Flows of funds
There are two ways in which the capital can end up at the borrower: direct and indirect finance.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikipedia. "Flow of Funds." CC BY-SA http://en.wikipedia.org/wiki/File:Flow_of_Funds.svg View on Boundless.com
Financial Management Outside of the U.S.
Exchange rates
Exchange rates displayed in Thailand
Free to share, print, make copies and changes. Get yours at www.boundless.com
Wikipedia. "Exchange rate." GNU FDL http://en.wikipedia.org/wiki/Exchange_rate View on Boundless.com
Financial Management Outside of the U.S.
Expanding the value chain to efficiently capture value in global
markets, particularly in regards to sourcing, is a central
component of which global challenge?
A) Leadership
B) Organizational structure
C) Ethics
D) Public relations
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Expanding the value chain to efficiently capture value in global
markets, particularly in regards to sourcing, is a central
component of which global challenge?
A) Leadership
B) Organizational structure
C) Ethics
D) Public relations
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
One of the most underestimated challenges encountered by
companies when entering a new global region is recognition. For
example, Best Buy failed in China as a direct result of not
localizing their brand and product offerings. This is a failure of:
A) Public relations
B) Ethics
C) Leadership
D) Organizational Structure
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
One of the most underestimated challenges encountered by
companies when entering a new global region is recognition. For
example, Best Buy failed in China as a direct result of not
localizing their brand and product offerings. This is a failure of:
A) Public relations
B) Ethics
C) Leadership
D) Organizational Structure
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Suppose Apple builds a plant in Taiwan and and agrees to take
30% of the plant's output as partial payment for the contract. This
is called:
A) Offset
B) Counter purchase
C) Switch trading
D) Buyback
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Suppose Apple builds a plant in Taiwan and and agrees to take
30% of the plant's output as partial payment for the contract. This
is called:
A) Offset
B) Counter purchase
C) Switch trading
D) Buyback
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
The one reason MNC can be harmful for the host country is:
A) They pay less than local labor rates
B) They often avoid taxes
C) They obtain strong negotiating power with local government
D) They raise unemployment levels
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
The one reason MNC can be harmful for the host country is:
A) They pay less than local labor rates
B) They often avoid taxes
C) They obtain strong negotiating power with local government
D) They raise unemployment levels
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
A company might put money in FDI because:
A) Tax advantage
B) All of these answers
C) Cheap labor
D) High return
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
A company might put money in FDI because:
A) Tax advantage
B) All of these answers
C) Cheap labor
D) High return
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Assume you own an American office supplies company. Which
part of your business process would most likely be relocated to
another country?
A) Management
B) Manufacturing
C) Sales
D) Marketing
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Assume you own an American office supplies company. Which
part of your business process would most likely be relocated to
another country?
A) Management
B) Manufacturing
C) Sales
D) Marketing
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
One of the downsides of outsourcing for a company is that it:
A) Raises costs
B) Reduces confidentiality
C) Raises taxes
D) Raises energy costs
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
One of the downsides of outsourcing for a company is that it:
A) Raises costs
B) Reduces confidentiality
C) Raises taxes
D) Raises energy costs
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following is NOT an advantage of international
licensing?
A) Reach ingnew markets
B) Complete control over manufacturing
C) Retaining established markets
D) Obtaining extra income
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following is NOT an advantage of international
licensing?
A) Reach ingnew markets
B) Complete control over manufacturing
C) Retaining established markets
D) Obtaining extra income
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following allows a foreign company to sell a
company’s products or use its intellectual property in exchange for
royalty fees?
A) Strategic alliance
B) Joint venture
C) Licensing agreement
D) Offshoring
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following allows a foreign company to sell a
company’s products or use its intellectual property in exchange for
royalty fees?
A) Strategic alliance
B) Joint venture
C) Licensing agreement
D) Offshoring
Free to share, print, make copies and changes. Get yours at www.boundless.com
Saylor OER. "Business Administration « Saylor.org – Free Online Courses Built by Professors." CC BY 3.0 http://www.saylor.org/majors/Business/
Financial Management Outside of the U.S.
How does a country improve its welfare through imports?
A) Importing low quality goods at a lower cost
B) Importing low quality goods at a higher cost
C) Importing high quality goods at a lower cost
D) Importing high quality goods at a higher cost
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
How does a country improve its welfare through imports?
A) Importing low quality goods at a lower cost
B) Importing low quality goods at a higher cost
C) Importing high quality goods at a lower cost
D) Importing high quality goods at a higher cost
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Each country will specialize in making the good that it can make
most efficiently, relative to the other country. This description best
defines which of the following?
A) Comparative advantage
B) Global advantage
C) Absolute advantage
D) Fiscal advantage
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Each country will specialize in making the good that it can make
most efficiently, relative to the other country. This description best
defines which of the following?
A) Comparative advantage
B) Global advantage
C) Absolute advantage
D) Fiscal advantage
Free to share, print, make copies and changes. Get yours at www.boundless.com
Saylor OER. "Business Administration « Saylor.org – Free Online Courses Built by Professors." CC BY 3.0
http://www.saylor.org/majors/Business/
Financial Management Outside of the U.S.
In order to be a successful joint venture, both parties must be
equally invested in a project in terms of:
A) Money
B) Time
C) Effort
D) All of these answers
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
In order to be a successful joint venture, both parties must be
equally invested in a project in terms of:
A) Money
B) Time
C) Effort
D) All of these answers
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following is NOT a benefit of contract
manufacturing?
A) Saving money on capital costs
B) Complete control of production
C) Taking advantage of the CM's skills
D) Potential for economies of s
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following is NOT a benefit of contract
manufacturing?
A) Saving money on capital costs
B) Complete control of production
C) Taking advantage of the CM's skills
D) Potential for economies of s
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following stipulations is NOT a part of the typical
franchise relationship?
A) The franchiser is protected from lawsuits from the franchisee
B) There are no warranties
C) Contracts are renewable at the option of the franchisee
D) The franchiser secures protection for the trademark
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following stipulations is NOT a part of the typical
franchise relationship?
A) The franchiser is protected from lawsuits from the franchisee
B) There are no warranties
C) Contracts are renewable at the option of the franchisee
D) The franchiser secures protection for the trademark
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
In national accounts, an export of a good in most cases is best
defined as:
A) When there is a change of ownership from a non-resident to a resident
B) When a good crosses the border
C) When there is a change of ownership from a resident to a nonresident
D) None of these answers
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
In national accounts, an export of a good in most cases is best
defined as:
A) When there is a change of ownership from a non-resident to a resident
B) When a good crosses the border
C) When there is a change of ownership from a resident to a nonresident
D) None of these answers
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following circumstances might influence a business
not to invest in a specific foreign country?
A) The country's laws provide inadequate protection for intellectual
property.
B) All of these answers.
C) The country's currency is susceptible to high inflation.
D) The country's neighbors have lower inflation rates.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following circumstances might influence a business
not to invest in a specific foreign country?
A) The country's laws provide inadequate protection for intellectual
property.
B) All of these answers.
C) The country's currency is susceptible to high inflation.
D) The country's neighbors have lower inflation rates.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Assume Japan's inflation rates increases while the U.S.'s balance
of payment (BOP) deficit increases. How will this influence the
yen-dollar exchange rate?
A) Inflation will increase the yen's value while the BOP shift will decrease
the dollar's value.
B) Inflation will decrease the yen's value while the BOP shift will decrease
the dollar's value.
C) Inflation will decrease the yen's value while the BOP shift will increase
the dollar's value.
D) Inflation will increase the yen's value while the BOP shift will increase
the dollar's value.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Assume Japan's inflation rates increases while the U.S.'s balance
of payment (BOP) deficit increases. How will this influence the
yen-dollar exchange rate?
A) Inflation will increase the yen's value while the BOP shift will decrease
the dollar's value.
B) Inflation will decrease the yen's value while the BOP shift will decrease
the dollar's value.
C) Inflation will decrease the yen's value while the BOP shift will increase
the dollar's value.
D) Inflation will increase the yen's value while the BOP shift will increase
the dollar's value.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following is a correct definition of an exchange rate?
A) A forward rate is a contract where currency is exchanged at some
point in the future.
B) All of these answers.
C) A spot rate is a contract where currency is exchanged approximately
two days after the trade.
D) The forward rate is a function of the spot rate, the time until
settlement, and a growth rate.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following is a correct definition of an exchange rate?
A) A forward rate is a contract where currency is exchanged at some
point in the future.
B) All of these answers.
C) A spot rate is a contract where currency is exchanged approximately
two days after the trade.
D) The forward rate is a function of the spot rate, the time until
settlement, and a growth rate.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
A company is concerned that the value of its accounts receivable
from overseas will decrease due to a shift in exchange rate. What
type of exchange exposure is the company concerned about?
A) Long-run exposure.
B) Short-run exposure.
C) Economic exposure.
D) Translation exposure.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
A company is concerned that the value of its accounts receivable
from overseas will decrease due to a shift in exchange rate. What
type of exchange exposure is the company concerned about?
A) Long-run exposure.
B) Short-run exposure.
C) Economic exposure.
D) Translation exposure.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following statements regarding popular exchange
risk hedges is correct?
A) All of these answers.
B) A futures contract is a standardized forward contract.
C) A foreign exchange swap consists of a spot exchange and a forward
foreign exchange.
D) If a company is going to receive foreign currency, it will "short" a
forward currency contract.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following statements regarding popular exchange
risk hedges is correct?
A) All of these answers.
B) A futures contract is a standardized forward contract.
C) A foreign exchange swap consists of a spot exchange and a forward
foreign exchange.
D) If a company is going to receive foreign currency, it will "short" a
forward currency contract.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Which of the following correctly defines a source of funds
available to international businesses?
A) Export-Import banks provide direct loans to foreign buyers of imports
and intermediary loans.
B) Eurobonds are international bonds denominated in a currency not
native to the country where issued.
C) All of these answers.
D) An international business is permitted to issue some of its shares in
foreign markets.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
Which of the following correctly defines a source of funds
available to international businesses?
A) Export-Import banks provide direct loans to foreign buyers of imports
and intermediary loans.
B) Eurobonds are international bonds denominated in a currency not
native to the country where issued.
C) All of these answers.
D) An international business is permitted to issue some of its shares in
foreign markets.
Free to share, print, make copies and changes. Get yours at www.boundless.com
Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/
Financial Management Outside of the U.S.
Attribution
• Wikipedia. "Spot rate." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Spot_rate
• Wikipedia. "Forward price." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Forward_price
• Wikipedia. "bootstrapping method." CC BY-SA 3.0 http://en.wikipedia.org/wiki/bootstrapping%20method
• Wikipedia. "Countertrade." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Countertrade
• Wikipedia. "Counter trade." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Counter_trade
• Wikipedia. "counter purchase." CC BY-SA 3.0 http://en.wikipedia.org/wiki/counter%20purchase
• Wikipedia. "Switch trading." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Switch%20trading
• Wiktionary. "barter." CC BY-SA 3.0 http://en.wiktionary.org/wiki/barter
• Wikipedia. "Purchasing power parity." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Purchasing_power_parity
• Answers.com. "What is the definition of Global Business Environment." CC BY-SA
http://wiki.answers.com/Q/What_is_the_definition_of_Global_Business_Environment
• Wikipedia. "the law of one price." CC BY-SA 3.0 http://en.wikipedia.org/wiki/the%20law%20of%20one%20price
• Wikipedia. "monetary system." CC BY-SA 3.0 http://en.wikipedia.org/wiki/monetary%20system
• Wikipedia. "competitiveness." CC BY-SA 3.0 http://en.wikipedia.org/wiki/competitiveness
• Answers.com. "What are the long term sources of funds for financing a business." CC BY-SA
http://wiki.answers.com/Q/What_are_the_long_term_sources_of_funds_for_financing_a_business#ixzz2Dbjq3rxY
• Wikipedia. "Export-Import Bank of the United States." CC BY-SA 3.0 http://en.wikipedia.org/wiki/ExportImport_Bank_of_the_United_States
• Wikipedia. "Funding." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Funding
• Wikipedia. "Capital structure." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Capital_structure
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
• Wiktionary. "eurobond." CC BY-SA 3.0 http://en.wiktionary.org/wiki/eurobond
• Wikipedia. "cost of capital." CC BY-SA 3.0 http://en.wikipedia.org/wiki/cost%20of%20capital
• Wikipedia. "debt-to-equity ratio." CC BY-SA 3.0 http://en.wikipedia.org/wiki/debt-to-equity%20ratio
• Wikipedia. "capital structure." CC BY-SA 3.0 http://en.wikipedia.org/wiki/capital%20structure
• U.S. Embassy. "Home | IIP Digital | U.S. Department of State." Public domain http://www.america.gov/st/businessenglish/2008/January/20080109170950AKllennoCcM0.563183.html
• Wikipedia. "Import." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Import
• Wiktionary. "import." CC BY-SA 3.0 http://en.wiktionary.org/wiki/import
• Boundless Learning. "Boundless." CC BY-SA 3.0 http://www.boundless.com//business/definition/comparative-advantage
• Wikipedia. "Export." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Export
• Boundless Learning. "Boundless." CC BY-SA 3.0 http://www.boundless.com//marketing/definition/exporting
• Wiktionary. "import." CC BY-SA 3.0 http://en.wiktionary.org/wiki/import
• Wiktionary. "export." CC BY-SA 3.0 http://en.wiktionary.org/wiki/export
• Wikipedia. "Foreign direct investment." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Foreign_direct_investment
• Wikipedia. "Foreign direct investment." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Foreign%20direct%20investment
• Journalist's Resource. "Politics of foreign direct investment into developing countries Journalist's Resource: Research for
Reporting, from Harvard Shorenstein Center." License: Other http://journalistsresource.org/studies/economics/finance/foreigninvestment-trade/
• Wikipedia. "Joint venture." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Joint_venture
• Wikipedia. "Joint venture." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Joint_venture
• Wiktionary. "joint venture." CC BY-SA 3.0 http://en.wiktionary.org/wiki/joint+venture
• Wikipedia. "economies of scale." CC BY-SA 3.0 http://en.wikipedia.org/wiki/economies%20of%20scale
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
• Wiktionary. "value-chain." CC BY-SA 3.0 http://en.wiktionary.org/wiki/value-chain
• Wikipedia. "economies of scope." CC BY-SA 3.0 http://en.wikipedia.org/wiki/economies%20of%20scope
• Wikipedia. "Multinational corporation." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Multinational_corporation
• Wikipedia. "Futures contract." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Futures_contract
• Wikipedia. "Money market." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Money_market
• Wikipedia. "Forex swap." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Forex_swap
• Wikipedia. "underlying assets." CC BY-SA 3.0 http://en.wikipedia.org/wiki/underlying%20assets
• Wikipedia. "Forward contract." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Forward_contract
• Wikipedia. "Forward exchange rate." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Forward_exchange_rate
• Wikipedia. "Spot exchange rate." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Spot_exchange_rate
• Wiktionary. "margin." CC BY-SA 3.0 http://en.wiktionary.org/wiki/margin
• Wikipedia. "Outsourcing." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Outsourcing
• Wikipedia. "Outsourcing." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Outsourcing
• Wiktionary. "insourcing." CC BY-SA 3.0 http://en.wiktionary.org/wiki/insourcing
• Wiktionary. "offshoring." CC BY-SA 3.0 http://en.wiktionary.org/wiki/offshoring
• Wiktionary. "outsourcing." CC BY-SA 3.0 http://en.wiktionary.org/wiki/outsourcing
• Wikipedia. "Contract manufacturer." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Contract_manufacturer
• Boundless Learning. "Boundless." CC BY-SA 3.0 http://www.boundless.com//business/definition/contract-manufacturing
• Wikipedia. "Contract manufacturing." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Contract_manufacturing
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
• Wikipedia. "Foreign exchange risk." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Foreign_exchange_risk#Translation_exposure
• Wiktionary. "exchange rate." CC BY-SA 3.0 http://en.wiktionary.org/wiki/exchange+rate
• Boundless Learning. "Boundless." CC BY-SA 3.0 http://www.boundless.com//finance/definition/foreign-bond
• Wikipedia. "foreign currency exposures." CC BY-SA 3.0 http://en.wikipedia.org/wiki/foreign%20currency%20exposures
• Wikipedia. "Offshoring." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Offshoring
• U.S. Embassy. "Home | IIP Digital | U.S. Department of State." Public domain http://www.america.gov/st/washfileenglish/2004/September/20040923160531MBzemoG0.2082025.html
• Wiktionary. "captive." CC BY-SA 3.0 http://en.wiktionary.org/wiki/captive
• Wiktionary. "outsourcing." CC BY-SA 3.0 http://en.wiktionary.org/wiki/outsourcing
• Wiktionary. "offshoring." CC BY-SA 3.0 http://en.wiktionary.org/wiki/offshoring
• Wikipedia. "Multinational corporation." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Multinational_corporation
• Foreign Policy in Focus. "Multinationals Use International Tribunals to Overpower Nation-States - FPIF." CC BY 3.0
http://www.fpif.org/blog/multinationals_use_international_tribunals_to_overpower_nation-states
• Boundless Learning. "Boundless." CC BY-SA 3.0 http://www.boundless.com//business/definition/multinational-corporation
• Wikipedia. "International business company." CC BY-SA 3.0 http://en.wikipedia.org/wiki/International_business_company
• Wiktionary. "license." CC BY-SA 3.0 http://en.wiktionary.org/wiki/license#English
• Wikipedia. "Licensing." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Licensing
• Entrepreneur. "Licensing Definition | Small Business Encyclopedia | Entrepreneur.com." License: Other
http://www.entrepreneur.com/encyclopedia/term/82376.html
• Wikipedia. "International business company." CC BY-SA 3.0 http://en.wikipedia.org/wiki/International_business_company
• Wikipedia. "Franchising." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Franchising
• Entrepreneur. "Licensing Definition | Small Business Encyclopedia | Entrepreneur.com." License: Other
http://www.entrepreneur.com/encyclopedia/term/82376.html
Free to share, print, make copies and changes. Get yours at www.boundless.com
Financial Management Outside of the U.S.
• Wiktionary. "franchising." CC BY-SA 3.0 http://en.wiktionary.org/wiki/franchising
• Wiktionary. "franchiser." CC BY-SA 3.0 http://en.wiktionary.org/wiki/franchiser
• Wiktionary. "franchisee." CC BY-SA 3.0 http://en.wiktionary.org/wiki/franchisee
• Wiktionary. "franchise." CC BY-SA 3.0 http://en.wiktionary.org/wiki/franchise
• Wikipedia. "Exchange rate." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Exchange_rate
• Wikipedia. "Interest rate parity." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Interest%20rate%20parity
• Wikipedia. "balance of payment." CC BY-SA 3.0 http://en.wikipedia.org/wiki/balance%20of%20payment
• Wikipedia. "arbitrage." CC BY-SA 3.0 http://en.wikipedia.org/wiki/arbitrage
Free to share, print, make copies and changes. Get yours at www.boundless.com