Exam 17: Financial Management

Paying a debt early to take advantage of exchange rates is called ________.

A contract between an exporter and a carrier indicating that the carrier has accepted responsibility for the goods and will provide transportation in return for payment is called a(n)________.

________arise from the firm's everyday business activities.

________ exposure is the most commonly observed type of exchange rate risk.

International business most often occurs between two parties that know each other particularly well.

Firms have,in varying degrees,three types of foreign currency exposure:

Taxes applied to the payment of dividends,interest,or royalties by firms are called ________.

A contract between an exporter and a carrier indicating that the carrier has accepted responsibility for the goods and will provide transportation in return for payment is called a(n)________.

________ is used by multinational firms to centralize individual units' cash flows,resulting in less spending or foregone interest unnecessary cash balances.

Value-added taxes,excise taxes,and tariffs are forms of direct taxes.

Countertrade is a sale that encompasses more than an exchange of goods,services,or ideas for money.

A multinational firm's use of contracts to minimize its transaction exposure is referred to as ________.

The potential for currency losses or gains during the time when a firm completes a transaction denominated in a foreign currency is referred to as ________.

________ is the management of cash balances owned by the firm held by banking and other financial institutions.

The ________ of the firm dictates how cash flows and financial resources can be managed.

A multinational firm's use of contracts to minimize its transaction exposure is known as natural hedging.

The structuring of a firm's operations so that cash inflows and outflows by currency are matched is called ________.

________ refers to cash flow coordination between a corporation's global units so that only one smaller cash transfer must be made.

What is the primary goal of the firm in the Anglo-American market? How is that different from the Continental Europe and Japanese markets?

Brazil's government will apply a tax on Brazilian stocks traded as American depository receipts (ADRs)in an effort to stem the rapid flow of capital into Brazilian securities.