The major entity proposing international standards of accounting, consisting of 14 members where 75% must agree, is the _____ International Accounting Standards Board (IASB) Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) Financial Accounting Standards Board (FASB)

International Accounting Standards Board (IASB)

Standards developed by the IASB for reporting company financial results, followed by over one hundred nations, are called _____ International Accounting Standards (IAS) Financial Reporting Standards (FRS) Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS)

International Financial Reporting Standards (IFRS)

Standards developed by the U.S. FASB for reporting company financial results, mandatory for U.S. companies, are known as _____ International Accounting Standards (IAS) Financial Reporting Standards (FRS) International Financial Reporting Standards (IFRS) Generally Accepted Accounting Principles (GAAP)

Generally Accepted Accounting Principles (GAAP)

Comprehensive Guide to International Finance and Business Practices

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Finance - Personal Finance

michael1tekrzp Created by 10 mon ago

Cards in this deck(99)

The value-added tax and the goods-and-services tax are examples of _____ taxes that are passed on to buyers.

A system of rules and principles that prescribe the format and content of financial statements is known as _____ standards.

The major entity proposing international standards of accounting, consisting of 14 members where 75% must agree, is the _____

Standards developed by the IASB for reporting company financial results, followed by over one hundred nations, are called _____

Standards developed by the U.S. FASB for reporting company financial results, mandatory for U.S. companies, are known as _____

Reasons for adopting one accounting standard internationally include increased comparability, reduced costs, and improved _____ of financial reports.

A single financial statement that brings together all the financial statements of a parent company and its subsidiaries is called a _____ financial statement.

Using financial instruments to reduce adverse price movements by taking an offsetting position is known as _____.

An agreement in which a firm agrees to pay a specific rate at the beginning of the contract for delivery at a future date is called a _____ contract.

A method of foreign currency translation where items in the subsidiaries' financial statements are translated at the current exchange rate is the _____ method.

A method of foreign currency translation using exchange rates based on the rate at which the assets and liabilities were originally acquired is the _____ method.

The price one subsidiary charges another for a product or service supplied is known as the _____ price.

The rate at which two parties agree to exchange currency and execute a deal at some specific point in the future is called the _____ exchange rate.

A company-generated forecast of future spot exchange rates is referred to as the _____ forward rate.

The exchange rate for trades that take place immediately is known as the _____ exchange rate.

The ways in which a multinational firm's assets are financed, including short-term borrowing and long-term debt and equity, is called the _____ structure.

Seeking capital from foreign sources is known as _____ financing.

Investing capital in foreign markets is referred to as _____ investment.

Raising capital by selling shares of stock is known as _____ financing.

The organized trading of securities through exchanges is referred to as the _____ market.

All the stock exchanges worldwide where firms can buy and sell stock for financing an investment are part of the _____ equity market.

Raising capital by borrowing money and agreeing to repay the entire amount plus agreed-on interest at a specific date is known as _____ financing.

A financial arrangement that lets the customer defer payment on goods or services for a specified period is called _____ credit.

Subsidiaries can finance their operations through external sources such as overseas equity markets and overseas _____ markets.

The process of financing long-term outlays such as plant expansion or research and development is known as _____ budgeting.

The role that the government plays in terms of international business and finance includes passing laws, setting policies, and providing _____

Legal issues multinational companies may face include violations in contract law, bankruptcy law, and _____ property rights.

A centralized financial organization structure pools funds and leverages the benefits of scale for investment and _____

In a decentralized financial organization structure, subsidiaries make financing decisions for their region, taking advantage of local _____

Islamic law, in terms of finance, prohibits charging _____ on money and other common business activities.

Multinational firms often organize as separate legal entities in different countries to gain advantages such as limiting _____

Some of the largest stock exchanges in the world include the NYSE, NASDAQ, and the _____ Stock Exchange.

The rate of return an organization could generate if they had made a different investment of equivalent risk is known as the _____ of capital.

Short-term borrowing as well as long-term debt and equity are part of the _____ structure of a global company.

With foreign-currency translation, using exchange rates based on the rate when the assets were originally acquired is the _____ method. Using the currency of the parent corporation and basing it on when the statements are prepared is the _____ method.

For a subsidiary to purchase goods with a _____, they can defer payment for a set period of time and save transaction fees.

Rapid changes in commodity prices or a major nation defaulting on its debt is an example of something for which a multinational corporation should have a _____ plan.

In 2022, an example of how the operating conditions for global business can be drastically changed was the _____ of Ukraine.

A centralized depository offers two main advantages: each division doesn't have to keep reserved cash for emergencies, and since money is combined, firms can earn a higher _____ rate.

As an alternative to interest rates in Islamic countries, banks may charge _____ rates on the assets being used or apply a profit and loss sharing strategy called _____

Owned by the same parent company, a subsidiary charges another subsidiary for a product ordered; this is called _____ pricing.

Advantages of a decentralized financial organization structure include addressing differences in local culture and religion, using local knowledge, and adapting to _____ laws and regulations.

Reducing costs on cross-border payments between subsidiaries of three or more is achieved through _____ netting.

In countries where Islam is the official religion, financial transactions are impacted by Islamic finance laws, prohibiting gharar, or uncertainty, and charging _____

Consolidated financial statements must reconcile investment accounts, liabilities, and _____

In Great Britain and the U.S., _____ provide much of the capital to companies, while in Europe and Japan, _____ are more commonly the source of funding.

Which of these countries adheres to neither the GAAP nor the IFRS standards?

Considerations a company takes during the capital-budgeting process include cash flow the project will generate, initial investment required, and _____ of capital.

A global corporation will seek capital from foreign sources, using _____ financing, and move capital to foreign markets as _____ investment.

In the United States, the Securities and Exchange Commission has allowed foreign private issuers to use financial statements prepared using _____ since 2008.

Based on market capitalization, the Shanghai Stock Exchange is the _____ largest in the world.

A country like _____ that offers corporations very low income tax rates is called a _____

Companies embark on expansion to improve cost-effectiveness, expand into new markets, and follow _____ customers.

Analyzing foreign markets for potential size, accessibility, cost of operations, and buyer needs is part of _____ market due diligence.

An international market analysis should include regional differences, understanding local consumers, and _____ dynamics.

The PESTEL Analysis considers political, economic, sociocultural, technological, environmental, and _____ contexts.

Contracting with a third party to do some of a company's work on its behalf is known as _____.

Taking some business function out of the company's country of origin to be performed in another country is called _____.

The term for both outsourcing and offshoring work or outsourcing to a nondomestic third party is _____ outsourcing.

The CAGE framework, developed by Pankaj Ghemawat, analyzes country differences along the dimensions of culture, administration, geography, and _____.

The absence of key specialized intermediaries found in the markets of finance, managerial talent, and products is referred to as institutional _____.

Three strategies for handling institutional voids include adapting the business model, changing the institutional context, or staying _____.

A strategic management tool that helps an organization take stock of its internal characteristics and external conditions is known as _____ Analysis.

The process of analyzing possible future events by considering alternative possible outcomes is called _____ Planning.

Steps of Scenario Planning include choosing the target issue, brainstorming key drivers, and defining dimensions of greatest _____.

In the context of scenario planning, forces for change whose direction and timing can be predicted are called _____.

In the context of scenario planning, forces for change whose direction and timing is largely unknown are called _____.

Any action taken by an entity that has the objective to attack, snoop, cause harm, or sow fear on targets is known as _____.

The body of technologies, processes, and practices designed to protect networks, devices, programs, and data from attack is called _____.

India has experienced growth providing corporations with non-primary services, referred to as _____, when a service is delegated to an external provider.

Firms based in _____ have since 2001 become major global companies.

Categories to review as globalization factors include governments, competition, markets, and _____.

When analyzing markets, which of these would be considered soft criteria for evaluating international expansion?

Once the overall market due diligence is assessed for a new country, the next step is to analyze _____ differences.

What hidden costs may a business experience after a cyberattack? These include negative reputation, higher insurance, and more expensive _____ fees.

When markets are very similar in different regions, it makes sense to _____ that industry.

One of the common tools to evaluate a company's external environment in regards to foreign markets is _____.

In a(n) _____ attack, many organizations globally can be impacted at the same time before the cyberterrorism is identified.

The adherence to criteria related to business contracts is _____; how the current capabilities and resources align to the new market is _____

The GCI is the Global _____ Index, measuring the international flows of trade, and in 2020, _____ was listed as one of the top five countries on the list.

Three key reasons that a business would seek to do international expansion are to open up new markets, make current operations more cost-effective, and retain _____ already operating in that market.

Future growth and customer needs would be considered _____ criteria when evaluating international expansion.

Some of the biggest perpetrators of cyberterrorism are which of these countries?

The most common and easiest way to enter an international market is through _____, which offers fast entry and low risk.

Involves the granting of permission by the licenser to the licensee to use intellectual property rights under defined conditions is known as _____.

A contractual agreement between two or more enterprises to cooperate for a common purpose is called _____.

A firm gains control of another firm by purchasing some or all of its stock, exchanging stock, or paying the owners a purchase price in a _____

Involves the establishment of a new, wholly owned subsidiary, known as a _____ venture.

Small firms likely begin with an _____ strategy when entering international markets.

Large firms begin with an _____ plan when entering international markets.

The history of importing and exporting dates back to the _____ Empire and the Silk Road.

Export intermediaries who represent the company in the foreign market are known as _____.

An independent company that performs for a fee or commission the duties a firm's own export department would execute is called an _____ management company.

What are the risks of exporting? These include the distributor switching to a cheaper supplier, local production taking the market, and perceived lack of _____

Factors to consider when choosing an entry mode include cultural differences, quality of local contacts, and _____ issues.

Companies trade goods and services for other goods and services, with little or no money involved, in a practice known as _____.

Companies countertrade to adhere to government mandates, mitigate price movement risks, and repatriate _____.

The direct exchange of one good for another, with no money involved, is called _____.

In a counterpurchase, the seller receives cash contingent on the seller buying local products or services in the amount of (or a percentage of) the _____.

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Comprehensive Guide to International Finance and Business Practices

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