89.
When firms issue stock to raise capital, they
90.
Issuing stocks in foreign markets
91.
Another source of funding for the small firm is venture capital (VC),
92.
Sanctions by the West on Russia may
93.
ADRs function to
94.
Who developed ADRs and where?
95.
Many countries control foreign ownership of equity, usually in sensitive sectors. They
include
96.
What is the major reason countries control foreign ownership of businesses?
97.
The inclination with debt financing is to
98.
An additional source for debt financing is
99.
The rule of thumb on capital structure choices is that
100.
National policies such as these influence the capital structure of the firm—
101.
It is not uncommon for an international firm (General Electric or Nestlé) to operate in
102.
Transfer pricing is a method of moving funds that represents intrafirm sales, which
actually make up what percentage of world trade?
103.
Transfer pricing is a way to move funds
104.
A fronting loan can be used by the parent company when the
105.
How do fronting loans work?
Fill in the Blank Questions
106.
________________ is pricing that is established for transfers between members of the
enterprise.
107.
In some firms, the finance operation has been centralized and works a bit like a company
_____________.
108.
____________ is holding assets in one market to offset price changes to exposure in
another market.
109.
_____________ is a process in which subsidiaries transfer intracompany cash flows through
a central clearing center.
110.
Collecting receivables early when currencies are expected to weaken is an example of
___________.
111.
Collecting receivables late when a currency is expected to strengthen is an example of
_________.
112.
The three kinds of FX exposure are translation, transaction, and __________.
113.
____________ exposure occurs when there is a time lag between when a transaction takes
place in a foreign currency and when payment is made.
114.
Exposure netting is a process parallel to ____________ but with exposed positions in
foreign currencies.
115.
In a _______________, the company sells forward its foreign currency receivables for its
home currency, matching the forward date with the due date of the receivable.
116.
In a foreign currency __________, the contract can be executed or not, depending on
whether the market works for or against you.
117.
___________ contacts are agreements to exchange currencies at specified times and rates.
118.
When a subsidiary’s financial statements are consolidated, ____________ exposure occurs.
119.
Exposure at the operations level caused by FX changes on projected cash flows is known
as ____________ exposure.
120.
A direct tax levied on earnings is _______ tax.
121.
________ tax is an indirect tax levied on added value to the product.