Finance in International Business

Question 1

Foreign Exchange Rates

Answer 1

The rate at which one currency can be exchanged for another.

Question 2

Currency Risk Management

Answer 2

Strategies to mitigate the impact of exchange rate fluctuations on financial performance.

Question 3

International Capital Budgeting

Answer 3

Evaluating and making investment decisions across borders, considering factors like exchange rates, political risk, and differing market conditions.

Question 4

International Trade Finance

Answer 4

Financing methods used in international trade transactions, including letters of credit, trade credit insurance, and export financing.

Question 5

Transfer Pricing

Answer 5

The pricing of goods and services within a multinational company, often for tax purposes.

Question 6

Political and Country Risk

Answer 6

The risk associated with political instability, changes in government policies, and other country-specific factors that may affect business operations.

Question 7

Global Cash Management

Answer 7

Efficiently managing cash flows, liquidity, and working capital across multiple countries.