lesson 3 Flashcards
refers to how easily two or more markets can trade with each other
It occurs when prices among different locations or related goods follow similar patterns over a long period of time
Market integration
This is a condition in which different countries trend
together and depict same expected risk adjusted returns.
Two markets are
perfectly integrated if investors can pass from one market to another without paying any extra costs and if there are possibilities of arbitration which
ensures the equivalence of stock prices on both markets
Stock Market Integration
It is an open market economy between countries facilitated by a common currency and the elimination of technical, regulatory and tax differences to encourage free flow of capital and investment across borders
Financial Market Integration
a business that operates in two or more countries. It also goes by the name “multinational company”
global corporation
A group’s tax bill can be reduced by the CFO like borrowing in countries with high tax rates and lending to operations in countries with lower rates.
Financing
Global firms can offset natural currency exposures through worldwide operations instead of managing currency exposures through financial markets.
Risk Management
Getting smarter on valuing investment opportunities CFOs can add value.
Capital budgeting
was of corporate origin. It is a major driver of extended global corporate development. It is an investment made by a company or individual in one country in business interests in another country
Foreign Direct Investment (FDI)
refer to the idea that China and
India will, by 2050, become the world’s dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials.
Brazil, Russia, India and China (BRIC)
the first multilateral agreement covering trade in services which was negotiated during the last round of multilateral trade negotiations, called the Uruguay Round, and came into force in 1995.
The General Agreement on Trade in Services (GATS
