Accounting Chap 15 Terms

Front 1

cross-border financing

Back 1

Occurs when a company sells its securities in the capital markets of another country.

Front 2

exchange rate

Back 2

the amount it costs to purchase on unit of currency with another currency

Front 3

exporting

Back 3

selling a good or service to a foreign customer in a foreign country

Front 4

foreign trade zones

Back 4

goods imported into these designated US areas are duty free until they leave the zone

Front 5

future contracts

Back 5

a contract given the right to receive a specified quantity of foreign currency at a future date

Front 6

globalization

Back 6

occurs as managers become aware of and engage in cross border trade and operations

Front 7

global sourcing

Back 7

the close coordination of R&D, manufacturing, and marketing across national boundaries

Front 8

harmonization of accounting standards

Back 8

the standardization of accounting methods and principles used in different counntries throughout the world

Front 9

hedging

Back 9

the practice of minimizing or eliminating risk of loss associated with foreign currency fluctuations

Front 10

international joint venture

Back 10

a company owned by two or more companies from different countries

Front 11

international licencing

Back 11

a contractual agreement between a company and a foreign party allowing the use of trade marks, patents, technology, designs, processes, intellectual property, or other proprietary advantage

Front 12

market economies

Back 12

exist when ownership of land and the means of production are private and markets dictate the allocation of resources and the output among segments of the economy

Front 13

wholly owned international subsidiary

Back 13

created through a company's foreign direct investment; using domestically generated funds in another country to purchase 100 percent equity control of a foreign subsidiary