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Non Market Based Transfer Prices
Management of Working Capitals
Financial Issues in International Business
Minimizing Foreign Exchange Risk
Bonus
100
What are countries that impose little or no corporate income taxes?
Tax Havens
100
This is created when an international firm matches its assets denominated in a given currency with its liabilities denominated in the same currency
Balance sheet hedge
100
What is documentary collection?
Where commercial banks serve as agents to facilitate the payment process
100
What is a transfer Price
The Price paid for goods and services involved in Intracorporate transactions
100
How long is the Macy's Thanksgiving Day parade?
2.5 Miles
200
What is ut called when two firms attempt to determine the price that two unrelated firms operating would have to agree on
Arms Length Test
200
This is the approach firms can use to address the problem of economic exposure
Operational Hedge
200
Name one of the two ways Bill of lading plays an important role in Documentary Collection
1.) Serves as a contract between the exporter and carrier 2.) As a title to the goods and Services
200
What are the 3 internal capital budgeting evaluation techniques?
NPV, IRR, Payback Period
200
Name 2 of the 6 NFL teams playing on thanksgiving day.
Minnesota Vikings Detroit Lions Washington Redskins Dallas Cowboys Pittsburgh Steelers Indianapolis Colts
300
Income generated by traditional businesses operations such as production, marketing and distribution is?
Active Income
300
This is when two Subsidiaries net out their mutual invoices
Bilateral Netting
300
What is Factoring?
When firms buy foreign accounts receivable at a discount from face value price
300
What is a hurdle rate
Minimum rate of return a company finds acceptable for new projects
300
What is the average weight of a turkey bought for Thanksgiving?
15 lbs
400
A negotiation used to fix uncertainty of resolution of complex transfer pricing
Advance Pricing Agreement
400
This is a technique used to minimize company wide cash holdings
Centralized Cash Management
400
What are the 3 Licenses/Certificates mentioned in this chapter?
1.) Export Licenses 2.) Certificates of Product 3.) Inspection Certificates
400
Describe the leads and lags Strategy (pg 517-519)
Companies increase ther net holdings of currencies expected to rise in value and decrease their net holdings in currency expected to decrease in value
400
When was the first Thanksgiving?
November 1621
500
What is a foreign corporation in which US shareholders together own a major of its stocks
Controlled foreign corporation
500
This is a way to cut currency conversion costs among three or more businesses
Multilateral Netting
500
What is the difference between an Advised Letter of Credit and a Confirmed Letter of Credit?
Confirmed Letter has the Exporters Bank guarantee payment while Advised Letter advises the Exporter of the terms.
500
What are the two types of Transfer Prices
1.) Market Based 2.) Non-Market Based
500
What country had the worst change in currency?
Brazil