 |     |
|
| |
| | A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | R | S | T | U | V | W | Z | |
 |
|
F factor endowments A country's endowment with resources such as land, labor, and capital. factors of production Inputs into the productive process of a firm, including labor, management, land, capital, and technological know-how. Financial Accounting Standards Board (FASB) The body that writes the generally accepted accounting principles by which the financial statements of US firms must be prepared. financial structure Mix of debt and equity used to finance a business. first-mover advantages Advantages accruing to the first to enter a market. first-mover disadvantages Disadvantages associated with entering a foreign market before other international businesses. Fisher Effect Nominal interest rates (i) in each country equal the required real rate of interest (r) and the expected rate of inflation over the period of time for which the funds are to be lent (I). That is, i = r + I. fixed exchange rates A system under which the exchange rate for converting one currency into another is fixed. fixed-rate bond Offers a fixed set of cash payoffs each year until maturity, when the investor also receives the face value of the bond in cash. flexible machine cells Flexible manufacturing technology in which a grouping of various machine types, a common materials handler, and a centralized cell controller produce a family of products. flexible manufacturing technologies Manufacturing technologies designed to improve job scheduling, reduce setup time, and improve quality control. floating exchange rates A system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply and demand. flow of foreign direct investment The amount of foreign direct investment undertaken over a given time period (normally one year). folkways Routine conventions of everyday life. foreign bonds Bonds sold outside the borrower's country and denominated in the currency of the country in which they are issued. Foreign Corrupt Practices Act US law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions. foreign debt crisis Situation in which a country cannot service its foreign debt obligations, whether private-sector or government debt. foreign direct investment (FDI) Direct investment in business operations in a foreign country. foreign exchange exposure The risk that future changes in a country's exchange rate will hurt the firm. foreign exchange market A market for converting the currency of one country into that of another country. foreign exchange risk The risk that changes in exchange rates will hurt the profitability of a business deal. foreign portfolio investment (FPI) Investments by individuals, firms, or public bodies (e.g., national and local governments) in foreign financial instruments (e.g., government bonds, foreign stocks). forward exchange When two parties agree to exchange currency and execute a deal at some specific date in the future. forward exchange rate The exchange rates governing forward exchange transactions. franchising A specialized form of licensing in which the franchiser sells intangible property to the franchisee and insists on rules to conduct the business. free trade The absence of barriers to the free flow of goods and services between countries. free trade area A group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies. freely convertible currency A country's currency is freely convertible when the government of that country allows both residents and nonresidents to purchase unlimited amounts of foreign currency with the domestic currency. fronting loans A loan between a parent company and a foreign subsidiary that is channeled through a financial intermediary. fundamental analysis Draws on economic theory to construct sophisticated econometric models for predicting exchange rate movements. |
MHHE Home | About MHHE | Help Desk | Legal Policies and Info | Order Info | What's New | Get Involved
