| A | B |
|---|
| Internal Bank | multinat'l firm's financial mgmt tool that acts as bank to coordinate finances among units |
| Transaction Exposure | potential for losses/gains when firm engages in transaction denominated in foreign currency |
| Natural Hedging | structuring of firm's ops so that cash flows by currency, inflows against outflows, are matched |
| Contractual Hedging | multinat'l firm's use of contracts to minimize transaction exposure |
| Economic Exposure | potential for LT effect on firm's value as result of changing currency values |
| Translation Exposure | potential effect on firm's financial stmts of change in currency values |
| Accounting Diversity | range of differences in nat'l accounting practices |
| Direct Taxes | applied directly to income |
| Indirect Taxes | applied to non-income items (VAT, Excise taxes, tariffs) |
| Value-Added Taxes (VAT) | tax on value added at each stage of production and distribution process (European countries, Lat Am) |
| Letter of Credit (L/C) | undertaking by bank to make pmt to seller upon completion of set of agreed-on conditions |
| Bill of Lading | contract btw exporter and carrier indicating that carrier has accepted responsibility for goods and will provide transportation in return for pmt |
| Bank Draft | financial withdrawal doc drawn against a bank |
| Trade Draft | financial withdrawal doc drawn against a company |
