Follow Us

International Finance Course - Chapter 1 International Financial Environment



Term

Explanation

Euro currencies

欧元货币

Why has Eurocurrency become more valuable?

·      The long term continues investment on military of US cause large amount of dollars flow out to foreign country.

·       Major currency that uses of most country.

·   Eurocurrency market is a major source of short-term bank loans.

·     The eurocurrency market is relatively free from governmental regulation and interference.

·         Large scale of funds available

·         Higher deposit interest rate, lower loan rate   

·  Flexible fund scheduling, simple procedure, and higher competitiveness.

Difference between Domestic and international financial management?

·         Culture and history

·         Policy and regulation

·      International receive affect by many types of law, domestic only receive affect by only law from domestic country.

·         Political risk

·         Financial theory and applications

·         Currency exposure

International (affect by exchange rate), domestic does not receive effect.

·         Tax and interest environment

·         Standard of reporting

International (GAAP and AS), domestic don’t need to maintain specific book

Difference type of seekers

不同类型的搜索者

·         Raw material Seekers 原材料寻求者

·         Production efficiency Seekers生产效率寻求者

·         Market Seekers市场开拓者

·         Knowledge Seekers知识寻求者

·         Political safety Seekers政治安全寻求者

Spot and Forward rate

即期和远期汇率

Forward Rate远期利率

Interest rate that uses in a financial transaction in the future.

 

Spot Rate即期汇率

Interest rate that uses in current day or within two days of the transaction.

 

Forward Premium远期升水

Refer to the situation while the future price is higher than the spot price, which is to measures the gap between the spot and forward rate.

Formula (((spot-forward/forward) *(360/days)) *100

 

Forward Discount 远期贴水

Refer to the situation while the future price is lower than the spot price.

 

 


More Info:

What is Pearson’s uncertainty map是什么?Explaination and define
https://spotthewrld.blogspot.com/2021/06/what-is-pearsons-uncertainty.html
Describe any FOUR (4) factors that cause a shift in the demand curve
advantages of supply chain for the dabbawalas
Explain the characteristics of learning organisations with examples?
Evaluate what strategies are effective for creating a cooperative and active training environment?
https://spotthewrld.blogspot.com/2021/07/evaluate-what-strategies-are-effective.html
Roles that leaders need to establish to cultivate a fun and effective working environment.

  

0 comments: