Global Financial Management (HSC SSCE Business Studies): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Global financial management
Global financial management
Strategies to handle financial risks in international operations
Foreign exchange market (forex)
Foreign exchange market (forex)
Market that establishes the price of one currency vs another
Currency appreciation
Currency appreciation
When a currency's value rises against another currency
Effect of appreciation on exports
Effect of appreciation on exports
Exports become more expensive and less competitive internationally
Currency depreciation
Currency depreciation
When a currency's value falls against another currency
Effect of depreciation on exports
Effect of depreciation on exports
Exports become cheaper and more competitive internationally
Least risky payment method for exporters
Least risky payment method for exporters
Payment in advance
Most risky payment method for exporters
Most risky payment method for exporters
Clean payment (open account payment)
Hedging
Hedging
Minimising currency fluctuation risks in international transactions
Derivatives
Derivatives
Financial instruments used to reduce currency fluctuation risks