Rules used to determine in what country a good will be considered as actually made for tariff and other trade purposes.

Endorsement transferring title or right to a named party.

An increase in a currency value relative to other currencies in a fixed exchange rate system.

Retained earnings divided by net income.

A strategic alliance in which two companies agree to comarket each other’s products in their home market. Production rights may or may not be transferred.

The excess return on the risky asset that is the difference between expected return on risky assets and the return of risk-free assets.

"The right of a patent holder of a patent issued in one country to intellectual property rights in a foreign market for one year, without filing for a local patent, even if someone from the foreign market files a local patent for the same process or conce

Seeking stability rather than risk.

The CAPM holds by construction when performance is measured against a mean-variance efficient index. Otherwise, it holds not at all.

Always keep track of your currency units.

An agreement defining each party’s rights should one party default on its obligation. Rights of set-off were common in parallel loan arrangements.

A change in the purchasing power of a currency.

The price below (above) which a seller (purchaser) is unwilling to go.

The value of an asset at the conclusion of a lease.

A measure of the nominal exchange rate that has been adjusted for inflation differentials since an arbitrarily defined base period.

An option or option-like feature embedded in a real investment opportunity.

Interest rate expressed in terms of real goods; that is, the nominal interest rate minus the expected inflation rate.

The act of remitting cash flows from a foreign affiliate to the parent firm.

A graph with the value of an underlying asset on the x-axis and the value of a position exposed to risk in the underlying asset on the y-axis. Also used with changes in value. (Contrast with payoff profile.)

A process in which instantaneous changes in exchange rates are normally distributed with a zero mean and constant variance.

Net income after interest and taxes divided by average common stockholder's equity.

An offshore financial affiliate that is used to channel funds to and from the multinational’s foreign operations.

In the United States, a statement filed with the Securities and Exchange Commission on securities issues that discloses relevant information to the public.

A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given.

Bonds for which each issuer maintains a record of the owners of its bonds. Countries requiring that bonds be issued in registered form include the United States and Japan. (Contrast with bearer bonds.)

Payment made for the use of a person or business’s property based on an agreed percentage of the income arising from its use.

Banks that are owned and operated by member nations; they are deisgned to extend development loans and provide other assistance to member nations. The world's four regional development banks are the African Development Bank Group, the Asian Development Ba

Always think of buying and selling the currency in the denominator of a foreign exchange quote.

The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse.

The percent of the variation in a dependent variable (a y-variable) that is “explained by” variation in an independent variable (an x-variable).