Unit 10

posure is typically defined as the extent to which the income from individual transactions is affected by fluctuations in foreign exchange values. Such exposure associates with a contractual payment of foreign currency, and includes obligations for the purchase or sale of goods and services at previously agreed prices and the borrowing or lending of funds in foreign currencies. • Translation exposure is the impact of currency exchange rate changes on the reported consolidated results and balance sheet of a company.
This risk arises from the legal requirement that all firms consolidate their financial statements (balance sheet and income statements) of all worldwide operations annually. • Economic exposure is the extent to which a firm’s future international earning power is affected by changes in exchange rates. Economic exposure is concerned with the long-run effect of changes in exchange rates on future prices, sales and costs. This is distinct from transaction exposure, which is concerned with the effect of
Sentence Patterns
1.大多数国际企业要求公司内部所有的预算和 大多数国际企业要求公司内部所有的预算和 业绩数据都以“公司货币”来表述， 业绩数据都以“公司货币”来表述，所谓公 司货币是指其母国货币。 司货币是指其母国货币。 Most international businesses require all budgets and performance data within the firm to be expressed in the “corporate currency”, which is normally the home currency.
working capital turnover 运营资金周转 working capital reserve 营运资金准备 7. hedge: a securities transaction that reduces the risk on an existing investment position; to minimize or protect against the loss of by counterbalancing one transaction, such as a bet, against another; to take compensatory measures so as to counterbalance possible loss. buying hedge 买期货以保值 selling hedge 卖期保值 A hedge between keeps friendship green.
12.equity capital:投资于新企业的资本 (资本 净值 投资于新企业的资本; 资本)净值 投资于新企业的资本 资本 equity capital transaction 股本转让 产权资本转让 股本转让, 13.speculation: engagement in risky business transactions on the chance of quick or considerable profit monetary speculation 金融投机 speculating transaction 投机交易 买卖 投机交易[买卖 买卖] Speculation is a dangerous way of trying to make fortune. 14. derivative deposit 派生存款 derivative income 派生收入 derivative money 派生货币
8.swap: to exchange (one thing) for another; to trade one thing for another currency swap: systems whereby an institution with funds in one currency converts them into another and enters into a forward exchange contract(外汇期货合同） to recover the currency 外汇期货合同） 外汇期货合同 borrowed. 货币交换，货币掉期，货币套换 货币交换，货币掉期， swap experiences stock swap 9.liability: the state of being liable; the financial obligations entered in the balance sheet of a business enterprise liability account 负债帐户 表] 负债帐户[表 assets and liabilities 资产和负债
2. payroll: the total sum of money to be paid out to employees at a given time; a list of employees receiving wages or salaries, with the amounts due to each payroll payment 发薪 payroll sheet发放工资表 发放工资表;paysheet<英>工资表 发放工资表 英 工资表 increase the weekly payroll be on [off] the payroll 已被雇佣 解雇 已被雇佣[解雇 解雇] 3. debt service: 还本付息 偿债 还本付息, debt ceiling 债务最高限额 debt capital 借入资本 Debts of blood must be paid in blood.
Unit 10 International Financial Management
Professional Terms
1.Spot rate: the rate for purchase or sale of a commodity for immediate delivery. 现汇汇率，即期汇率，现货汇率， 现汇汇率，即期汇率，现货汇率，即期汇价 Spot exchange rate: the price of one currency expressed in terms of another currency at a given moment in time. 即期外汇汇率， 即期外汇汇率，即期汇率 Spot market spot operations Spot price spot trading
Relevant Knowledge
When we speak of foreign exchange exposure, we are referring to the risk that future changes in a country’s exchange rate will hurt the firm. Changes in foreign exchange values often affect the profitability of international trade and investment deals. Foreign exchange exposure is normally classified into three categories: transaction exposure, translation exposure, and economic exposure.
4.future: business commodities or stocks bought or sold upon agreement of delivery in time to come future purchase future sale future prices 预估价 deal in futures 作期货交易 5.option: a right to buy or sell specific securities or commodities at a stated price within a specified time option market 期货买卖 6.working capital: the assets of a business that can be applied to its operation; The amount of current assets that exceeds current liabilities
10. account payable: 应付款 account receivable 应收款 account payable/ receivable interline (同行业单位 同行业单位 之间的)应付 应付/收帐款 之间的 应付 收帐款 11. inventory: a detailed, itemized list, report, or record of things in one's possession, especially a periodic survey of all goods and materials in stock; the items listed in such a report or record inventory adjustment 盘存 存货 调整 盘存[存货 存货]调整 inventory audit 存货审查 annual inventory of fixed assets Some stores inventory their stock once a month. 有些商店每月盘货一次。 有些商店每月盘货一次。