American Depository Receipt (ADR)

A security issued in the United States representing shares of a foreign stock and allowing that stock to be traded in the United States.


The implicit exchange rate between two currencies (usually non-U.S.) quoted in some third currency (usually the U.S. dollar).


International bonds issued in multiple countries but denominated in a single currency (usually the issuer's currency).


Money deposited in a financial center outside of the country whose currency is involved.

foreign bonds

International bonds issued in a single country, usually denominated in that country's currency.

We won't have much to say here about the role of cultural and social differences in international business. Neither will we be discussing the implications of differing political and economic systems. These factors are of great importance to international businesses, but it would take another book to do them justice. Consequently, we will focus only on some purely financial considerations in international finance and some key aspects of foreign exchange markets.

0 0

Post a comment