WGU C214 Short & Simple Concepts List - Ch. 16 Global Financial Manage ment Question and answers 100% correct 2025/2026

WGU C214 Short & Simple Concepts List - Ch. 16 Global
Financial Manage ment Question and answers 100% correct
2025/2026

1. Hedging -The process of eliminating risk

2. Tariffs -Additional taxes levied on goods imported
-i.e. Additional taxes on Toyota cars
-Toyota becomes more expensive, people start buying US
made cars like Chevy & Ford
-GM, Ford will continue to produce, while Toyota will lose
money
-This is how the Govt protects local or domestic economy

3. Outsourcing -To produce a product or service outside of the domestic
country
-i.e. move to China or Mexico
1. Employment goes down
2. Company profit likely to go up because of cheap
labor in other countries
3. Prices of product is decreased

4. Foreign Exchange Risk -Risk associated with the changing value of countries
(FX Risk)
currencies

5. Currency Forward -A derivative that locks in the exchange rate of a currency in
the
future

6. Eurobonds -Bonds issued in non-US countries by US firms and
denominated in dollars

7. International Financial -Force the same set of accounting standards across countries
Re-porting Standards
(IFRS) -US is not part of it yet (want to bring GAAP and IASB to
start using IFRS)


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