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Define a foreign company

Updated: 12/13/2022
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12y ago

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Well i can't define it but I can tell you about it. Let's say you had a factory in England that made cars or had them {like BMW something like that} and you turn it into a company but didn't have them placed in different parts of the world, understand? then that would be a "foreign company."

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12y ago
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What is the significance of foreign exchange rate risk and how can this risk be mitigated?

Foreign exchange risk is the level of uncertainty that a company must manage for changes in foreign exchange rates, that will adversely affect the money the company receives for goods and services over a period of time. For example, a company sells goods to a foreign company. They ship the goods today, but will not receive payment for several days, weeks or months. During this grace period, the exchange rates fluctuate. At the time of settlement, when the foreign company pays the domestic company for the goods, the rates may have traveled to a level that is less than what the company contemplated. As a result, the company may suffer a loss or the profits may erode.


Define foreign exchange?

Foregn Exchange is the terms that use in converting one currency to other currency with in a floor or counter permited by authority of Government Agencies.


What factors determine the demand for a foreign currency?

The demand for a foreign currency is based on how many buyers are in the market. Generally speaking, when a corporation seeks to buy products from another company in a foreign country, that corporation will need to make the purchase in the currency of the aforementioned company. Usually their bank will enter the foreign exchange market on behalf of their client and buy the currency required. The greater the demand for that currency, the higher its price.


The inability of a company to gain foreign production factors to use in its domestic operations may?

Stimulate the company to adopt efficient substitute methods of production


What allows another firm to produce and sell a company's product abroad?

foreign license agreement

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Foreign direct investment is the provision of capital into a company or project by a financier who is from a foreign country. In portfolio investment, anyone can invest in the portfolio, whether or not he is from a local company or a foreign company.


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