Describe the Informal Controls That an International Company Can Use

question 8

Essay

Describe the informal controls that an international company can use.

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Definitions:

Bonds

Financial securities that represent loans made by investors to issuers, typically governments or corporations, which promise to pay back the principal along with interest on specific dates.

Money Supply

The money supply refers to the total amount of monetary assets available in an economy at a specific time, including cash and deposits.

Leverage Ratio

A leverage ratio is a financial metric used to measure the level of debt used by a business in relation to its equity or assets, indicating the financial health and risk of the entity.

Reserve Requirement

The minimum amount of reserves that a bank must hold against its deposits as mandated by central banking regulations, affecting the bank's capacity to lend.