Listed Below Are Nine Global Business Terms Introduced in This

question 13

Essay

Listed below are nine global business terms introduced in this chapter:
Each of the following statements may (or may not) describe one of these terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
a. The strategy of creating offsetting positions so that losses from currency fluctuations will be offset by gains resulting from the same fluctuations.______________________________
b. Selling a good or service to a foreign customer.______________________________
c. Government allocates resources and determines output through central planning.______________________________
d. The organization responsible for developing uniform worldwide accounting standards.______________________________
e. Distinguishes between illegal influence peddling and legal facilitating payments.______________________________
f. A cross-border contractual agreement allowing one company to use trademarks, patents, or technology of another company.______________________________
g. The impact on the value of a company of unexpected fluctuations in the exchange rate.______________________________
$\begin{array}{|l|l|l|}\hline \text { Foreign exchange risk } & \text { Future contracts } & \begin{array}{c}\text { International Accounting } \\\text { Standards Board }\end{array} \\\hline \begin{array}{c}\text { Loss on fluctuation in } \\\text { foreign exchange rates }\end{array} & \text { Hedging } & \text { Exporting } \\\hline \text { Planned economy } & \text { International licensing } & \begin{array}{c}\text { Foreign Corrupt Practices } \\\text { Act }\end{array} \\\hline\end{array}$

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Definitions:

Economies of Scope

Cost advantages that a business achieves due to a variety of goods or services rather than specializing in a single product.

Multiproduct Cost Function

A Multiproduct Cost Function calculates the cost of producing different products within the same firm, taking into account the cost interactions between producing multiple products.

Economies of Scope

Cost advantages that a business experiences by producing a wider variety of products, as opposed to specializing in a single product or service.

Learning Curve

Graph relating amount of inputs needed by a firm to produce each unit of output to its cumulative output.