| American depository receipt (ADR) | Foreign shares held by a custodian, usually a U.S. bank, in the issuer's home market and traded in dollars on the U.S. exchange
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| bank swap | Swap made between banks to acquire temporary foreign currencies
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| barter | A direct exchange of goods or services for goods or services without the use of money
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| blocked funds | Funds whose conversion from a host currency or repatriation is not allowed by a host government
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| branch | Legal extension of the parent company
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| clearing account arrangement | A process to settle a trading account within a specified time
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| compensation | Countertrade in which the developing country makes payment in products produced by use of developed country equipment.
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| consolidation | The process of translating subsidiary results and aggregating them into one financial report
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| counterpurchase | Countertrade in which the goods supplied do not rely on the goods imported
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| countertrade | The trade of goods or services for other goods or services
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| currency option hedge | An option to buy or sell a specific amount of foreign currency at a specific time in order to protect against foreign currency risk
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| currency swap | An exchange of debt service of a loan or bond in one currency for the debt service of a loan or bond in another currency
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| current rate method | An approach in foreign currency translation in which current assets and liabilities are valued at current spot rates and noncurrent assets and liabilities are translated at their historic exchange rates
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| derivative | A contract whose value is tied to the performance of a financial instrument or commodity
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| economic exposure | The potential for the value of future cash flows to be affected by unanticipated exchange rate movements
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| forward market hedge | Foreign currency contract sold or bought forward in order to protect against foreign currency movement
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| functional currency | The primary currency of a business
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| hedging | A process to reduce or eliminate financial risk
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| income tax | Direct tax levied on earnings
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| industrial cooperation | An exporter's commitment to a longer-term relationship than that in a simple export sale, in which some of the production occurs in the receiving country
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| interest rate swap | An exchange of interest rate flows in order to manage interest rate exposure
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| leading and lagging | Timing payments early (lead) or late (lag), depending on anticipated currency movements, so that they have the most favorable impact for company
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| money market hedge | A method to hedge foreign currency exposure by borrowing and lending in the domestic and foreign money markets
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| multilateral netting | Strategy in which subsidiaries transfer net intracompany cash flows through a centralized clearing center
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| offset | Trade arrangement that requires that a portion of the inputs be supplied by the receiving country
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| offshore financial center | Location that specializes in financing nonresidents, with low taxes and few banking regulations
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| parallel loans | Matched loans across currencies that are made to cover risk
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| spot and forward market swaps | Use of the spot and forward markets to hedge foreign currency exposure
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| subsidiary | Separate legal entity owned by the parent company
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| swap contract | A spot sale/purchase of an asset against a future purchase/sale of an equal amount in order to hedge a financial position
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| switch trading | The use of a third party to market products received in countertrade
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| temporal method | An approach in foreign currency translation in which monetary accounts are valued at the spot rate and accounts carried at historical cost are translated at their historic exchange rates
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| transaction exposure | Change in the value of a financial position created by foreign currency changes between the establishment and the settlement of a contract
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| transfer price | The cost of intracompany sales of goods or services
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| translation exposure | Potential change in the value of a company's financial position due to exposure created during the consolidation process
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| triple bottom line (3BL) | A results or impact report on the environmental, social, and financial impacts of the business
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| value-added tax (VAT) | Indirect tax collected from the parties as they add value to the product
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| withholding tax | Indirect tax paid by the payor, usually on passive income
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