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Interpersonal Skills What they are Interpersonal skills are the behaviors and techniques people use to interact effectively with others. They include how you communicate, listen, resolve conflicts, build relationships, and adapt to social expectations. In the workplace, strong interpersonal skills help teams collaborate, solve problems, and advance careers. Key takeaways Interpersonal skills are learnable and…

What Is the Internet of Things (IoT)? How It Works and Benefits The Internet of Things (IoT) refers to the network of physical devices and objects that are embedded with sensors, software, and network connectivity, enabling them to collect and exchange data. IoT expands connectivity beyond traditional computers and smartphones to everyday items such as…

Internationalization: Definition, Benefits, Challenges, and Examples What is internationalization? Internationalization is the process of designing products, services, or business models so they can be adapted efficiently for use in multiple countries and cultures. In software and product design, this means building flexibility (e.g., text expansion, interchangeable units, date/time formats, character encoding) so the offering can…

International Swaps and Derivatives Association (ISDA) The International Swaps and Derivatives Association (ISDA) is a private trade association that promotes safer, more efficient trading in over-the-counter (OTC) derivatives. It develops standard documentation, best practices, and industry tools that reduce risk, increase transparency, and improve the infrastructure for participants who trade swaps and other derivatives. Purpose…

International Securities Identification Number (ISIN) What is an ISIN? An International Securities Identification Number (ISIN) is a unique, 12-character alphanumeric code used to identify a specific security globally. ISINs create a standard identifier for securities that supports accurate tracking, clearing, settlement, and recordkeeping across markets. ISIN structure An ISIN consists of 12 characters: * First…

International Organization for Standardization (ISO) The International Organization for Standardization (ISO) is a non-governmental organization that develops and publishes international standards to ensure quality, safety, and efficiency across products, services, and systems. Headquartered in Geneva, ISO plays a central role in facilitating global trade by creating common technical and management benchmarks. History and structure Founded…

International Monetary Market (IMM) Overview The International Monetary Market (IMM) is the division of the Chicago Mercantile Exchange (CME) that handles currency and interest-rate futures and options. It was established in the early 1970s as part of the CME’s expansion into financial futures and remains a key venue for hedging and speculating on foreign exchange…

International Monetary Fund (IMF) The International Monetary Fund (IMF) is an intergovernmental financial institution that promotes global monetary cooperation, financial stability, international trade, high employment, sustainable economic growth, and poverty reduction. It brings together 191 member countries to monitor the world economy, provide policy advice, deliver technical assistance, and lend funds to members facing balance-of-payments…

International Maritime Organization (IMO) Overview The International Maritime Organization (IMO) is a specialized agency of the United Nations responsible for regulating international shipping. Its core mission is summed up as: “safe, secure and efficient shipping on clean oceans.” The IMO develops international standards and conventions to improve maritime safety, enhance security, prevent marine pollution, and…

International Labour Organization (ILO) The International Labour Organization (ILO) is a United Nations specialized agency that sets international labour standards and promotes social and economic justice. Headquartered in Geneva with about 187 member states and roughly 40 field offices worldwide, the ILO aims to ensure decent, productive, and sustainable work under conditions of freedom, equity,…

What Is International Investing? International investing is buying securities—stocks, bonds, funds, or derivatives—issued by companies or governments outside an investor’s home country. It expands the investment universe beyond domestic markets and can provide additional sources of return and diversification. Why Invest Internationally? Diversification: Broadens exposure across different economies, industries, and market cycles, which can reduce…

International Fisher Effect (IFE) What it is The International Fisher Effect (IFE) is a theory that links exchange-rate movements to differences in nominal interest rates between two countries. It predicts that the currency of the country with the higher nominal interest rate will tend to depreciate relative to the currency of the country with the…

Understanding IFRS: Global Accounting Standards Explained International Financial Reporting Standards (IFRS) are a set of accounting principles intended to bring consistency, transparency, and comparability to financial reporting worldwide. Issued by the International Accounting Standards Board (IASB) and maintained by the IFRS Foundation, IFRS is the predominant reporting framework for public companies across most countries. Key…

International Finance Corporation (IFC) Key takeaways The IFC is the World Bank Group’s arm for private-sector investment in developing countries. It provides loans, equity investments, and advisory services to promote economic development and reduce poverty. The IFC raises funds by issuing bonds in international markets and committed a record $43.7 billion in fiscal year 2023….

International Finance International finance studies monetary interactions and capital flows between countries. It covers how exchange rates, foreign investment, trade, and international institutions influence economic outcomes across borders. Understanding international finance is essential for policymakers, multinational firms, investors, and anyone affected by global economic linkages. Key takeaways International finance focuses on cross-border monetary transactions, exchange…

International Depository Receipt (IDR) What is an IDR? An International Depository Receipt (IDR) is a negotiable certificate issued by a bank that represents ownership of shares in a foreign company held in trust. IDRs let investors buy and sell foreign equity on local exchanges without trading directly on the issuer’s home exchange. Naming and variants…

International Chamber of Commerce (ICC) The International Chamber of Commerce (ICC) is the world’s largest business organization, representing around 45 million companies in more than 170 countries. Its mission is to promote open international trade and investment, develop rules and standards for cross-border commerce, resolve commercial disputes, and advocate business perspectives to governments and intergovernmental…

Key takeaways * An international bond is debt issued by a non‑domestic entity, typically denominated in a currency other than the investor’s home currency. * Common types include eurobonds, global bonds, and Brady bonds. * International bonds can diversify a portfolio but introduce currency, credit, liquidity, and regulatory/tax risks. * Many investors access international bonds…

International Banking Facility (IBF) What is an IBF? An International Banking Facility (IBF) is a set of accounts and activities that allows U.S.-based depository institutions to provide deposit, loan and other banking services to non‑U.S. residents and foreign institutions while receiving limited regulatory and tax relief. IBF transactions are typically exempt from Federal Reserve reserve…

International Bank of Reconstruction and Development (IBRD) Key takeaways * The IBRD is a World Bank institution that provides finance and policy advice to support sustainable development and poverty reduction. * It was created after World War II to help rebuild economies and has since broadened its mission to promote global economic growth. * The…

International Bank Account Number (IBAN) What is an IBAN? An International Bank Account Number (IBAN) is a standardized identifier for bank accounts used mainly to facilitate and verify international payments. It ensures that cross-border transfers include the correct country, bank and account details, reducing errors, delays, and rejected payments. IBAN structure An IBAN consists of:…

International Accounting Standards (IAS) International Accounting Standards (IAS) were the original international rules for financial reporting. They were issued by the International Accounting Standards Committee (IASC) beginning in 1973 and were superseded in 2001 by International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB). IFRS now serves as the primary international…

Internalization: Definition in Business and Investing What is internalization? Internalization is the decision to handle a transaction, project, or service within an organization rather than outsourcing it to an external party. It can apply to everyday business operations, multinational asset transfers among subsidiaries, and financial trading. Key takeaways Internalization means completing work in-house instead of…

What Is the Internal Revenue Service (IRS)? The Internal Revenue Service (IRS) is the U.S. government agency within the Department of the Treasury responsible for administering and enforcing federal tax laws. Its core duties include collecting federal taxes, processing tax returns, issuing refunds, conducting audits, and providing taxpayer guidance. Main functions Enforce the Internal Revenue…

Internal Revenue Code (IRC): Definition, Coverage, and History What is the Internal Revenue Code? The Internal Revenue Code (IRC) is the federal tax law contained in Title 26 of the United States Code. It is the consolidated set of general and permanent laws governing federal taxation. The Internal Revenue Service (IRS) administers and enforces the…

Internal Rate of Return (IRR) What is IRR? The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of an investment’s cash flows equal to zero. Practically, IRR is an estimated annualized rate of return for a project or investment that accounts for the timing of cash inflows…

Internal Growth Rate (IGR): What It Is, How to Calculate It, and When to Use It Definition The internal growth rate (IGR) is the maximum rate at which a company can grow using only internally generated funds—primarily retained earnings—without raising external financing (debt or equity). Why it matters Shows how fast a firm can expand…

Internal Controls: Essentials and Why They Matter Internal controls are the policies, procedures, and practices an organization uses to safeguard assets, ensure the accuracy of financial reporting, promote compliance with laws and regulations, and support operational efficiency. While they cannot guarantee perfection, properly designed controls provide reasonable assurance that a company’s financial information is reliable…

Internal Auditor (IA) Key takeaways An internal auditor is a company employee who provides independent, objective evaluations of financial, operational, and compliance controls. Internal auditors identify weaknesses, recommend improvements, and follow up to ensure corrective actions are implemented. External auditors are independent third parties appointed to express an opinion to shareholders; public companies are legally…

Internal audit What is an internal audit? An internal audit is a systematic review of a company’s processes, controls, systems, and records to identify risks, inefficiencies, and opportunities to add value. It assesses compliance, operational effectiveness, financial accuracy, IT security, environmental impact, and alignment with management objectives. Internal audits are initiated by management or the…

Intermediate Good: Definition and Overview An intermediate good is a product or service used as an input to produce a final good or service. Intermediate goods may be transformed, combined, or incorporated into a finished product sold to consumers, or further processed into other intermediate goods. The classification depends on how the item is used:…

Interim Statement An interim statement (or interim report) is a financial report issued by a company between its full-year (annual) financial statements. Interim statements provide timely information about a company’s financial position, performance, cash flows, and changes in equity for a portion of the fiscal year (typically a quarter), and are generally unaudited. Purpose and…

Interim Dividend: Definition, How It Works, and Key Differences from Final Dividends Key takeaways * An interim dividend is a dividend paid to shareholders before a company’s annual general meeting (AGM) and final audited financial statements. * It is typically declared by the board of directors and paid from retained earnings. * Interim dividends are…

Interest Rate Swap Key takeaways An interest rate swap is a contract in which two parties exchange streams of interest payments tied to a specified notional principal. The most common form swaps fixed-rate payments for floating-rate payments (or vice versa); basis swaps exchange one floating index for another. Swaps are over-the-counter (OTC) and highly customizable…

Interest Rate Sensitivity Interest rate sensitivity measures how much the price of a fixed‑income asset (for example, a bond or bond fund) will change in response to movements in market interest rates. Securities with higher sensitivity experience larger price swings for a given change in rates; those with lower sensitivity move less. Key takeaways Interest…