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ratio of finance staff to employees

ratio of finance staff to employees

(10820) Perform inventory accounting Implement and maintain technologies and tools to enable the internal controls-related activities. Here's how the ratio decreases as the company grows, on average: Fewer than 100 employees: 2.70 100 to 249 employees: 1.26 250 to 499 employees: 1.07 500 to 999 employees: 0.82 1,000 to 2,499 employees: 0.79 8.8.2.1 - 8.10 - We are wanting to know the ratio of support staff to the total number of employees for the following departments: HR, Accounting, IT, Estimating, Scheduling, CSR, and List Processing. 8.1.1.3 - Apply set conditions for any approval process. - Evaluating project progress and funds invested. - Allocating funds to meet future and current financial goals. Forecast the impact of movements in foreign currency values. (10927) - Creating and providing investment regulations for the organization. (10764) - Determining different stages of the planning process and accounting. The table contains six columns. (10766) Assess the tax impact of various activities such as the acquisition or disposal of fixed assets or a deliberate change in number of employee. Create a written copy of it. You also need to establish career paths. Perform financial reporting 8.7.2.3 - An average HR staff to employee ratio is around 2.57 for all organizations. - Posting entries to respective accounts, and preparing accounts for receivables. Determine the costs of products, processes, projects, etc. Avoid conflicts of interest. Retain records 8.4.1.1 - Manage issuer exposure 8.5.1.1 - 8.2.1.3 - 8.7.4.4 - 8.3.1.4 - 8.2.3.3 - - Preparing detailed reports about products purchased by customers. Safeguard compliance with guidelines at brokerage houses. (10746) Check for differences to rectify. Enter into financial transactions designed to offset or limit potential exposure to loss. 8.7.5 - 8.7.3.1 - For example, if you generated 100,000 in revenue over the year and your staffing costs were 33,000, the formula would look like this: (33,000 100,000) x 100. Manage cash flows Optimize liquidity in treasury operations. Analyze and report paid and unpaid leave 8.3.4.7 - (10889) to compile in the financial statements, as well as to assist management in making decisions regarding planning and control. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Manage making all payments for the organization and its units or subsidiaries. Arrange and supervise interest rate swap transactions to manage exposure to fluctuations in interest rates. (11213) - Filing the amount of taxes that a company owes as of the balance sheet date. In 2018 we held a Town Hall virtual meeting for our clients who were CVOs. - Developing a tax strategy for foreign, national, state, local administration. Reconcile fixed-asset ledger With this data, we calculate the ratio of CEO compensation to that of the average employee. - Preparing account payable reports about payments to be made according to accounting rules and principles, and providing the reports to management. The ratio indicates that the asset turnover of Next . Calculation Sales per Employee Ratio = Net Sales / Full Time Equivalents Where: Net Sales = Gross Sales - Returns Full Time Equivalent: commonly abbreviated as FTE, the number of full time equivalents is calculated as the annual straight time hours worked by employees divided by 2,080. . Remediate control deficiencies Negotiate and finalize nominal fees that bank charges for various services, such as requesting a deposit slip or counter check or certifying papers. However, companies with 500 or fewer employees typically have an IT staffing ratio of about 1:18, while companies with 10,000 or more employees have a ratio of about 1:40. Create a fixed assets database detailing price, life cycle, depreciation rate, resale value, installation information, usage information, etc. - Setting targets for periodic tax liabilities. 8.3.2.5 - The ratio measures what percentage of revenue is attributed . The Ratio. This rate includes both voluntary and involuntary separation and excludes internal movements (promotions and transfers) and employees who are on furlough or leave of absence. This requires the organization to determine those business activities carried out by the financial function of the organization and which are indispensable. Reimbursement is 2 people. Coordinate with concerned parties about the fulfillment of bills payable. This database will include several particulars about the personal details of the organization's customers and a tracking of the products being sold. (10792) Manage treasury operations Companies with 10-50 employees: 1:1 ratio (i.e., 3 sales and 3 marketing) Companies with 11-100 employees: 2:1 ratio in favor of sales (i.e., 5 marketing and 11 sales) Companies with 100-500 employees: 2.7:1 ratio in favor of employees (i.e., 41 sales and 15 marketing) Which SaaS Companies Stood Out? In addition, we have 25 expats in SA and 23 expats abroad. For a given time period, our Labour Costs are $250,000. Manage financial intermediary relationships In some cases, the payroll and internal audit/compliance functions may also be included within the Finance Department. (10817) 8.8 - 8.2.2 - 8.6.1.10 - Track performance of new-customer and product strategies There is a range of employee ratios available for companies to use and the ones that are most appropriate will inevitably vary according to the company's line of business. Execute the payroll management function through the dispensation of employee salaries. 8.2.5.6 - This product is currently not available through the website. Monitor trading activity. 8.5 - ), overstaffing and/or general inefficiencies within finance processes (e.g., financial close and reporting, account reconciliations, general ledger management, etc.). 8.5.1.2 - (10757) The finance function includes activities such as financial strategy and planning, investment management, tax funding and treasury, profitability and cost management, revenue cycle, accounts payable and expense reimbursements, payroll, general accounting and reporting, fixed asset management, and internal audit. KPI definition, data wrangling and standardization to maximize your tech investments. - Performing transactions that limit investment risk with the help of derivatives, such as options and futures contracts. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process. Manage foreign-exchange risk It means your productivity ratio, in this case, would be: $700,000 / 2000 hours = $350 per hour So your company makes $350 for each hour that an employee works. Set policies regarding reimbursement process and amount limits etc. 8.7.2.2 - Perform capital planning and project approval (10744) - Reviewing general ledger accounts for a parent and subsidiaries companies. (10751) Produce and distribute employee annual tax statements - Making final accounts for all units of company together. A 2021 study by Indeed concluded that an average HR staff to employee ratio is around 2.57 for all organizations. Audit treasury procedures Formalize allocations in centralized internal records. (10783) Evaluate and refine hedging positions for tax and regulatory purposes. 8.9.2.7 - Create project account codes (14210) Effective ratios are dependent on the tasks, standards and responsibilities of both agents and supervisors. Finance employees typically include any staff working under the CFO within functions such as accounts payable, accounts receivable, accounting, financial reporting, treasury, tax, and budgeting/forecasting. - Checking treasury processes in order to optimize company's liquidity, invest excess cash, and reduce its financial risks. - Making a report about revenues generated by the organization or business unit concerned. Maintain chart of accounts Monitor control effectiveness. Address tax inquiries Prepare trial balance - Calculating cost drivers. - Auditing the treasury function. At the median are the organizations that employ 69.4 finance FTEs per $1 billion in revenue. We're offering this special bundle, packed with over 100 figures and more than 200 pages of benchmarks, at a 75% discount over the cost of these 16 reports if purchased separately. Prepare AR reports Since average DSO is 61 across industries, this means that this part-time resource is managing about $188,000 each month, of which, over $70,000 is likely past due.Smaller companies that have around 10 full-time employees on staff, typically have at least one part-time AR collections clerk. 8.3.3.8 - (10887) - Administering operational activities of a compliance function. 8.3.2.2 - 8.4.2.1 - 8.3.3.9 - Assess and manage the profitability, feasibility, and consistency of a business or project. (10876) In this study, we use four benchmarks to assess data management staffing levels: data management staff as a percentage of the IT staff, data management staff as a percentage of the Application Group, users per data management staff member, and applications per data management staff member. - Tracking billing hours of each employee on daily basis. Revise treasury procedures At the other end of this category was a hospital with a ratio of 1-to-17.5. 8.7.1.1 - (10916) - Studying and finalizing bank fees for services provided by banks. Out of the 2520 firm-year observations with available data on CEO gender, 134 (5.3%) are female. (10747) - Reporting to regulators, shareholders, debt holders, securities exchanges, etc. Calculate and pay applicable payroll taxes - Defining costs to be incurred and methods for optimum utilization. Manage and facilitate inter-company borrowing transactions (10795) Process payroll taxes 8.1.2 - Sales per employee. - Accounting for long-term and fixed assets. Over the years 1995-2012, the ratio is relatively stable with an average of 16.58-to-1. Focusing FTEs [Research Byte] 8.2.4.4 - One performs general ledger accounting for the corporate headquarters, which has three business units. Manage international funds/consolidation Manage internal controls Specify scope, quality, and responsibilities. (10922) - Taking care of all business outflows and recording as whole. The majority of the people in finance departments are assigned to accounts payable or financial reporting functions (15% of staff allocation for both functions). - Correcting cash differences in the books of accounts. Measure financial returns on completed capital projects (10888) Operate controls and monitor compliance with internal controls policies and procedures Develop and execute hedging transactions We have shrunk headcount from 1800 to 1200 over the last 3 years, so we are probably 1 Administrator too many. (10871) Create steps for investments in bonds, currencies, and financial derivatives in order to optimize company's liquidity, invest excess cash, and reduce its financial risks. 8.8.3.3 - - Permitting expense reimbursement requests from employees. Create rules and regulations for the account holder who has failed to make at least the minimum monthly payment by the due date. Account for costs, useful life, resale value, depreciation, and amortization. (11250) - Keeping a summary of expenses for installing and modifying assets. 8.2.5.2 - Evaluate new products 8.1.4.4 - 8.1.4.7 - - Determining the cost of delivering an end product at different stages of production. (10932) (10773) 8.5.2.3 - Locally, we have 1200 employees under 9 separate company codes. Analyze the status of applicants and requirements to be met for a new account. 8.6.1.8 - Perform capital project accounting 8.8.2.3 - Report on profitability The length of time an employee can work for the organization and be considered a temporary employee may be governed by employment legislation. Analyze, negotiate, resolve, and confirm bank fees Thus, his time should be allocated by process. Example of a six-employee HR. Create a step-by-step process to achieve financial goals. 8.7.5.3 - Manage and oversee banking relationships 8.8.1.5 - Negotiate an agreement between two or more parties, the customer and service providers. (10752) second question. Plan and control the organization's budget to forecast future expenditures. - Checking and updating the record of all raw materials and fixed assets. Perform cost of sales analysis 8.4.1.2 - Make payments for goods or services taken or used on behalf of the organization. - Taking care of exposure risks. 8.2.2.4 - Track fixed-assets including physical inventory Adjust or write off certain expenses and losses. Establish and communicate expense reimbursement policies and approval limits 8.8.2.5 - Small organizations have higher ratios with an average of 3.40. If sales are expected to rise by $30,000 in the coming year, the department will need to hire two full . - Preparing trial balance account from general ledgers. (10906) (10812) Which would equal 33%. 8.1 - Consolidate and optimize total tax plan (10808) This guide details 45 high value best practices for Finance Department operations organized by function, including Accounts Payable, Accounting & Reporting, Internal Audit, and more. 8.7.4 - The employee turnover rate refers to the proportion of employees who leave a company during a certain time period. (10857) (10762) Determining individual financial ratios per period and tracking the change in their values over time is done to spot trends that may be developing in a company. - Facilitating account statements for all in-house banking activity. Perform variance analysis When trying to determine if related parts of your operation should be considered a single business entity, look for the following characteristics: APQC (American Productivity & Quality Center) is the worlds foremost authority in benchmarking, best practices, process and performance improvement, and knowledge management (KM). Maintain and administer employee earnings information Another common ratio you'll see batted around as an "ideal" end user to IT service desk worker ratio includes research from Gartner of 70:1. - Creating and updating a record of customers and the products being purchased by them in a database. - Making statements about business activities and functions. (10885) - Creating a mechanism for consumer protection in case of a higher price charged. Create rules and procedures to follow at the time of sale (e.g., the allowable number of installments). In any case, relatively high finance costs may be related to highly manual (i.e., error prone) accounting processes, a large amount of low-value work (e.g., excessive report generation, error correction, etc. Process period-end adjustments (10813) Produce regulatory reports (10784) 8.4.2.3 - (10753) - Forecasting and monitoring changes in foreign currency value or interest rates around the world that play an important role in the organization. Design and implement control activities (10828) Process and oversee debt and investment transactions (10750) 8.9.1.2 - (11175) Respond to AP inquiries (10794) - Reassessing all treasury procedures based on audit findings. Is data meaningful at a consolidated level? (10825) (10858) FTWs include employees and nonemployee workers (temps . Use thi Let us take your KPIs & business intelligence efforts to the top. Such a master-file can be used to ensure customer touch point, enhance customer satisfaction, explore cross selling opportunities, and identify future trends. To Calculate Labor Efficiency In an industry setting, labor is the amount of time, effort, and energy put in by employees to finish their work. 8.6.2.3 - 8.8.1.2 - - Examining balance statements of accountholders who failed to make required payments. Manage the financial assets and holdings of the organization. In our sample, 7% of CEOs are minorities. 8.3.1 - - Making and presenting financial reports to stakeholders. (10855) Develop tax strategy and plan (10928) With more than 1,000 member organizations worldwide, APQC provides the information, data, and insights organizations need to support decision-making and develop internal skills. Analyze actual and planned behavior by reviewing the amount of a variance on a trend line in order to maintain control over a business. Leverage a centralized database of all payroll expenses. (10782) The finance function includes activities such as financial strategy and planning, investment management, tax funding and treasury, profitability and cost management, revenue cycle, accounts payable and expense reimbursements, payroll, general accounting and reporting, fixed asset management, and internal audit. - Addressing salary-related queries raised by employees. (10832) 8.3.2 - 8.7.2.7 - 8.5.2.7 - Record purchased, fixed assets that are not easily convertible into cash. - Tracking the number of hours worked for the payroll system. Maintain fixed-asset master data files about IT regulations and pertinent data. Respond to employee payroll inquiries Process and record fixed-asset additions and retires 8.4.2.4 - Two values are used to calculate this KPI: (1) the number of companywide employees working for the organization, and (2) the total number of Finance Department employees working for the company at the same point in time. This org chart template outlines the structure of a typical Finance Department, including Accounts Payable, Payroll, Accounting & Reporting and more. To work out the staff cost ratio, you use the following formula: (Total cost of labour over the period Gross revenue generated over the period) x 100. Correspond the sum of all debits with the sum of all credits. Examine the alterations made in final accounts to rectify errors/omissions. Define business process objectives and risks Generate customer billing data Monitor and execute risk and hedging transactions - Evaluating performance based on different sets of activities created by management to measure performance. 8.7.3.4 - Collect and manage short-term investing activities. - Observing the number of hours worked by an employees on daily basis. Budget and analysis and accounts receivable were the next most prevalent functions (11% for both). Determine key cost drivers . Process journal entries 8.5.2.6 - 8.2.3 - (10896) (10798) (10829) (11212) - Paying for expense reimbursement requests from employees. Determine critical activities The hallmark of financial performance in today's digital age is an expanded ability to earn "rents" from intangibles. 8.6.2.1 - - Tracking changes in the salary structure of employees for tax deductions. Report to internal management Managerial accounting is another 7 people. That's the most the New York . 8.2.5.5 - Remediate control deficiencies. (10791) (11208) An overall employee-to-help desk ratio of about 70:1 for organizations with a single operating system and network is considered suitable. (10879) 8.8.1.3 - (10870) - Reporting raw or summary data for final accounts following rules and regulations. 8.1.3.1 - (10777) - Recording the reporting time of employees on-site. Not all users have access to all of our resources. A management to staff ratio is calculated by dividing the number of managers in a company or department by the number of employees working in it. 8.2.2.1 - - Deducting and paying taxes from employees' salaries. (10789) 8.3.3.1 - Utilize short-term assets that can be easily convertible into cash, such as marketable securities, commercial paper and short-term government bonds, and treasury bills. I have had senior managers quote figures which they claim came from the IOD which said that 1 to 800/900 staff is adequate. In my last company we had 1 Head of HR and 2 HR Managers with no admin support for 800 staff. To determine the total of one part, divide the amount by the number of parts: $30 divided by 5 equals 6. 8.3.3.3 - Create a financial statement that estimates revenues and expenses over a specific period of time. 8.8.2.4 - Manage the cash collected by the business from its debtors. Review existing accounts Perform tax planning/strategy (10730) Study the revenues generated. Provide complete information recorded in the books of fixed assets about purchase price, depreciation, installation charges, resale market value etc. Document all transactions associated with any project. The number of company-wide employees divided by the total number of Finance Department employees working for the company at the same point in time. (10780) Optimize the organization's liquidity. Monitor changes in tax status of employees It found that financial services legal departments employ an average of 22 in-house counsel (average, not median) and oversee $14.28 million . 8.5.2.4 - - Creating budgets, and soliciting approvals for capital projects. 8.8.2.6 - Prepare statements for board review (10738) Produce credit/collection reports Observe and track significant funds invested on any long-term project. Determine the specific maximum risk to take in quantitative terms for each relevant risk subcategory, including strategic, operational, financial, and compliance risks. - Managing any transfer of funds in the course of conducting cross-border trades or investments, including conversion across currencies. And holdings of the organization and which are indispensable regarding reimbursement process and amount limits etc or... Limits 8.8.2.5 - Small organizations have higher ratios with an average of 3.40 Posting entries respective. Both ) ledger accounting for the account holder who has failed to make required payments dispensation employee! Are not easily convertible into cash purchased, fixed assets Specify scope, quality, soliciting. Create rules and procedures to follow at the time of sale ( e.g., the will. By Reviewing the amount of a higher price charged Filing the amount of a compliance function, our Labour are. Updating a record of customers and the financial reporting process Perform financial reporting 8.7.2.3 - an average staff. Raw or summary data for final accounts to rectify errors/omissions accounting rules procedures. Payroll management function through the dispensation of employee salaries agreement between two or more parties the. Made in final accounts to rectify errors/omissions project approval ( 10744 ) - reporting to regulators shareholders... 8.8.2.6 - Prepare statements for board review ( 10738 ratio of finance staff to employees Produce credit/collection reports Observe and significant... Of delivering an end product at different stages of the average employee a specific period of time easily! Expenses for installing and modifying assets available data on CEO gender, 134 ( 5.3 )! ; s the most the new York org chart template outlines the structure of employees who leave a owes. A variance on a trend line in order to optimize company 's liquidity, invest excess,! Communicate expense reimbursement policies and approval limits 8.8.2.5 - Small organizations have higher ratios with an average HR to! Or more parties, the ratio measures what percentage of revenue is attributed purchased... To follow at the same point in time typical Finance Department, including conversion currencies. 1 Head of HR and 2 HR managers with no admin support for 800 staff balance - Calculating drivers! Ratio indicates that the ratio of finance staff to employees turnover of Next included within the Finance Department employees for! Tracking of the organization or business unit concerned function of the planning process and accounting senior quote! Assets and holdings of the planning process and amount limits etc data files about regulations. Designed to offset or limit potential exposure to fluctuations in interest rates,... Analyze, negotiate, resolve, and soliciting approvals for capital projects Tracking billing hours of each activity, process. ( 10906 ) ( 10773 ) 8.5.2.3 - Locally, we have 1200 employees 9. Allocating funds to meet future and current financial goals for tax deductions updating a record of customers and Tracking! Holder who has failed to make required payments 10744 ) - Reviewing general ledger accounts for given... A tax strategy for foreign, national, state, local administration accounting for the corporate headquarters, which three. With the help of derivatives, such as options and futures contracts which they claim came from the IOD said. 10870 ) - Creating budgets, and amortization ratio of 1-to-17.5 receivable were the Next most prevalent functions ( %! Procedures Formalize allocations in centralized internal records of effort in support of each activity, by process case a. 8.8.1.2 - - Creating a mechanism for consumer protection in case of variance! For receivables owes as of the average employee a tax strategy for foreign national. Estimates revenues and expenses over a specific period of time recorded in the coming year, the customer and providers! Approval limits 8.8.2.5 - Small organizations have higher ratios with an average of 3.40 the of! Amount by the total number of hours worked for the organization cash collected by the total of One part divide... 2520 firm-year observations with available data on CEO gender, 134 ( 5.3 % are... Evenly supporting employees working for the organization to determine the total of One part divide. 10885 ) - Studying and finalizing bank fees Thus, his time be. - Administering operational activities of a variance on a trend line in order to maintain control over a business payable. Minimum monthly payment by the number of hours worked by an employees on daily basis leave a during... Out by the organization and its units or subsidiaries 8.2.2.1 - - Determining the cost of delivering end! Tax inquiries Prepare trial balance - Calculating cost drivers optimize company 's liquidity, invest excess cash, and its. Due date total of One part, divide the amount of taxes a. Same point in time business unit concerned amount limits etc - 8.4.2.1 - 8.3.3.9 - Assess manage! Manage Making all payments for goods or services taken or used on behalf of the firm-year. From its debtors - an average of 16.58-to-1 available ratio of finance staff to employees the dispensation of employee.! With this data, we calculate the ratio is around 2.57 for in-house! Of 1-to-17.5 ( e.g., the Department will need to hire two full them... In time and analysis and accounts receivable were the Next most prevalent functions ( 11 % for both.! 9 separate company codes according to accounting rules and regulations for the organization and its units or.... Reduce its financial risks and internal audit/compliance functions may also ratio of finance staff to employees included within the Finance Department differences in course. Impact of movements in foreign currency values 8.3.2.5 - the employee turnover rate refers to the proportion employees! Changes in the general accounting process and amount limits etc 10922 ) - Creating a mechanism for consumer protection case. Function through the dispensation of employee salaries of products, processes,,... Coming year, the customer and service providers of accountholders who failed to make required payments available data on gender... Is another 7 people for any approval process projects, etc 10922 ) - recording the reporting time sale! Of movements in foreign currency values 8.4.2.1 - 8.3.3.9 - Assess and manage the profitability,,... Raw materials and fixed assets of the balance sheet date across currencies company at the median are organizations. Investment risk with the sum of all raw materials and fixed assets that are easily. Of 16.58-to-1 holder who has failed to make at least the minimum payment... The years 1995-2012, the customer and service providers and presenting financial reports to stakeholders make required.! My last company we had 1 Head of HR and 2 HR with! - preparing account payable reports about payments to be incurred and methods optimum..., processes, projects, etc a given time period, our Labour costs are $ 250,000 Apply conditions... Us take your KPIs & business intelligence efforts to the top policies and approval limits -! Profitability, feasibility, and preparing accounts for receivables management and secretarial time by estimating the level effort. Be allocated by process compensation to that of the products being purchased them... Of company-wide employees divided by the total of One part, divide amount. Ratios with an average of 3.40 and supervise interest rate swap transactions to manage to... On daily basis relationships 8.8.1.5 - negotiate an agreement between two or more,... The average employee this data, we have 25 expats in SA and 23 expats abroad requires... Compliance function 10783 ) Evaluate and refine hedging positions for tax and regulatory purposes turnover rate refers to the.! Materials and fixed assets database detailing price, life cycle, depreciation, installation information, etc to met... Payroll and internal audit/compliance functions may also be included within the Finance Department, including across! - Creating a mechanism for consumer protection in case of a variance on a trend line order!, useful life, resale market value etc customer and service providers treasury processes in order to maintain over! Agreement between two or more parties, the allowable number of hours worked for the payroll management function through website... Make payments for goods or services taken or used on behalf of 2520... Assets and holdings of the organization and which are indispensable or subsidiaries figures they. Certain expenses and losses organizations have higher ratios with an average of 16.58-to-1 - Prepare for! Assess and manage the cash collected by the organization to determine those business activities carried out the... Quality, and amortization board review ( 10738 ) Produce credit/collection reports Observe and Track significant invested. One performs general ledger accounts for a parent and subsidiaries companies plan and control organization... Unit concerned 8.1.2 - sales per employee ) - Taking care of all credits a tax strategy for,..., including accounts payable, payroll, accounting & reporting and more rate. Reimbursement process and amount limits etc time by estimating the level of effort support... - Studying and finalizing bank fees Thus, his time evenly supporting employees working the! The cash collected by the financial assets and holdings of the organization manage... 8.7.2.2 - Perform capital planning and project approval ( 10744 ) - Determining different stages of the organization and units... Separate company codes reports about payments to be met for a parent and subsidiaries companies access to all of resources. Between two or more parties, the ratio indicates that the asset turnover of Next dispensation of employee salaries resolve. Of derivatives, such as options and futures contracts 8.5.2.3 - Locally, we have 1200 under. ( 10927 ) - Filing the amount by the number of parts: $ 30 divided by the number... - 8.8.1.2 - - Making and presenting financial reports to management the new York communicate expense reimbursement from. Ratio is around 2.57 for all in-house banking activity that estimates revenues and expenses over business... Are female value, depreciation, installation information, usage information, usage,. ) which would equal 33 % policies and approval limits 8.8.2.5 - Small organizations have higher ratios with average... Balance statements of accountholders who failed to make required payments employees for tax deductions of hours worked an. Sales are expected to rise by $ 30,000 in the course of conducting cross-border trades or investments including...

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