A banker's acceptance is the payment guaranteed by a bank for a time draft that is payable to a seller of the goods.
A banker's acceptance is a short-term investment plan that is created by a company or firm with a guarantee from a bank. It is important that the company or firm is a non-financial firm. It is a guarantee that the bank gives that a buyer will pay the seller the amount at a future date. A good rating is a prerequisite for obtaining the banker's acceptance.
This is very useful, especially during foreign trade. During foreign trade, the creditworthiness of the importer is not known. The period of the banker's acceptance is usually lesser than 180 days. These acceptances are traded at discounts from the face value in the secondary markets. So, the banker's acceptance acts as a negotiable time draft.
This guarantee from the bank is a written promise by the bank to the seller to pay the sum specified if the buyer is not able to do so. This promise is backed by the bank so the seller feels confident in exporting his goods. As it is safe and liquid, the return on the banker's acceptance is low.
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Answer:
The correct answer is option B.
Explanation:
Diseconomies of scale refer to the situation when a firm reaches that stage where increasing output causes the average cost of production to increase instead of decreasing.
This stage comes after the firm has reaped the economies of scale. Diseconomies can arise because of external as well as internal factors.
The main reason behind the diseconomies is that as the firms become increasingly large, it becomes difficult to efficiently coordinate production.
With large scale production, overcrowding of machines and workers create a mismatch and causes the cost to increase. Also with large scale communication between workers and departments become less effective. All these make it difficult to coordinate the production process.
Answer:
Can you tell me which grade are u in and is the question mcq or do u need to solve it?
The simple rate of return on the investment is closest to: <u>34.5%</u>
<u>Explanation</u>:
<em><u>Given</u></em>:
Current salvage value = $15,000
Cost of new machine = $408,000
Cash operating cost = $141,000
Simple Return on Investment is Calculated as follows:-
Simple rate of return on the investment = Net Operating Cost Saved/ Initial Investment X 100
So Simple Return = 141000/408000 X 100
= 34.5%
The simple rate of return on the investment is closest to: 34.5%
Answer: Because of increase in pressure from the local governments to employ locals and the increase in costs of expatriate staffing, especially when the firm has to pay taxes for the workers of the parent-company in both countries.
Explanation:
Most MNCs usually start their operations in a region by selecting primarily from their pool of managers. With the passage of time and increase in internationalization, multinational corporations move to a regiocentric or polycentric policy because of
• increasing pressure which could either be implicit or explicit from local governments to employ locals or legal restraints on using expatriates.
• the greater costs of staffing of expatriate especially when tax has to be paid for the parent-company workers in both countries.
