Answer:
B. High intrest rate.
Explanation:
Unless, it's capital one, of course.
Answer:
a. Soft-drink manufacturers.
- Soft drink manufacturers generally sell more during warm days, so they will be interested in reducing risks (hedging) against cold days.
b. Ski-resort operators.
- Ski-resort operators sell more during cold days (winter), but their sales are negatively affected by both abnormal warm weather or extremely harsh cold weather, so they will be interested in reducing risks (hedging) against abnormal winter weather.
c. Electric utilities.
- Electric utility companies benefit from both HDDs and CDDs, so the more frequent they are the better for them. They probably dislike mild weathers, but love extremes.
d. Amusement park operators.
- Similarly to soft drink manufacturers, amusement park operators sell more during warm days, so they will be interested in reducing risks (hedging) against cold days.
Explanation:
Companies rely heavily on certain weather conditions and need to reduce risk will hedge weather risk.
Heating Degree Day (HDD) basically measures the demand for energy needed to heat some place, e.g. any type of building. If the temperature is below 65°, then people start to request that a place is heated (heating system turned on).
Cooling Degree Day (HDD) is basically the opposite, measures the demand for energy needed to cool some place. If the temperature is above 65°, then people start to request that a place is cooled (air conditioner turned on).
Answer:
The answer is e. growing
Explanation:
The reason international business will continue to grow is because no nation can meet all its needs by itself. There will always be importation and exportation. This is where Comparative Advantage comes in.
What is comparative advantage?
- Simply put, this is the ability of a company or an economy to produce and sell goods and services at a lower price than its competitors, and still realize a larger sales margin. This theory was introduced by the English political economist David Ricardo in 1817.
Another reason why international trade will continue to grow is because of Absolute Advantage.
- Absolute advantage refers to the ability of an economy or a company to produce more or better goods and services than its others.
Let us assume that country A cannot produce its own oil, but country B can. In this scenario, country B has Absolute advantage over country A, therefore country A will naturally import oil from country B regardless of whether there are trade restrictions between them. This is because country A must fulfill its oil needs whether it likes it or not.
Answer:
c. It can help the franchisor expand his or her business rapidly.
Explanation:
Franchising refers to a type of business in which a commodity or method owner (franchisor) gets distribution via affiliated firms or traders (franchisees) with the aim of expanding the business of the franchisor.
Under franchising, the franchisor gives to the franchisee a kind of licence which gives the franchisee access to method, trademarks, and proprietary knowledge of the franchisor so that the franchisee can sell a commodity under the name of the franchisor’s business.
Therefore, an advantage of franchising is that it can help the franchisor expand his or her business rapidly as it is often adopted by franchisor as a business expansion strategy.
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