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ankoles [38]
3 years ago
12

You are the CFO of a US firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operati

ons. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take
Business
1 answer:
PSYCHO15rus [73]3 years ago
8 0

Answer:

Explanation:

When the Peso depreciates by 30%, the firm can save money on the costs of production as the inputs would be less costly but the market for the firm in Mexico would be affected negatively as the depreciation of the peso would mean that now, the consumer can buy more goods with the same amount of money which will increase the demand. The loans that the subsidiary has taken would also be affected as it has to pay more for the collateral.

If the company reduces the inventory and stock the foreign receivables before the depreciation occurs to minimize the loss. Before the depreciation happens, the firm can convert the pesos denomination to the dollar so that its value doesn't fall.

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A $5 tax levied on the buyers of pants will cause the_______
otez555 [7]

Answer:

Option c. the demand curve for pants to shift down by $5.

Explanation:

Option C is the correct answer because tax levied on the buyer will increase the price of pants. Thus, as per the law of demand or law of demand states that there is an opposite relationship between the price of commodity and quantity demanded. The levied tax on the buyer will induce the buyer to demand less. Consequently, the demand curve shift downward.

4 0
3 years ago
The law of supply and demand relates to
Alex17521 [72]

<span>A. The relative price of goods and services. The law of demand and supply explains the interaction between the supply and demand of a resource. The law of demand states that if all things are equal, the higher the price the lesser (quantity) the demand for the goods/services. While the law of supply states that if all things are equal, the higher the price, the higher the (quantity) supply of goods/services.  </span>

3 0
3 years ago
In addition to their illegal methods of gaining land in Central America, what other mistake did the United Fruit Company make, w
trasher [3.6K]

The rapid spread of the banana fungus was caused by monocropping and not quarantining farm machineries and crops.

<h3>What is Quarantine?</h3>

This process involves the isolation of certain materials so as to prevent the spread of diseases.

This is important as it curbs the spread and ensures that large loss isn't recorded. In the case of the United Fruit company, it didn't happen which led to the proibelms faced.

Read more about United Fruit company here brainly.com/question/8749028

5 0
2 years ago
The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges $3995 to rent
notsponge [240]

For Q1, you have to set these equations equal to each other because it is asking how much of x is necessary to make the same amount of y, so:

3995 + 225.50x = 6500 + 100.25x

solve for x:, and get x=20

so 20 tons of sugar will give the companies the same cost.

For Q2: you need to plug in x=20 into either one of the original equations, and solve for y because this will give you the cost of transportation, so:

y= 3995 + 225.50(20)

y=$8,505 for the total cost

7 0
4 years ago
Good current economic conditions incent people to save _______, and a good outlook on future economic conditions incent people t
adelina 88 [10]

Answer:

More; Less

Explanation:

If there is a good current economic condition, people tend to save more and consume less at the present moment, because they don't know what the future holds (whether good or ugly ). They would have to save for the rainy days.

On the flip side, if there is good outlook on future economic conditions, people tend to save less because there is a better expectation of the future and they would rather consume more at the present.

3 0
4 years ago
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