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Olenka [21]
2 years ago
5

one reason a company might prefer FDI over exporting. presence or threat of trade barriers costs of acquiring a foreign enterpri

se costs of establishing production facilities in a foreign country risk of giving away valuable technological know-how to a potential foreign competitor possibility of diminishing returns
Business
1 answer:
kkurt [141]2 years ago
8 0

Answer:

Presence or threat of trade barriers

Explanation:

If a company sees that a specific country has a presence or threat of trade barriers, the company will prefer to invest directly in foreign companies, instead of exporting.

This is because trade barriers, like tariffs or import quotas, will likely reduce the potential revenue that the company would get from exporting. It could reduce revenue so much as to make the company lose money.

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22) One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S
saw5 [17]

Answer: C) $1.04/C$1

Explanation:

We define the inflation rate in a certain country as

  • a rate at which the value of a currency is falling
  • as a result the usual level of prices for goods and services keeps rising.

1 year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1.

That time inflation rate in US was 4% greater than in Canada.

So, the  current spot exchange rate of U.S. dollars for Canadian dollars :

($1 + 4% of $1)/C$1

=($1+$0.04)/ C$1

=$1.04 / C$1

Hence, the correct option is C) $1.04/C$1

6 0
3 years ago
On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature
Sauron [17]

Answer:

The bonds were issued at $87,590,959

Explanation:

The bonds will be issued at the present value of the coupon and maturity discounted by the market rate

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 6,000,000.000 ( 100 million x 6%)

time 30 (2051 - 2021)

market rate 7% = 7/100 = 0.07

6000000 \times \frac{1-(1+0.07)^{-30} }{0.07} = PV\\

PV $74,454,247.1010

PV of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   100,000,000.00

time   30.00

rate  0.07

\frac{100000000}{(1 + 0.07)^{30} } = PV  

PV   13,136,711.72

Total current value of the bonds:

PV coupon  $ 74,454,247.1010

PV maturity  $<u>  13,136, 711.7155 </u>

Total             $87,590,958.8165

8 0
2 years ago
As of March 12, 2020 the yield to maturity on 30 year US Treasury Bonds was 1.44%. On the same date, the yield to maturity on 30
noname [10]

Answer:

The forecast inflation rate is implied by these interest rates is 1.13%

Explanation:

when dealing with inflation, we have that:

(1 + nominal interest rate) = (1 + real interest rate) * (1 + inflation rate)

                              1.0144 = 1.0031 * ( 1 + inflation rate)

                   inflation rate = 1.0144/1.0031 - 1

                                         = 1.13%

Therefore, The forecast inflation rate is implied by these interest rates is 1.13%

7 0
3 years ago
Mullin, InC., purchases supplies such as paper towels, soap, toilet paper, and seat covers directly from manufacturers and then
coldgirl [10]

Answer:

wholesaler

Explanation:

A wholesaler is part of the downstream supply chain. It operates by purchasing large amounts of certain goods and then reselling them to smaller retailers. Wholesalers act as intermediaries between small retailers that are unable to purchase large amounts from manufacturers, but still need to purchase them at a discount price. Generally, wholesalers do not sell directly to the general public, only to other smaller businesses.

7 0
2 years ago
aner, Harris &amp; Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm ha
NeX [460]

Answer:

1. $ 136,500

2. $70000

3. Medical market

Explanation:

1. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the MEDICAL MARKET

First is to calculate the sales

Sales = (400 000 + 70 000)

Sales = $470 000

Second step is to calculate the profit

Variable cost =$470 000 *65%

Variable cost=$305 500

Contribution =$470 000*35%

Contribution =$164,500

Fixed Expense= $28 000

Profit = $ 136,500

Now let calculate the Difference made by advertisement

Difference = 136500 - 120000

Difference=16500

2. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the

DENTAL MARKET

vcr Of The Dental market = 50%

Variable cost =50% $260 000

Variable cost = $130 000

Contribution = $130 000

Fixed expenses = $60 000

Profit = $70000

Now let determine difference made by the advertisement

Difference =(70000) - 48000

Difference= 22000

3. Based On the above calculation the markets I would recommend that the company focus its advertising campaign is medical market

8 0
2 years ago
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