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enyata [817]
3 years ago
9

An alternative to using a letter of credit is export credit insurance. What are the advantages and disadvantages of using export

credit insurance rather than a letter of credit for exporting (a) a luxury yacht from California to Canada and (b) machine tools from New York to Ukraine?
Business
1 answer:
Agata [3.3K]3 years ago
3 0

Answer:

Read the explanation below.

Explanation:

A. Luxury yatch: Not a lot of people buy Yactchs, but a lot of businesses are capable of making them. So more or less the buyer is in position to dictate terms. And asking the buyer to open a letter of credit may result in the loss of sale.

But to protect against the risk of losing payment, the seller can opt for export credit insurance. Here on advantage of export credit insurance is the exporter is more likely to make the sale in a competitive market such as this. If there is a default, the insurance should cushion the blow. However, Canada and California are not known for opaque or radically different legal systems, are not far away, and do not have linguistic or other barriers. In the event of default, the yatch is likely to be returned.

b. Machine tools. Again, one advantage is that the new yorker exporter is more likely to make the sale. The exporter's position however is strong due to the fact not lot of people make machine tools as the are hard to make and have a higher fixed costs.

Thus, letter credit is the most viable option in this case.

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A "Name That Tune" contest has a grand prize of $500,000. However, the contest stipulates that the winner will receive just $200
Alexxx [7]

Answer:

The correct answer is (C) $401,302

Explanation:

To get how much the contest winner actually won, we have to calculate the amount receive at the end of each year discounted at this moment. Then,  we added  all the payments.  

For example, the first payment in  $200,000 at this moment,  so we add  $200,000.  

At the end of the first year we receive $30,000, and the rate of discount is 8%

The formula of discount is P=A/ (1+r)ⁿ

A=Final amount  

P= Principal

r= interest rate

n= time

Year 1 = A/ (1+r)ⁿ =$30,000/1,08¹= 27777,77

Year 2 =$30,000/1,08²= 25720,16

Year 3=23814,96

Year 4=22050,89

Year 5=20417,49

Year 6=18905,08

Year 7=17504,71

Year 8=16208,06

Year 9=15007,46

Year 10=13895,80

 

Total  401302,44

3 0
3 years ago
Suppose you deposit $116 today, $135 in one year, and $885 in two years in an account that pays an annual rate of interest of 14
olga nikolaevna [1]

Answer:

The answer is $1357.85

Explanation:

Future value= Σ C(1+i)^n

FV = 116(1.141^3) + 135( 1.141^2) + 885(1.141) = $1357.85

7 0
3 years ago
The marginal physical product of labor is Group of answer choices the slope of the total output curve at the relevant point. the
VladimirAG [237]

Answer:

The slope of the total output curve at the relevant point.

Explanation:

A marginal physical product can be defined as the extra output which is being generated by using an extra input. This ultimately implies that, marginal physical product of labor refers to the change in the level of output that is generated from using an additional unit of labor.

Mathematically, marginal physical product of labor is given by the formula;

Marginal physical product of labor = ΔY/ΔL

Where, ΔY is the change in total physical output.

ΔL is the change in labor.

In the short run, when the number of workers are increased it would result in a diminishing marginal product with respect to the law of diminishing marginal returns.

The marginal physical product of labor is the slope of the total output curve at the relevant point.

<em>For instance, if brainly producing 50 answers decides to employ one more tutor and is then able to produce 55 answers, the marginal physical product of labor is simply 5. </em>

6 0
3 years ago
Tony works at an auto assembly plant for a U.S. auto manufacturer. He manages a group of employees who measure the quality of pa
Pani-rosa [81]

Answer:

The correct answer is:  supply chain management.

Explanation:

Supply chain management is the cumulative network of people, entities, activities, information, and resources involved in moving raw materials, components and finished products from original suppliers to end-users. Supply chain management is crucial for most companies and can involve hundreds of links at large corporations, thus it requires considerable skill and expertise.

7 0
4 years ago
Zeus wanted to convey Mount Olympus to Artemis, Ares, Aphrodite, and Athena in equal shares. On July 1, he saw Artemis, Aphrodit
dsp73

Answer:

Joint Tenancy

Explanation:

Each tenant was given an equal share.

The conveyance deed was completed on a specific date passing all the land fairly to all tenants.

The Hera, Aphrodite, Athena and Ares also bear the title of Mutual Tenancy as Zeus transmitted Mount Olympus to them.

Therefore the correct option is Joint Tenancy and the same is to be considered

3 0
3 years ago
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