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Kay [80]
3 years ago
12

A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why do these investments by governments with

surplus cash flows worry trade experts?
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

Large firm can gain control of natural resources.

Explanation:

Investments by governements with surplus cash flows do worry trade expert as believe as investing in large firm by goverment will take away control of natural resouces by government and corporate will have more control on natural resources, sensitive technologies of nation and management control.

Generally, sovereign wealth funds (SWFs) is governement funded investment to improve economy and develop nation and it´s citizen, however, a fast-growing form of foreign direct investment is sovereign wealth funds will have adverse affect on country´s citizen and resources nation have.

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A banker is analyzing a company which operates in the automotive industry. Which of the following will likely be the banker's mo
Juliette [100K]

Answer:

A Banker's Analysis of an Automotive Company for Loan

Most important consideration in determining grant of loan:

c. The company has a large amount of interest payments related to other outstanding loans.

Explanation:

The large amount of interest payments related to other outstanding loans means that the automotive company is highly leveraged.  To grant a bank loan will have added leverage risk.

In analyzing the request for a loan, a bank should consider the borrowing company's credit history.  With so much in interest payments, the company has already borrowed heavily.  The banker should consider the application of the past debts.  Were they used in investments or for working capital purposes or to repay liabilities and shareholders.

The banker also needs to review the cash flow history with line with the above, to know how the past debts have been applied, as already stated above.  In reviewing the cash flow history, the projections of the company should be tested for sustainability.  "Has the company been meeting its past projections?" is a relevant question to understand.#

Lastly, the banker should also consider the existence of collateral for the loan, especially given that the company is highly leveraged.  Are there unencumbered assets that can serve as collateral in case of default?

7 0
3 years ago
You and the other shoe store owners decide to fix your shoe prices at $60 a pair in order to maximize your profits. This is call
igomit [66]
Is called collusion

It's actually price collusion to be precise ( not to be mistaken for the crime collusion)

Often time, to attract customers, sellers will offer a lower price than their competitor. Though it may attract more customer, it will lower their profit.

In price collusion, all sellers is guaranteed to have same product price and profit margin, creating a perfect competition market for that product
6 0
3 years ago
Read 2 more answers
Cully Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100
KATRIN_1 [288]

Answer:

$45,000

Explanation:

Cully's storage constraint is: 100B + 90M ≤ 18000

If Cully were to buy only big shelves, it could buy 180 of them (= 18,000 / 100)

If they were to buy only medium shelves, it could buy 200 (= 18,000 / 90)

Cully's money restraint is: 500B + 300M ≤ 75,000

If Cully were to buy only big shelves, it could buy 150 of them (= 75,000 / 500)

If they were to buy only medium shelves, it could buy 250 (= 75,000 / 300)

So Cully's order must be within 150 big shelves and 200 medium shelves.

If Cully purchases and sells 150 big shelves, it will earn $45,000 in profit.

If Cully purchases and sells 200 medium shelves, it will earn $30,000 in profit.

Since the profit for big shelves is $500, Cully should try to sell as many of them as possible. The maximum amount that they can buy is 150, which will result in a $45,000 profit.

8 0
3 years ago
Suppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed will (Hint: use what you
s344n2d4d5 [400]

Consumer income has no correlation with the equilibrium price of a product. Thus the price will c. Not change

Explanation:

When the consumer income increases, they will be able to buy a product more if they require it and if they do not require it they are able to spend that money or save it up as they please to.

As equilibrium price of a product is completely dependent upon supply and demand correlation.

The income of the consumer has little to do with it unless a relation between increased income and increased demand is established, there is little evidence to show that there will be a fluctuation in the prices of the grass seed in this case.

3 0
3 years ago
Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10
Anettt [7]

The price of the new bonds given the face value and interest rate is $8,928.57.

<h3>What is the price of the bonds?</h3>

Bonds are debt instruments issued by a firm with the purpose of raising capital to carry out projects. The price of the bonds can be determined by discounting the face value of the bonds by the interest rate.

The price of the bonds = face value of the bonds / ( 1 + interest rate)

$10,000 / (1.12) = $8,928.57

To learn more about bonds, please check; brainly.com/question/8917277

6 0
2 years ago
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