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3 years ago

1. Why do companies frequently expand their business operations into other countries?

Business

1 answer:

fgiga [73]3 years ago

5 0

International business laws make it profitable for big businesses to operate in multiple countries.

Explanation:

1. Companies expand their operations to other countries when either the production cost, labor cost or tax rates are lower in the other county and makes overall business more profit.

2. Other countries often provide tax exemptions to investors to set up in their countries which is very profitable. It also opens new avenues and markets worldwide, attracting more clients and costumers.

3. International business makes products from different parts of the world into the regular life of people in open market countries.

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In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate bar

Elanso [62]

Option B, In a(n) , common market members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

A legal agreement that creates a collection of nations that adopt a single external policy tariff is known as a common market. Countries that participate in a single market also permit free commerce as well as the free movement of capital and labor within the group's members. It establishes a common external tax on imports in the market. Members of this market thus do away with trade restrictions and embrace or adhere to a common policy.

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6 0

1 year ago

You need $20,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like

Serga [27]

Answer:

The annualy payment for theamortized loan is $6,802.44

Explanation:

First we will find the total loan payment TP for the $20,000 borrowed over the next four years with a annual return of 8%:

TP = $20,000 *(1+8%)^4

TP = $20,000 *(1.08)^4

TP = $20,000 *1.3605 = $27,209.7

The annual payments AN is obtained by dividing the TP into the 4 years:

AN = $27,209.7 / 4 = $6,802.44

4 0

3 years ago

Consider a family who borrows $250,000 to purchase a new home at a fixed interest rate of 8.5%. If inflation increases from 4% t

vitfil [10]

The home loan must be repaid at a real interest rate of 3%; (8.5%-5.5%=3%).

<h3>Real interest rate </h3>

A real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal interest rate refers to the interest rate before taking inflation into account.

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2 years ago

LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to

VladimirAG [237]

Answer:

$739.72 ≈ 739.72

Explanation:

we can use an excel spreadsheet and the present value function to calculate the expected price of each bond ⇒ =PV(rate,nper,pmt,fv,[type])

fv = $1,000
pmt = $1,000 x 7.25% x 1/2 = $36.25
nper = 60
rate = 10% / 2 = 5%
present value = ?

=PV(5%,60,36.25,1000) = -739.72 since excel calculates the initial investment, it is always negative, so we just change the sign.

6 0

3 years ago

Sibila, Inc. sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering

Ahat [919]

Answer:

c. It will increase.

Explanation:

Break even point is the level of activity at which a firm neither makes a profit nor a loss.

Break - even units = Fixed Costs ÷ Contribution per unit

therefore,

Existing break-even point in units :

Break - even units = $16,000 ÷ ($40 - $18) = 727.27 or 728 units

New break-even point in units :

Break - even units = $21,000 ÷ ($40 - $16) = 875 units

Conclusion :

The results show that break-even point in units will increase from 728 units to 875 units as a result of the changes

8 0

3 years ago