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3 years ago

Describe at least three risks a company might face if it participates in global trade.

Business

2 answers:

Yuri [45]3 years ago

7 0

Answer:

Explanation: Because of the complexes presented by global trade, a company that participated in it could face the following risks:

1. Risk in the transport of products: If the company markets products abroad, transport is a determining risk factor since there is usually a greater distance and there could be several inconveniences in the delivery of the products.

2. Customer dissatisfaction with the merchandise delivered since it could not be liked because the characteristics presented vary from those presented previously.

3. Risk in the use of international trade laws: This is one of the factors in which greater care is due, since each country has a different regulation and if it is not known, infraction could be committed.

AleksAgata [21]3 years ago

6 0

1. ignorance of laws/statutes/regulations in each country and communication issues

2. vulnerability of being a new entry in global competition

3. off-site business, finding trustworthy trade partners whom you've never met

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Extra information:

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When should you include your GPA on your résumé?

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Derivative suit is referred to as a law suit that is brought by the shareholder in behalf of the company against the third party.
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Treasury bills are currently paying 7 percent and the inflation rate is 3.2 percent. a. What is the approximate real rate of int

FromTheMoon [43]

Answer:

The real risk free rate is 3.8%

The exact risk-free rate is 3.68%

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The interest rate on the Treasury bills is usually a combination of real risk free rate and inflation rate to compensate investors for average inflation in the economy during the instrument lifetime which equals nominal risk-free rate.

nominal risk-free rate = real risk-free rate+inflation rate

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inflation rate=3.2%

real risk-free rate=7%-3.2%

real risk-free rate=3.8%

The exact real risk-free rate can be computed thus:

nominal rate+1=(real risk-free rate+1)*(inflation rate+1)

real risk-free rate=(nominal rate+1)/(inflation rate+1)-1

real risk free rate=(1.07/1.032)-1

real risk-free rate=0.036821705

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