The second step in the problem solving process is to clarify the issues of a problem.
Answer: The second step.
The correct answer is false. It is because it is not true that there are only few exports that exist for U.S. firms to sell goods and their services to asian consumers as they are likely to expand their goods and services all throughout by which few exports doesn't seem to be true.
Answer:
sell 1.714
Explanation:
The computation of the number of contract buy or sold to hedge the position is shown below:
As we know that
Number of contracts = Hedge Ratio
Hedge Ratio = Change in Portfolio Value ÷ Profit on one future contract
where,
Change in the value of the portfolio is
For that we need to do following calculations
Expected Drop in Index is
= (1200 - 1400) ÷ 1400
= -14.29%
And, Expected Loss on the portfolio is
= Beta × Expected index drop
= 0.60 × (-14.29%)
= -8.57%
So, the change is
= 1000000 × (-8.57%)
= -$85,700
And, the profit is
= 200 × 250 multiplier
= 50,000
So, the hedging position is
= -$85,700 ÷ 50,000
= -1.714
This reflects the selling position
Answer:
The cash paid on May 8 is: $5,880
Explanation:
Credit terms of 2/10, net 30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
The company purchased $6,500 of merchandise on May 1. On May 6, it returned $500 of that merchandise.
The balance owed for merchandise = $6,500 - $500 = $6,000
On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to.
The company took the appropriate discount:
2% x $6,000 = $120
The cash paid = $6,000 - $120 = $5,880
Answer:
make the export of footwear from Asia-Pacific plants to Latin America less competitive and give rise to negative/favorable exchange rate cost adjustments.
Explanation:
Exchange rate is defined as the rate at which one currency can be exchanged with another. It determines balance of trade, that is the amount of one countrie's goods that can be exchanged for another one's.
When exchange rate causes Sing$ to be weaker versus than the Brazilian real, it results in more of the Sing$ used to purchase one Brazilian Real.
Export of footwear from Asia-Pacific plants to Latin America will be more expensive, so it will be less competitive.
