<span>A lack of trust between two parties engaged in international trade is exacerbated by the </span><span>problems of using an underdeveloped international legal system to enforce contractual obligations. When a strong internal legal system is put place, there is a better chance for trust to be held in trading. When doing international trade both parties need to understand their roles and responsibilities and hold up to the end of the deal. Without trust it's likely the two countries will stop trading with one </span>another.
Answer: i would say physical presence or abstract
Answer:
PV= $1,521,531.53
Explanation:
Giving the following information:
Future value= $1,700,000
Number of periods= 1 year
Interest rate= 11%
<u>To calculate the initial value of the loan, we need to use the following formula:</u>
PV= FV/(1+i)^n
FV= future value
n= number of periods
i= interest rate
PV= present value
PV= 1,700,000/1.11
PV= $1,521,531.53
George Stigler is a known American economist and according to his theory the Consumer theory, he quoted that <span>“if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.” This means that when consumers do not purchase a certain product even if their incomes increases, that is considered normal, but when the product increases in value, we can expect that these consumers will buy less of the product.</span>
Answer:
1. What is the net working capital for the above company?
Net Working Capital will be 45
2. If the company pays back all of its accounts payable today using cash, what will its net working capital be (in million of USDs)?
Net Working Capital will be 45
3. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be (in million of USDs)?
Net Working Capital will be -1
Explanation:
1.
Net Working Capital = Total Current Asset - Total Current Liabilities
Net Working Capital = 89 - 44 = 45
2.
Current Asset after payment = 89 - 39 = 50
Current Liabilities after payment = 44 - 39 = 5
Net Working Capital = Total Current Asset - Total Current Liabilities
Net Working Capital = 50 - 5 = 45
3.
Current Asset after Purchase = 89 - 46 = 43
Current Liabilities after Purchase = 44 - 0 = 44
Net Working Capital = 43 - 44 = -1
