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4 years ago

Why would a company choose to work through intermediaries when selling products in a foreign country?

Business

1 answer:

rewona [7]4 years ago

4 0

Answer:

It is a way of reducing the risk and cost of operating in a foreign country. They will avoid hassles involved in international distribution and would not need to develop distribution networks.

Explanation:

Companies often use local intermediaries when they want to sell products and run operations in a foreign country.

A major reason for this is to avoid the cost of developing distribution channel from scratch. The intermediaries already have the distribution network so it is an easier option.

Also local intermediaries have the know-how to operate in the foreign country. This includes knowledge on how to access resources cheaply, sourcing for low cost labour, and navigating the political environment.

Costs such as tariffs and custom duties paid dusting international distribution are also avoided by using local intermediaries.

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According to classical macroeconomic theory, changes in the money supply affect: _________.(i) nominal variables, but not real v

Stells [14]

Answer: .(i) nominal variables, but not real variables

Explanation:

According to classical macroeconomic theory, changes in the money supply affect the nominal variables but the real variable are not affected.

According to the classical macroeconomic theory, it us believed that an increase in money supply will result into a rise in the availability of money in the market, thereby increasing consumers spending which will also lead to a rise in aggregate demand which in turn, causes inflation.

Thereby the nominal variables will be changed.

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3 years ago

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notiﬁed management in December2018 of a circuit ﬂa

julsineya [31]

Answer:

Please see attachment .

Explanation:

Please see attachment .

Download pdf

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3 years ago

Can an isoquant ever slope upward? Explain. A. Yes. Where diminishing returns occur, the isoquant is upward sloping. B. Yes. I

alina1380 [7]

Answer:

B is the answer have a great day

Explanation:

6 0

3 years ago

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income

melamori03 [73]

Answer:

The company's stock price today should be $71.17 per share.

Explanation:

The corporate valuation model approach can be used to estimate this by using the following steps:

Step 1: Calculation of the free cash flow

Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:

Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure

For this question, we therefore have:

Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million

Step 2: Calculation of Value of operations (Vo)

Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million

Step 3: Calculation of the Firm value

Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million

Step 4: Calculation of value of equity

Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million

Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.

Step 5: Calculation of stock price per share today

Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share

Therefore, the company's stock price today should be $71.17 per share.

7 0

3 years ago

What is the market value of a stock that paid a dividend of $3.80 last year if the dividend is increasing at 10% annually and th

Papessa [141]

Answer:

The market value of the stock is $41.8

Explanation:

Div 1 = Div 0 (1+r)

=3.80 (1+0.10)

=3.80(1.10)

=4.18

Market value of the stock= Dividend 1 / (r-g)

= 4.18 / 0.2 - 0.1

= 4.18 / 0.1

= $41.8

The market value of the stock is $41.8

7 0

3 years ago