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qaws [65]
3 years ago
5

Your company manufactures and sells tennis rackets and would like to start selling outside the United States. You are in charge

of developing a global Web strategy and the first countries you are thinking of targeting are Brazil, China, Germany, Italy, and Japan. 1. Using the statistics in the CIA World Fact Book, which of these countries would you target first
Business
1 answer:
RideAnS [48]3 years ago
5 0

Answer:

Germany

Explanation:

Tennis rackets are in a way, a luxury item that is only often bought by people who enjoy a middle-high, or high income. This is because Tennis as a whole tends to be an expensive sport to practice, since most tennis courts are located in private clubs, need to be rented for the practice, and the rest of the equipment associated with the sport: the footwear, and even the clothing, tends to be expensive as well.

For this reason, I would target a high income country first, and the most straightforward proxy to measure the average income of a nation is its GDP Per Capita, which is the GDP divided by the total population of the country.

According to the CIA Factbook, we have the following GDP Per Capita figures for the countries listed:

Brazil: $15,600

China: $18,200

Germany: $53,209

Italy: $38,200

Japan: $42,900

As a result, I would choose Germany, because it has the highest GDP per capita among the lot.

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On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as t
ValentinkaMS [17]

Answer:

An unrealized holding gain of $28 million in 2019.

Explanation:

At the financial year-end, the company have to reevaluate the investment to recognize the gain or loss.  

If the fair value is higher than actual investment, the company gain and vice versa it lost.

In this scenario, the fair value adjustment = the valuation on 31st December – purchased value = $150 million - $132 million = $28 million.

Because this step is just an approach to record new valuation of investment, then it’s consider unrealized.

In short, Phillips Corporation should first update the fair value adjustment of $28 million on December 31 2021

4 0
3 years ago
Suppose economies A and B have the same initial level of GDP per capita at $15,000, and each economy begins with a constant grow
Zinaida [17]

Answer:

If we made the assumption that both countries had a per capita of $15,000 in 1960, country A, which entered an era of political stability, and applied liberal reforms, growing at a rate of 5%, would double its GDP per capita by 1975, reaching a GDP per capita of $31,183.92.

On the contrary, country B, which continued to grow by 1% per year, would only double its GDP per capita by 2030, reaching a figure of $30,101.45.

Therefore, it would take 55 years more for country B to double its per capita GDP level compared to country A.

4 0
3 years ago
Cray Research sold a super computer to the Max Planck Institute in Germany on credit and invoiced €10 million payable insix mont
Reil [10]

Answer:

a) The expected loss from the forward hedging = $432,900

b) No I wouldn’t recommend hedging the euro receivable based on the fact that the future spot rate is better off than the forward exchange rate.  

c) No I wouldn’t because in any case whether you hedge or not there will be no difference.

Explanation:

Solution.

Forward Exchange Rate = $1.10/€, therefore the equivalent of €10 million receivable from Germany in 6-month time = €10 million / Forward exchange rate ($1.10) = $9,090,909

However, the 6 months spot rate is $1.05/€, therefore if we simply wait till 6 months we will receive €10 million / Forward spot rate ($1.05) = $9,523,809.

a) The expected loss from the forward hedging = $9,523,809 - $9,523,809 = $432,900

b) No I wouldn’t recommend hedging the euro receivable based on the fact that the future spot rate is better off than the forward exchange rate.  

c) No I wouldn’t because in any case whether you hedge or not there will be no difference. You’ll just end up paying hedging fees which will impact on profits adversely.  

However it is always advisable to hedge foreign exchange risks because predictions could differ from reality and adverse movements in exchange rates could carry significant financial consequences which may not be comparable to the hedging costs.

7 0
3 years ago
5. If an office makes equipment available in all offices and to all departments, then the firm is
maksim [4K]

True.......

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3 0
2 years ago
Read 2 more answers
Ahngram Corp. has 1,000 carton of oranges that cost $10 per carton in direct costs and $16.50 per carton in indirect costs and s
kow [346]

Answer:

The correct answer is D that is $33,500

Explanation:

The total cost for the oranges = Direct cost + Indirect cost

= (Number of carton × Rate per carton) + (Number of carton × Rate per carton)

= (1,000 × $10)  + (1,000 × $16.50)

= $10,000  + $16,500

= $26,500

Total Revenue = Number of carton × Selling price

= 1,000 × $30

= $30,000

Profit from oranges = Revenue - Cost

= $30,000 - $26,500

= $3,500

Profit or loss from from processing into the orange juice is computed:

Total Cost = Number of carton × Price

= 1,000 × $12.50

= $12,500

Revenue = Number of carton × Selling Price

=1,000 × $46

= $46,000

Profit or loss = Revenue - Cost

= $46,000 - $12,500

= $33,500

Therefore, Corporation has a profit of 33,500.

4 0
3 years ago
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