For what reason might an exporter use standard international trade documentation (letter of credit, draft, order bill of lading) on an intrafirm export to its parent or sister subsidiary?
Answer to relevant QuestionsThe key to understanding most theories is what they say and what they don’t. What are four or five key limitations to the theory of comparative advantage? China’s domestic price is 10 containers of toys equals 7 cases of wine. Assume China produces 10,000 containers of toys and exports 2,000 to France. Assume France produces 7,000 cases of wine and exports 1,400 cases to ...How would a high degree of leverage (debt/assets) be viewed by the shareholder wealth maximization model compared to the stakeholder wealth maximization model? What reasons can you give for the observation that intrafirm trade is now greater than trade between nonaffiliated exporters and importers? List the steps involved in the export of computer hard disk drives from Penang, Malaysia, to San Jose, California, using an unconfirmed letter of credit authorizing payment on sight.
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