Various governments have established agencies to insure against nonpayment for exports and/or to provide export credit. This shifts credit risk away from private banks and to the citizen taxpayers of the country whose government created and backs the agency. Why would such an arrangement be of benefit to the citizens of that country?
Answer to relevant QuestionsDefine and explain the theory of comparative advantage. Assume complete specialization, where China produces only toys and France produces only wine. What would be the effect on total production? They assume that China and France each have 1,000 production units. With one unit of ...A leveraged buyout is a financial strategy in which a group of investors gain voting control of a firm and then liquidate its assets in order to repay the loans used to purchase the firm’s shares. How would leveraged ...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? Why would an exporter insist on a confirmed letter of credit?
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