An exporter is looking to ship product to a buyer in the UK on open terms. What insurance product should they consider and why? (5 points)

Q2: When conducting an analysis for a medium term financing transaction, what's the most important element to consider of the following: Liquidity Analysis, Profitability Analysis, Leverage Analysis? Why? (5 points)

Q3: You have been approached by Company Electronic Mfg Corp. (EMC), an electronics manufacturer. Time has passed since your Mid-Term examination and they want to come back and request financing support. You're working for EDC, an Export Credit Agency, and you've been asked to analyze their statements and determine whether you'll provide support.Please explain the reasoning for your decision. Refer to Appendix A for financial details. (15 points)

Opportunity: EMC has won a sales contract with a French distributor in France. They expect to have $20M in sales annually from this distributor, but will be required to set-up a warehouse in France and hold inventory there. The warehouse will cost $2M per year, and they must hold $3M in inventory in order to service French clients. They want a $15M term loan over 3-years to support the expansion.

Q4: What is the Berne Union and what role do they play in international trade? (10 points)

Q5: Your company ABC Corp is looking to open up a power plant in Turkey. You'll be paid in local currency, what can you do to manage Foreign Exchange risk? (5 points)

Q6: Your Company, Bombardier, is going to enter into a Joint Venture with Aeroflot, the Russian-owned airline where you'll be providing critical aircraft components. You've been asked to invest $100M into the venture, what Political risk is the most concerning and how will you mitigate it? (5 points)

Answer rating: 100% (QA)

Q1 The exporter should consider purchasing trade credit insurance This type of insurance protects the exporter against the risk of nonpayment by the b... View the full answer