Do you know about methods of payment in international trade? Payment is critical for every business. However, payment for international transaction is quite different from obtaining money from local sources. Some additional layers of influences may be observed with the international trade. Certain amount of risk has been associated with the international trade. Therefore, exporters… Read More »
What is Trade acceptance? Contractual agreement connected to a sight draft or time draft is considered as an acceptance that is utilized for the payment of dues within specified date. If a party has to pay for the draft then it is necessary to write an acceptance. It can be referred as “accepted” also. Signature… Read More »
Systematic Risk vs Unsystematic Risk Risk Analysis in Capital Budgeting Diverse ranges of risks are present in the process of investment. In case the capital is lost completely then you may have come across at high amount of risk. To eliminate the risk from the process of investment, you must go with an investment risk… Read More »
Difference between Sunk Cost and opportunity Cost Basically, sunk cost is money that has been spent already. On the other hand, opportunity cost is certain amount of money from which you are not able to get returns. Due to investment of capital inappropriate manner, return is not received. Sunk Cost Example If 1000 shares are… Read More »
Sunk Cost Vs Opportunity Cost Due to confusion in finance related issues, you can be stuck at one point for extended amount of time. It is certainly not a good thing. Difficulty is often faced in order to move forward. Therefore, few factors must be looked at before taking a decision on the occasion. According… Read More »
If exporter will have to deal with a new importer which payment method would he prefer and why? In cases where exporters are dealing with importer very first time,
Consignment vs Open Account payment Method In Case of Trusted Importer which payment method would you choose from consignment and open account and why? In case of trusted importer, I would prefer to choose Open Account payment method rather consignment for following reasons:
Difference between Letter of Credit and Drafts Difference between two payments methods of international trade – Letter of credit and Drafts are given below:
Licensing agreement vs Acquisition Associated Risks and Returns What are Potential risk and return associated with a licensing agreement with a foreign firm, and the acquisition of a foreign firm? A licensing agreement has restricted potential for return, as the foreign firm gets more benefits due to the licensing agreement. However, the MNC has restricted… Read More »
International Markets: Market Entry Strategies: Foreign subsidiary company When a local company is partially or wholly owned by a larger company situate in a foreign country, it is said to be a foreign subsidiary company. Such companies are held by parent companies under the laws of the host country.