time draft makes sure that the exporter will be paid in a timely manner. This instrument is ideal for international contracts that are not easy to enforce and involve more risks than domestic contracts. True False If false, give the good answer:

Q: Explain how a firm can hedge its translation exposure.

A: Exposure for translation occurs as MNC converts the financial details for consolidated financial…

Q: Goodwill can be recorded:   1. whenever the company acquires a good location for its business. 2.…

A: Goodwill is an intangible asset that is associated with the purchase of one company by another. It…

Q: If the net present value associated with extending trade credit to a customer is positive, the…

A: The NPV or Net Present value is the present value of net inflows associated with the project or…

Q: Hedging translation exposure with forward contracts can backfire if the currency being hedged…

A: The answer and the explanation can be seen below:

Q: 8) Which of the following is a drawback of decentralizing a multinational company A) It may lead to…

A: Decentralisation means transfer of control of an activity or organization to several local offices…

Q: What are the differences in accounting for a forward contract used as a fair value hedge of (a) a…

A: Forward contract:   Forward contract is the contract entered by two private parties to buy or sell a…

Q: What is over-the-counter (OTC) trade?

A: It is an electronic communications network which permits the investors to sell and buy the stocks.…

Q: How can Firms that do not want to become involved in licensing or to become heavily involved in…

A: Contract manufacturing is the process through which a small business or entity hires another company…

Q: Explain how a company can use forward contracts to eliminateFX risk

A: Introduction: A forward contract is a contact between two parties regarding the future selling price…

Q: Multinational management commonly do NOT fully understand: a. institutions, history and culture. b.…

A: Multinational management is all about managing a company or an entity or an enterprise in different…

Q: Identify the correct guideline related to performance security. Performance security should be…

A: The  performance security is the guideline instruction that is required for providing performance…

Q: The short-term loan that are given to importers and exporters are known as; a. Re-purchase agreement…

A: When the payment is a guarantee by the banks rather than the account holders it is referred as the…

Q: t contract is defined as: a. An agreement involving the exchange of an asset for cash at a fixed…

A: There are many types of contracts that are possible based on the payment term and settlement terms…

Q: Which of the following statements in relation to GST are correct?   a. Imports do not attract GST…

A: Goods and services tax is the tax on the commodities and services to be given to the consumers. It…

Q: Which of the following is not a feature of a clearing house: A. It is used to reduce counter party…

A: Clearing house is an intermediary which settles the transactions between traders.

Q: s generally easier to hedge translation currency exposure than single transaction currency exposure.…

A: Step 1 Hedging foreign currency exposure  can protect a company with international operations…

Q: The impossible trinity implies which of the following three together are not possible?

A: As per Impossible trinity concept, following can not be possible at the same time: 1. A fixed…

Q: Explain how documents or drafts method is the most less risky method of making trade payments

A: Draft method of trade payments is a type of exchange money in which an exporter is paid for its…

Q: Which of the following is not among the advantages of international trade? * O Increased competition…

A: International trade means where one country can sell goods in another country.

Q: If the net inflow of one currency is about the same amount as a net outflow in another currency, the…

A: Transaction exposure can be measured by calculating the impact of changes in foreign exchange rates…

Q: In the context of foreign exchange, how are non-deliverable currency situations typically handled?…

A: In the realm of foreign exchange trading, it's not uncommon for investors to encounter scenarios…

Q: Which of th

A: The forecast may also be done about the cash balance in hand the organization forecasts to keep and…

Q: What are the requirements that are needed in England and France for an enforceable contract to…

A: An enforceable contract is a legally binding agreement between two or more parties that contains all…

Q: Interstate reciprocal agreements a.  are developed to avoid paying SUTA. b.  will not allow an…

A: The correct answer is Option (c).

Q: When does the delivery of goods happen in Salam Contract? 1- In the future 2-It is…

A: The contract of salaam requires all of the conditions of a normal sale contract except that it does…

Q: There are as many different approaches to foreign exchange transaction exposure management as there…

A: Foreign exchange exposure Anyone who conducts transactions in many currencies or conducts business…

Q: discuss the prospects and consequences of trade protection, citing relevant and recent examplesI)

A: For the purpose of increase and decrease in the trade activities of the country, the implementation…

Q: What does Accounting harmonization mean? Differentiate harmonization from convergence or adoption.…

A: Answer:- IFRS meaning:- A group of accounting standards called international financial reporting…

Q: A firm decides to sell a pool of receivables to a factor with recourse (i.e. the firm selling the…

A: Receivables are debt owned by the company which is yet to be paid and these are reported in the…

Q: That export prices always increases and import prices always fall ensure that a. all of the choices…

A: Imports is defined as the outflow of the funds with an exchange of goods or services from the…

Q: Discuss the VAT regime in Trinidad and the impact of VAT on the country’s economy. Answer should…

A: VAT-Value-added tax (VAT) is a flat tax levied on an item. It is similar to a sales tax in some…

Q: What determines the cost of the parcels service?

A: As anybody in the cargo business knows, delivering rates change generally. Despite the fact that…

Q: Your business may be at risk if: Select one: a. All of these b. An important contract does not…

A: Risk is a condition or circumstance where it can hamper the business of the company or may give an…

Q: True or false, and explain: It is risky to operate multinationally, so it is not always wise to…

A: The above statement is false, it is risk to operate multinational but when the proper measures are…

Q: Revenue recognition poses significant challenges for companies, stemming from the intricate nature…

A: Effectively addressing the challenges associated with variable consideration in revenue recognition…

Q: Able Equipment entered into an arrangement to provide M. T. Bin Wholesale’s data center with Able’s…

A: Lease:   It is an agreement between the owner of an asset and a tenant where the owner agrees to…

Q: Under what pricing conditions is transfer pricing considered to be legal?

A: Transfer pricing means the pricing of goods or services that are bought or sold between members of…

Q: Discuss the features that differetiateorganised exchanges from the over-the-counter market

A: the question is based on the concept of stock exchange trading mechanism and over the counter…