The interest rate, which fluctuates more: short-term interest rate or long-term interest rate. Introduction: Short-term interest rate: The interest rate, which applies on the securities and which has the short maturity period of less than a year is known as the short-term interest rate. Long-term Interest Rate: The interest rate, which applies on the securities and which has the long maturity period of more than one year is known as the long-term interest rate.

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Duncan Company is a large manufacturer and distributor of cake supplies. It is based in United Kingdon (Headquarters) It sends supplies to firms throughout the United States and the Caribbean . It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can make orders over the phone and Duncan ships the supplies upon demand.The main competition for Duncan’s comes from one U.S. firm and one Canadian firm. Another British firm has a small share of the U.S. market but is at a disadvantage because of its distance. The British firm’s marketing and transportation costs in the U.S. marketare relatively high.a) Duncan Company plans to penetrate either the Canadian market or two other Caribbean Countries (Jamaica and Haiti). What factors deserve to be considered in deciding which market is more feasible? I NEED PROPER REFERENCES IN THE ANSWER AND A VERY DETAILED AND RESEARCH ANSWER.

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Question

Chapter 6, Problem 2Q

Summary Introduction

To identify: The interest rate, which fluctuates more: short-term interest rate or long-term interest rate.

Introduction:

Short-term interest rate:

The interest rate, which applies on the securities and which has the short maturity period of less than a year is known as the short-term interest rate.

Long-term Interest Rate:

The interest rate, which applies on the securities and which has the long maturity period of more than one year is known as the long-term interest rate.

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