Question

In: Economics

A firm based in California wants to export a shipload of finished lumber to the Philippines....

A firm based in California wants to export a shipload of finished lumber to the Philippines. The would-be importer cannot get enough credit from domestic sources to pay for the shipment but insists that the finished lumber can quickly be resold in the Philippines for a profit. Outline the steps the exporter should take to successfully export this product to the Philippines and make a profit? How might a company make strategic use of countertrade schemes as a marketing weapon to generate export revenues? What are the risks associated with pursuing such a strategy?

Solutions

Expert Solution

Rahul Sunny answered 8 months ago
Next > < Previous

Related Solutions

Part II: Transfer Pricing Pacific Northwest Lumber has two divisions: Raw Lumber and Finished Lumber. The...
Part II: Transfer Pricing Pacific Northwest Lumber has two divisions: Raw Lumber and Finished Lumber. The variable costs incurred in each division are as follows: Raw Lumber: VC $15 per 20 feet of raw lumber Finished Lumber: VC $15 per 20 feet of finished lumber Assume that footage of lumber is not lost when raw lumber is processed to finished lumber. Market prices for the products are: $35 for 20 feet of raw lumber $55 for 20 feet of finished...
Syarikat Sabah prepares lumber for companies who manufacture furniture. (a) The main product is finished lumber...
Syarikat Sabah prepares lumber for companies who manufacture furniture. (a) The main product is finished lumber with a byproduct of wood shavings. The byproduct is sold to plywood manufacturers. For July, the manufacturing process incurred RM332,000 in total costs. 80,000 board feet of lumber were produced and sold along with 6,800 kg of shavings. The finished lumber sold for RM6.00 per board foot and the shavings sold for RM0.60 a kg. There were no beginning or ending inventories. Required: Prepare...
An American pharmaceutical firm wants to export to UK without violating the Anti-Dumping statute. Given the...
An American pharmaceutical firm wants to export to UK without violating the Anti-Dumping statute. Given the following data, what is the minimum price that the firm has to charge to UK consumers? Show the arithmetic. Fixed Cost: $600,000 Variable Cost: $10 Total Weekly Manufacturing Capacity: 50,000 units US Domestic Sales: 25,000 units US Domestic Price: 20 per unit Number of units to be sold in UK: 25,000 units
Godcare, an insurance firm based in California, had difficulties expanding their operations to Asian markets as...
Godcare, an insurance firm based in California, had difficulties expanding their operations to Asian markets as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with its branches in other countries. Which of the following barriers is most likely to have affected the services of Godcare in the given scenario? Protectionism Control...
1) Syarikat Sabah prepares lumber for companies who manufacture furniture (a) The main product is finished...
1) Syarikat Sabah prepares lumber for companies who manufacture furniture (a) The main product is finished lumber with a byproduct of wood shavings. The byproduct is sold to plywood manufacturers. For July, the manufacturing process incurred RM332,000 in total costs. 80,000 board feet of lumber were produced and sold along with 6,800 kg of shavings. The finished lumber sold for RM6.00 per board foot and the shavings sold for RM0.60 a kg. There were no beginning or ending inventories. Required:...
You are part of the board of directors of H&M based in the Philippines. Revenue is...
You are part of the board of directors of H&M based in the Philippines. Revenue is dropping in the first quarter of the year due to high production costs. Your task is to come up with a solution to lower the cost of production while simultaneously maintaining the same price point and expanding other markets all over the country You may want to take into consideration the following theme: - Branch Location: - Worker compensation: - Consumer location:
An american firm, XE inc, intends to export defence software to a firm in Taiwan. The...
An american firm, XE inc, intends to export defence software to a firm in Taiwan. The export value is in Taiwan's currency (NT$). The agreement is subject to the U.S authority's approval. Explain option strategies, based on the Taiwan currency, that the firm at risk can use to hedge its risk exposure.
Assume firm A wants to borrow float while firm B wants to borrow fixed. Firm A...
Assume firm A wants to borrow float while firm B wants to borrow fixed. Firm A is offered 10% fixed borrowing cost and LIBOR + 0.3% float borrowing cost while firm B is offered 11.2% fixed borrowing cost and LIBOR + 1% float borrowing cost. (a) Show how the two firms can reduce their borrowing costs equally by entering into an interest rate plain vanilla swap? Use a table to demonstrate your solution (b) If the agreed-upon notional amount is...
Assume firm A wants to borrow float while firm B wants to borrow fixed. Firm A...
Assume firm A wants to borrow float while firm B wants to borrow fixed. Firm A is offered 10% fixed borrowing cost and LIBOR + 0.3% float borrowing cost while firm B is offered 11.2% fixed borrowing cost and LIBOR + 1% float borrowing cost. Show how the two firms can reduce their borrowing costs equally by entering into an interest rate plain vanilla swap? Use a table to demonstrate your solution If the agreed-upon notional amount is $100m (no...
Assume firm A wants to borrow float while firm B wants to borrow fixed. Firm A...
Assume firm A wants to borrow float while firm B wants to borrow fixed. Firm A is offered 10% fixed borrowing cost and LIBOR + 0.3% float borrowing cost while firm B is offered 11.2% fixed borrowing cost and LIBOR + 1% float borrowing cost. (a) Show how the two firms can reduce their borrowing costs equally by entering into an interest rate plain vanilla swap? Use a table to demonstrate your solution (b) If the agreed-upon notional amount is...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT