Question

In: Finance

Nukee, a United States shoe manufacturer and retailer, established two retail outlets in the city of...

Nukee, a United States shoe manufacturer and retailer, established two retail outlets in the city
of Shenzen, China, which has a population of 3.7 million. These outlets are massive and contain
products purchased locally as well as imports. As Nukee generates earnings beyond what it
needs in Shenzen, it may remit those earnings back to the United States. Nukee is likely to
build additional outlets in Shenzen or in other Chinese cities in the future.

Explain how Nukee might utilize the international money market when it is establishing
other Nukee stores in Asia?

Solutions

Expert Solution

Nukee can use International money market in following ways-

A. International money market can help the company financing various trades because it will be helping to generate finance through bills of exchange.

B. international money market will be providing the company with the short term funds and it will help in financing their capital requirement for working capital and it will help in discounting bills through commercial banks and discount houses and brokers and acceptance houses.

C. International money market will be helping the company in order to have access of financial mobility as it will be easier for the company to transfer various funds from different sector to sector and place to place.

D. International money market will also be offering liquidity and safety while dealing with the transaction because it will be promoting high level of liquidity and safety and it will be encouraging savings and investment for the company.

E. International money market will be helpful in reduction of the use of the cash because money market will be mostly dealing with the assets which have high liquidity so the company will be reducing the use of the cash money and it will also be safer to move from one place to another place.

F. It will help the company in order to implement the monetary policy of the country in a better manner because the company can synchronise this policy with the monetary policy through having access to the international money market.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Nukee, a United States shoe manufacturer and retailer, established two retail outlets in the city of...
Nukee, a United States shoe manufacturer and retailer, established two retail outlets in the city of Shenzen, China, which has a population of 3.7 million. These outlets are massive and contain products purchased locally as well as imports. As Nukee generates earnings beyond what it needs in Shenzen, it may remit those earnings back to the United States. Nukee is likely to build additional outlets in Shenzen or in other Chinese cities in the future. Explain how Nukee could use...
Complete Computer (CC) is a retailer of computer equipment in Minneapolis with four retail outlets. Currently...
Complete Computer (CC) is a retailer of computer equipment in Minneapolis with four retail outlets. Currently each outlet manages its ordering independently. Demand at each retail outlet averages 4,043 units per week. Each unit costs $200 and CC has a holding cost of 20%. The fixed cost of each order (administrative + transportation) is $902. Assume 50 weeks in a year. a) Given that each outlet orders independently and gets its own delivery, what the optimal order size at each...
Home Builder​ Supply, a retailer in the home improvement​ industry, currently operates seven retail outlets in...
Home Builder​ Supply, a retailer in the home improvement​ industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this​ store, which currently has an abandoned warehouse located on it. Last​ month, the marketing department spent $ 15,000 on market research to determine the extent of customer demand for the new store. Now Home Builder Supply...
Beltway Shoe Company sells luxury leather shoes in the United States. The company monitors its shoe...
Beltway Shoe Company sells luxury leather shoes in the United States. The company monitors its shoe sales by collecting randomly chosen data from store locations throughout the country. They record original price, sale price, and number of days it takes to sell each unit. Each pair of shoes is classified as “Eastern Region" if it is sold in the Eastern part of the United States, or as “Western Region" if it is sold in the Western part of the country....
1.Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in...
1.Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent $10,000 on market research to determine whether to build and open the new store. Which of the following should be...
New York City is the most expensive city in the United States for lodging.
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55.what is the probability that a hotel room costs $225 or more per night?what is the probability that a hotel room costs less than $140 per night?What is the probability that a hotel room costs between $200 and $300 per...
New York City is the most expensive city in the United States for lodging.
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. Use Table 1 in Appendix B. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $143 per night...
Suppose it is 2030 and two large food processing firms have established facilities in United States....
Suppose it is 2030 and two large food processing firms have established facilities in United States. These companies have invested in state-of-the-art processing facilities for a range of new vegetable and greenhouse fruit crops and are targeting high value markets with an emphasis on freshness and quality. Farmers have been encouraged to diversify into these horticultural crops, making long-term commitments through the construction of greenhouses, produce washing stations, etc. The food processing firms will only source product from ‘preferred suppliers’...
New York City is the most expensive city in the United States for lodging. The mean...
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. a. What is the probability that a hotel room costs $225 or more per night (to 4 decimals)? b. What is the probability that a hotel room costs less than $140 per night (to 4 decimals)? c. What is...
New York City is the most expensive city in the United States for lodging. The mean...
New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night. Assume that room rates are normally distributed with a standard deviation of $55. a. What is the probability that a hotel room costs $225 or more per night? b. What is the probability that a hotel room costs less than $140 per night? c. What is the probability that a hotel room costs between $200 and $300...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT