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Chapter 6.3, BEC610921, BEC610922, BEC614043, BEC614040, BEC613258,…
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BEC610922
Global companies that deal with the political and financial risks of conducting business in a particular foreign location face which of the following types of risk?
The political and financial risk that a company faces by conducting business in a foreign location is a type of country risk. These are types of risk that are related to the particular country where the business is being carried out.
Option (b) is incorrect because principal risk is the risk of losing the principal amount due to non-payment by the borrower.
Option (c) is incorrect because interest rate risk is the risk assigned to the changes in interest rates.
Option (d) is incorrect because commodity price risk arises from the fluctuations in the prices of commodity.
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BEC613258
In a perfect competition, at all production levels:
In a perfect competition, at all production levels marginal revenue (MR) equals price. This is because the demand curve is horizontal.The firm supplies as long as MR exceeds MC (marginal cost) until the point where MR = MC
BEC613260
In a perfect competition, if suppliers earn economic profits:
The market demand curve is downwards sloping. The demand will increase at reduced prices (and vice-versa). If suppliers earn economic profits, in the long run, new suppliers enter the market (given no barriers to entry) until prices fall and it is possible to only earn a normal profit. Also if suppliers earn economic losses, in the long run, suppliers will exit the market until prices rise and a normal profit is earned by the most efficient suppliers.
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BEC613239
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I) The analysis can be carried out for a product, place, company, industry or a person.
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III) Opportunities and threats are viewed as unfavorable external factors that might affect an organization.
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