Despite most currencies being convertible why does countertrade Essay

Despite most currencies being convertible why does countertrade persist, illustrate your answer with examples of different types of countertrade - Essay Example Since its manifestation in East-West trade in the midst of 1970, countertrade has increased and widened geographically to the entire world – the number of dealings actually increasing year-by-year. As well as the worldwide development, the formats of countertrade have also stepped forward to have room for the incompatible financial – despite considering this in mind that all currencies is now being convertible – needs and repayment capabilities of selling groups (Francis, Dick, 1987). Therefore, means of payment have incorporated relocations of varied assets with monetary worth for example the deliverances of substantial products (e.g., utensils, goods); services (transport, building); insolvency of lien equipment (debt paper); and equity contributions (Francis, Dick, 1987). The arrangements of countertrade may serve up periodically; readily available currencies, advertising, or public policy are the major objectives of trading parties and their governments. The custom is virtually always influenced by some form of government study or interference, and is ever more a reality of doing business with agencies that are buying when the noteworthy dollar value national procurements are involved (Francis, Dick, 1987). Countertrading is also eminent as a means of financing in global trade. For those underdeveloped or developing nations that have deficiencies of hard currencies or whose national currencies are not exchangeable to other sorts of foreign country exchange, countertrading offers a solid way of financing imports (Paun, Dorothy A, January 1997, 41 50). By selling their import goods to various corporations in developed nations, developing nations also profit by discovering new export marketplaces. Those dealers in developed nations who are ready to countertrade have established that it heighten their businesses. By being flexible in the sort of currency or payment they are going to be given, corporations that

Operations Decision Assignment Example | Topics and Well Written Essays - 1000 words - 1

Operations Decision - Assignment Example le is very common with those people with high incomes; that is, those who can afford to use microwaves as a substitute to the traditional cooking methods. Since the use of microwaves has become so popular, microwavable food products have become popular too. Some of the leading brands in microwavable low calorie foods, which will be analyzed in this paper, include Lean Cuisine and Healthy Choice. Lean Cuisine, which belongs to Nestle,  was formed in 1998, and it is currently being sold in Canada, US, and Australia.   On the other hand, Healthy Choice is a leading low calorie food brand, which gives Lean Cuisine a run for its money. The brand is owned by ConAgra Foods, and its idea was generated in order to offer a line of healthier frozen foods in 1985 (Gregson 25).   Ã‚  Ã‚     There are several factors that determine the effectiveness of low-calorie microwavable food industry’s market structure. The first one is the number of buyers and sellers. If there are few sellers of the commodities in the market, then the firms will have an ability to influence price of the commodities, but if the sellers are many, then they will lose the ability to have a great control over the prices. The second determinant is the nature of the commodity. In this case, if the microwavable food products produced by different suppliers are homogenous, then all the suppliers will be forced to sell it at the same price. However, if the food products are differentiated, then different producers may have different prices. Unfortunately, food products do not lack close substitutes, and hence the producers may not be able to charge higher prices on such a basis. Third, if there would be no restriction of entry and exit of firms, then it would be most suitable if prices are stabilized. On the other hand, if there is no freedom of entry and exit of firms, then the threat of competition will be minimal, hence the existing firms can practice a control over their prices. Fourth, knowledge of the