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A Japanese manufacturer (the seller) of optical zoom attachments has signed a contract with a Mexican company (the importer) to supply 10,000 attachments for a contract price of USD 1.2 million, Following multiple discussions, the Japanese company has sought a 10 percent advance payment to help the company secure funds for purchasing raw materials and to ensure the commitment of the buyer. Given this is the first contract between these two companies, the Mexican company has asked for a 5 percent performance guarantee to ensure appropriate delivery on their agreement. Explain how a buyer can use the advance payment and performance guarantee to their benefit. ( Need an elaborated and explained answer)
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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