Analyze the balance of payments

Assignment Help Financial Management
Reference no: EM131592253

Balance of Payments:

B = m + x + c – (ml + xl + cl)

Point number 1: Prior to opening the Honda plant as a direct investments by Honda Japan in Ohio, Honda Japan used to export 200,000 cars annually at an FOB price of $15,000 per car.

Point number 2: Honda’s Ohio plant currently produces 200,000 cars annually, and out of this total production it exports 100,000 cars at an export price of $15,000.

Point number 3: In order for Honda of Japan to produce cars in Ohio, it brought in $200,000,000.00 in direct investments.

Point number 4: Honda currently imports various components (i.e., engine parts, etc.) estimated $3,000.00 for each car produced in Ohio.

Point number 5: Honda, prior to its investment in Ohio, used to import tires and other components from Ohio, estimated at $1,000.00 per car for 200,000 cars.

Point number 6: Honda sends the equivalent of $2,000.00 dividends/profits for the 200,000 cars produced in the United States back to its parent in Japan.

Please explain and analyze the balance of payments as it relates to Hondas investments in the United States in terms of; export reduction vs. export stimulus, import stimulus vs. import displacement, and capital inflows vs. capital outflows.

Reference no: EM131592253

Questions Cloud

Create a macro to turn on formulas : BSBITU402 - Design procedures that will create a Macro to turn on formulas, print and save a spreadsheet/worksheet document.
Describe the actions of people and organizational leaders : Describe the actions of people and organizational leaders directly and indirectly involved with the tragedy. Specifically address the ethical issues they faced.
Explain how your intended career may lead to engage : describe the court you selected. Explain how your intended career may lead you to engage with this court
Prepare journal entries to record the transactions : A television set costing $540 is sold to Jack Matre on November 1, 2014, for $900. Matre makes a down payment of $300 and agrees to pay $30 on the first.
Analyze the balance of payments : Please explain and analyze the balance of payments as it relates to Hondas investments in the United States in terms of;
What annual inflation rate-compounded annually : A newspaper reports that in the last 5 years, prices have increased a total of 50%. This is equivalent to what annual inflation rate, compounded annually?
Selection of the forecasting approach : 1. Describe a real or hypothetical situation that requires someone to make a policy decision.
Give an example of an application of anova in an industrial : Give an example of an application of ANOVA in an industrial, operations, or manufacturing setting that is different from the examples provided in the overview.
Prepare schedule for the cost of goods sold on installments : (Installment-Sales Computations and Schedules) Saprano Company, on January 2, 2014, entered into a contract with a manufacturing company to purchase room-size.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd