User Account

All Pages

Discuss how the L-C facilitates international trade

Assignment Help Financial Accounting
Reference no: EM132977599

Problem - Penang Motors is a newly incorporated company in Malaysian. They are about to purchase 10 tonnes of copper at $9000/tonne from a Turkish exporter. The CEO of Penang Motors, Tim Lee, does not have any experience in international trade. Therefore, Tim was shocked when he received a request for a payment of $90,000 for 10 tonnes of copper from the exporter. Tim is furious and does not want to pay before receiving the payment. You are the external advisor to Penang Motors. You have suggested Tim to use letter of credit (L/C) to purchase from any unknown seller.

A. Explain what is letter of credit (L/C), its principle parties and principle advantages to Tim Lee.

B. Discuss how the L/C facilitates international trade.

Reference no: EM132977599

Questions Cloud

What is the classification of the gain on the sale : Ms. Cool purchased a new freezer for her grocery store at a cost of $80,000 on July 1 of last year. What is the classification of the gain on the sale
Calculate the marginal product of labor : Suppose this bakery decides to add another unit of capital in the long-run. Find the marginal product of the 4th unit of capital and the marginal product
Calculate the average equivalent units of production : At the end of the period, the mixing department had 5,000 units remaining in the department 40% complete. Calculate the average equivalent units of production
When should the architect begin the analysis : When should the architect begin the analysis? What are the activities the architect must execute? What is the set of knowledge domains applied to the analysis?
Discuss how the L-C facilitates international trade : They are about to purchase 10 tonnes of copper at $9000/tonne from a Turkish exporter. Discuss how the L-C facilitates international trade
Discuss web site backup options : Discuss Web site backup options, with attention to whether a backup is performed by the hosting provider or by a customer using a file transfer tool.
Why do so many projects end up terminated : Why do so many projects end up terminated as a result of termination through starvation? Discuss the role that ego, power, and politics in this form of terminat
What memory management considerations a mobile application : What memory management considerations a mobile application programmer needs to be aware of. What are the implications of not managing memory effectively?
Calculate the total value of Smart Company today : Cash flows are expected to be 20 million dollars in years six then expected to grow at 6% annual rate thereafter. Calculate the total value of Smart Company

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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