--%>
Assignment Help - homework help

Direct loans-loan guarantees and credit insurance

Do you think that government of the country must assist the private business in conduction of the international trade through the direct loans, loan guarantees, and/or credit insurance?

E

Expert

Verified

Whenever the government of country provides below-market financing directly to the foreign importers, or provides loan guarantees to the domestic banks financing foreign import, or offers low cost credit insurance to the U.S. exporters in order to mitigate the political and commercial risk in sale, this is using taxpayers’ money in order to subsidize foreign trade.  As a result, foreign trade is not paying for itself.  However, if governments of developed countries provide such assistance to their domestic exporters, it becomes really difficult for one in order to refuse in case country desires to have its export-oriented industries to remain competitive.

   Related Questions in Financial Accounting

  • Q : Financial report Details of Assignment

    Details of Assignment : You are required to form a team (group) of 3 to 4 m embers. Let your lecturer know the names of your team members. Select a set o f financial statements for a group of companies and obtain approval from your le cturer for the group of companies that you have selected.

    		•
  • Q : Define Liabilities Liabilities mean the

    Liabilities mean the amount which the firm owes to the outsiders. Liabilities are of two types: -Long term liabilities & Short term liabilities. Examples of long term liabilities are long terms loans, bonds etc. & examples of short term liabil

    		•
  • Q : Finalization of Accounts What does the

    What does the term Finalization of Accounts mean?

    		•
  • Q : What is correspondent bank relationship

    Explain what you mean by Correspondent bank relationship.

    		•
  • Q : Brokering Creativity Explain the term

    Explain the term Brokering Creativity in Creative industry ?  

    		•
  • Q : International diversification Evaluate

    Evaluate the home country’s multinational corporations as a tool for the international diversification.

    		•
  • Q : Foreign bonds and Eurobonds List some

    List some of the differences between the foreign bonds and Eurobonds and also describe why Eurobonds make up lion’s share of the international bond market.

    		•
  • Q : Super Profit Method in Goodwill Super

    Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis

    		•
  • Q : Comprehensive Problem in Accounting

    Accounting Comprehensive Problem The case involves one accounting cycle (regular journal entries, adjusting journal entries, preparing financial statements,

    		•
  • Q : Advanced Accounting-Consolidated

    I have worked the problem. I need to know if it is correct. If not, what I'm missing.

    		•