...business partner, who may be looking at entering your organizations market, can prove to be beneficial as well. The internet is a great source in which to expand globally. The first important step is to look for your organizations import and export opportunities. Being able to market in countries which have more strength against the American dollar will enable more export chances and the individuals which live in those countries can buy more. In this paper, I will be discussing Mexico as the country in which to expand into. When deciding to expand into any country, it is always a good idea to locate and hire a good well known corporate Business Attorney, CPA, Accountant and a Consultant, within that country to help guide your organization in the right direction with the laws and regulations. It is important to learn and understand fully the commercial laws, civil laws, copyright laws, labor laws, trade dispute laws, union laws, tax laws, contract laws, documentation laws, and import/export laws. In Mexico the language spoken is Spanish, yet many of the educated business men and women do speak and read English. The currency is called the peso....
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...condition. This statement was made by having the cabinet in the house and stating that it always stayed there while indeed it was meant to conceal the damage to the house. Third, this statement was made recklessly or with an intention to mislead the buyer into buying the house. Lastly, the buyer did indeed rely on this information and as a result has suffered a loss (Geiersbach, 2010). 2. The North American Free Trade Agreement The NAFTA agreement between Canada, Mexico and the United States has been in existence for two decades now and has basically removed levies on some products moving between the two countries. While NAFTA was meant to boost trade between the nations, it has received criticisms because the countries are not at par in terms of economic development. Mexico in particular has suffered because agricultural output from the US comes into their local market and this has led to farmers in Mexico losing their jobs or being forced to produce in smaller quantities. NAFTA also led to cheap labor coming from Mexico into the US and many US citizens lost jobs in the manufacturing industries. 3. SEC Insider trading This is an offence committed when a person with access to non-public information uses that information when trading in the shares of the company. For a person within a company to be convicted for insider...
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...Final Exam 1. . How much tariff will you pay when they are imported into the U.S? The amount of tariff that needs to be paid for the import of feathers into the United States is 20 percent; 20percent of the $2 million worth of feather will be 400,000 dollars. 2. a. Any dispute, controversy, or claim, arising out of or relating to this contract, or the breach, termination, or invalidity thereof, shall be finally resolved by arbitration. The reason why we choose arbitration is because it’s private to the public. b. The arbitration shall be in accordance with the rules of the American Arbitration Association, which shall administer the arbitration and act as appointing authority. In the event of any conflict between the rules and this clause, the provisions of this clause shall govern. We choose the American Arbitration because it was the most common institution. c. If the parties have not agreed on the number of arbitrators, one arbitrator shall be appointed unless the administrator determines in its discretion that three arbitrators are appropriate because of the large size, complexity or other circumstances of the case. The number of arbitrators shall be one. The reason why we choose one arbitrator is because it’s least expensive. 1. The parties may mutually agree upon any procedure for appointing arbitrators and shall inform the administrator as to such procedure. 2. The parties may mutually designate arbitrators, with or without the assistance of the administrator...
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...11 INTERNATIONAL BANKING AND MONEY MARKET SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Briefly discuss some of the services that international banks provide their customers and the market place. Answer: International banks can be characterized by the types of services they provide that distinguish them from domestic banks. Foremost, international banks facilitate the imports and exports of their clients by arranging trade financing. Additionally, they serve their clients by arranging for foreign exchange necessary to conduct cross-border transactions and make foreign investments and by assisting in hedging exchange rate risk in foreign currency receivables and payables through forward and options contracts. Since international banks have established trading facilities, they generally trade foreign exchange products for their own account. Two major features that distinguish international banks from domestic banks are the types of deposits they accept and the loans and investments they make. Large international banks both borrow and lend in the Eurocurrency market. Moreover, depending upon the regulations of the country in which it operates and its organizational type, an international bank may participate in the underwriting of Eurobonds and foreign bonds. International banks frequently provide consulting services and advice to their clients in the areas of foreign exchange hedging strategies, interest rate and currency swap financing, and...
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...Rental and Walmart, the company doing great as it is differ from them. Unlike its competitors, Coe’s is accented on ownership offering a monthly payment schedule and a shorter contract period, as well as free delivery of items and free repairs. The policy of a chain is to train Coe’s managers in way that they only approve lease agreements only for people who could afford the payments. The policy of a company to identify customers who were not aware about renting-to-own before, but though he economy has a recession, were afraid about committing a big-ticket items at once. Another things, which make Coe’s chain more attractive to customers is that, in case they couldn’t afford to make payments, it is possible to resume the contract with no penalties whenever the financial situation improved. The situation is that investors want the Coe’s chain to grow. One expansion which was rather successfully done in the 1990’s into Canada and there are over 100 stores now. But they have one failed expansion into Puerto Rico a several years ago. It was a bad experience as many customers took products and did not make their payment so that managers can’t find them. After that a Coe’s share price had plunged so that time before to take any decision it is necessary to think twice. Stan is thinking about such a market as Mexico. And there are some evident pros....
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...operates through two segments: passenger and in-flight entertainment. (JetBlue Airways is a passenger airline. Co. operates primarily on point-to-point routes with its fleet of 120 Airbus A320 aircraft and 49 EMBRAER 190 aircraft. As of Dec 31 2011, Co. served 70 destinations in 22 states, Puerto Rico, Mexico and 12 countries in the Caribbean and Latin America. Co.'s onboard offerings include inflight entertainment systems which consist of 36 channels of DirecTV®, 100 channels of XM satellite radio and movie channel offerings; and a range of snacks and beverages. Co.'s subsidiary, LiveTV, LLC, provides in-flight entertainment, voice communication and data connectivity services for commercial and general aviation aircraft) (Business Summary, 2012). The company's other businesses include LiveTV, a wholly owned subsidiary which provides in-flight entertainment, voice communication and data connectivity services for commercial and general aviation aircraft. LiveTV has contracts with seven other domestic and international commercial airlines for the sale of certain hardware and installation, programming and maintenance of its live in-seat satellite television. It also has contracts for its XM Satellite Radio Service and for certain other products and services...
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...risks associated with insufficient traffic levels and toll rates too low to generate expected revenues. Toll road are not exclusive routes. There are mainly used by commercial entities and tourists (sensitive to economic factors) Mitigation: Risk must be shared between private and public sector. A quality traffic forecast must be done by an expert hired by financiers (sponsor’s forecast could be biased to get the deal done). Relying on well documented operation history if roads already exist Currency Currency risk is a major issue for toll roads financed with foreign capital because a project may be unable to pay a return on foreign currency-denominated capital if local earnings are not convertible at the expected exchange rate. At the time of the negotiations Mexico country risk score was 36 with an S&P rating of BBB-. Its annual inflation rate was 9.7% (Much greater than the US and dollar) and 2.8% Annual GDP growth. The revenues were in Pesos and the debt was to be repaid in $US. The Mexican peso was devaluated two years after the international bond was issued. Mitigation: The exchange rate risk is often mitigated by indexing the toll rates to local inflation or the exchange rate of the foreign currency-denominated capital. Large foreign currency debt service reserves can also be used (as in Mexico) to protect against the risk of exchange rate fluctuations and inconvertibility although tying up capital in reserve funds is expensive. Projects can avoid this...
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...UNDERSTANDING NATURAL GAS MARKETS Table of Contents PREVIEW Overview ...................................................................... 2 The North American Natural Gas Marketplace ............... 4 Natural Gas Supply ....................................................... 8 Natural Gas Demand ................................................... 12 Natural Gas Exports .................................................... 15 How Natural Gas is Traded .......................................... 16 Conclusion: A New Era For U.S. Natural Gas Markets ... 20 Glossary ..................................................................... 20 References ................................................................. 23 Understanding Natural Gas Markets Overview Natural Gas is an Important Source of Energy for the United States. Natural gas is an attractive fuel because it is clean burning and efficient, and ample supplies of natural gas are available from domestic resources. Recently, natural gas production in the U.S. has increased substantially due to technological advancements in natural gas extraction methods. This increased production has displaced traditional supply sources and resulted in reduced prices for natural gas consumers. The prospect of ample natural gas supplies, continued low prices, and the favorable environmental and economic position of natural gas-fired electric generation plants are leading to expectations of growing U.S. demand for natural gas,...
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...and less expensive to both parties and in the event of continued disagreement the parties would have recourse in international law. The alliance between CadMex Pharma and Gentura has been a successful one and both companies have cross-licensing agreements for several other drugs and techniques. CadMex and after 5 years of doing business with Gentura is now facing a dilemma due to the change in political system in Candore a new government is now in place also the country is in the midst of an viral epidemic affecting more than 1% of the population, ViroBlax is a drug CadMex licensed Gentura to market is one of the drugs used in the treatment should CadMex allow Gentura to subsidize ViroBlax although that violate the payment terms of the contract between Gentura and CadMex? Although CadMex has the right to take legal action against Gentura doing so is not in the best interest of CadMex because the legal action will take years to settle in international court and will simply affect CadMex business in Candore, reaching an agreement is a better way to settle...
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...created (Jennings, 2012). At a time after the merger, Mr. Riedel’s CD was renewed, and after a short duration the government of Mexico changed its rules regarding accounts from foreigners conducting business in the Mexican banking system (Jennings, 2012). The change in the rule required the Mexican bank to pay the CDs in pesos; pesos are paid at a rate considerably less than the exchange rates (Jennings, 2012). Additionally, one month after the rule was put in place, Bancam became nationalized. The value of Mr. Riedel’s CD on its maturity date was $53,276.23, an amount significantly less than is $100,000 investment (Jennings, 2012). COURT HISTORY: * Mr. Riedel filed suit in a U.S. federal court, claiming that Bancam violated both federal and Ohio securities laws in selling the CDs in the U.S. without registration. * Bancam countered a motion to dismiss the suit on the ground that the Sovereign Immunities Act of 1976 * Bancam also claimed protection under the act of state doctrine * Bancam claimed that the CD was not a security protected under the U.S. securities laws. * The case was dismissed on the following grounds: 1. No jurisdiction 2. Sovereign immunity 3. State doctrine 4. Act of state doctrine * Mr. Riedel appealed this ruling (Jennings, 2012). THE ISSUE(S): * Jurisdiction over Breach of Contract * Act of state doctrine THE HOLDING(S): Does Ohio District...
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...weak judicial enforcement and imperfect records of upholding seniority claims, because receivables are sold, rather than collateralized, and factored receivables are not part of the estate of a bankrupt SME. Empirical tests find that factoring is larger in countries with greater economic development and growth and developed credit information bureaus. In addition, we find that creditor rights are not related to factoring. This paper also discusses “reverse factoring”, which is a technology that can mitigate the problem of borrowers’ informational opacity in business environments with weak information infrastructures if only receivables from high- quality buyers are factored. We illustrate the case of the Nafin reverse factoring program in Mexico and highlight how the use of electronic channels and a supportive legal and regulatory environment can cut costs and provide greater SME services in emerging markets. World Bank Policy Research Working Paper 3593, May 2005 The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out...
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...States, Canada and Mexico. Chou just created Strat an new strategy game. BTT is interested in distributing this game so they entered into a deal where Chou got $25,000 for negotiation rights for ninety days. This agreement specified that all contracts were to be in writing and there would be no verbal contract. Before the time was up BTT, sent Chou an email that detailed the specified the agreements reached upon their meeting, except for the agreement that Chou was to write up the draft, not BTT. Chou never responded and later BTT sent him a fax, asking for the draft, which Chou again never responded to. At what point, if ever, did the parties have a contract? According to the scenario, both Big Time Toymaker and Chou did have a contract, when they meet and agreed on all the terms and conditions of the distribution, that would be a contract, but because they agreed that there would be no contract unless it was in writing then it can be assumed they never were in contract because there was never a document they both acknowledge and accepted as a contract. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The most important fact weigh in against Chou is that he did get a document before the ninety days expire, this document seemed to express everything that they wanted as agreed in their meeting yet he never responded. The reason why he did not respond was trivial, and if he really wanted to enter in contract with BTT, he would...
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...Charles River Laboratories (CRL) CRL was once the global market leader in the commercial production and supply of laboratory animal models for use in discovery and research and the development and testing of new pharmaceuticals. The company’s strategic growth objective was to grow its existing business by between 12% and 15% annually and its entire business by 20%. This plan left a strategic growth gap of 5% to 8% each year, resulting in CRL’s pursuit of growth opportunities in the form of joint ventures, technology licensing and strategic partnerships. Key Issues Primary: Should CRL invest up to $2 million to create a state of the art specific pathogen free (SPF) egg farm? In order for Dennis to win over the Board of Directors, he must convince Jim Foster (CEO) of CRL. Foster views this proposal as a potential distraction for Specific Antigen Free Avian Services (SPAFAS), which continues to grow in the United States. Given the number of companies involved, different geographic locations and capital requirements, CRL must carefully decide whether this investment will fill their strategic gap growth. Secondary: Would IDISA be reliable partners in a joint venture The complex organizational structure of Group IDISA, is made up of five legally independent companies all owned by the same family. When considering a joint venture with ALPES, CRL has concerns regarding the number of transactions between the companies and the overall transparency of the IDISA. This family...
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...September 5, 2015 Introduction In this day, they are conventional in the military export milieu. Foreign government purchasers characteristically anticipate these to be an element of a defense sales contract. They participate in an essential function in swaying the purchaser’s election of a defense system. Foreign government frequently rely on these arrangements and its potential of producing business for domestic industries, to suppress the undesirable political implications that are supplementary with government expenditure abroad. The adversaries of these are characteristically originated in the United States due to the destructive impact on employment, technological attractiveness and the industrial base as crucial motive for eliminating these agreements. This paper opens up the substance of offsets from the viewpoint of international military purchasing and emphases on the rudimentary thoughts of an offset agreement. What Is A Contract Offset? An agreement between a contractor and the government where the contractor agrees to buy products or perform services from the government and their country which will aid in the contractor winning the contract award and offset the government’s outlay. Offsets have become an integral part of international defense contracts and provide countries to even up the balance through trade. The U.S. Defense exports the majority of the world’s weapons; therefore, offsets are crucial. Offsets provide additional advantages for the purchasing...
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...Energy Reform will allow our country to develop in the energy section, without privatizing the enterprises that are in charge of providing electric energy or petroleum. The main objectives of this reform are: • Mexico will remain owner of the petroleum that exists in its underground. • Modernize and strengthen CFE and PEMEX, while remaining public. • Allow the nation have control over its electric system, this in order to reduce electricity cost. • Have plenty stocks of energizers at better prices. • Encourage the development with a social responsibility and taking care of the environment. • Attract investments towards the Mexican energy sector in order to promote the countries development. In comparison to U.S.A, the electricity bills are 73% more expensive here than there. This represents a great obstacle for economic development in our country because electricity is necessary in the industrial, commercial and service areas. One reason for this to happen may be the fact that there is a great lack of investments in this particular service. Regarding the distribution, now a days there are significant inefficiencies. The losses of energy in Mexico are almost twice the average of other OCDE countries. Above 21% of the produce energy by CFE is not paid. New Model Characteristics Constitutional Article 27: It is established that the planning and control of the national electric system, such as the transfer and distribution...
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