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Finance of International Trade I need the expert to take a look my answer and give me feedback or suggestion to change if wrong CASE
Finance of International Trade
I need the expert to take a look my answer and give me feedback or suggestion to change if wrong
CASE STUDY U-Wise Manufacturing Berhad, a manufacturer of components, has signed a contract to purchase electronic components for its production line. The company opts to purchase the equipment either from the United States or Japan. Both the United States and Japan suppliers have agreed with the following terms: The quoted price Payment terms The United States supplier term US$280,000 i. Seventy-five per cent of the contract price must be made immediately once the contract is signed with a 15 per cent sales discount. To meet this prompt payment, the importer would have to use its clean overdraft facility for one month, which charges 12 per cent per annum. The remaining balance is to be settled one month later. i. Japan supplier term 29,120,000 Half of the contract price is paid immediately upon signing the contract with a9 per cent sales discount. Seventy per cent of the balance is to be settled one month later. The remaining balance is to be settled two months later.
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