What are the five tasks involved in issuing trade credit

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1. How can transfer pricing be used to avoid tariffs?

2. What are blocked funds? How can a corporation structure its foreign affiliates to mitigate problems with blocked funds?

3. What is a fronting loan? How does its structure potentially create value for a multinational corporation?

4. Why is the threat of devaluation an insufficient reason for a firm to build up its stocks of inventories?

5. What are the five tasks involved in issuing trade credit?

6. What is wrong with the rule that firms should invoice their customers in hard currencies?

7. Why does it make sense for a multinational corporation to allow its foreign customers to pay on credit if there is rationing in the foreign credit market?

Reference no: EM13897541

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