Bilateral and Multilateral Contracts, Economics, Microeconomics

Bilateral and Multilateral Contracts
Bilateral contract is defined as to purchase & sell certain quantities of a commodity at the agreed upon prices may be entered into between the major importer & exporter of the commodity. In such an agreement an upper price & a lower price are specified. If the market price throughout the period of the agreement remains within these specified limits then the agreement becomes operative. while, if the market price rises above the upper limit specified then the exporting country is obliged to sell the importing country a certain specified quantity of the commodity at the upper price fixed by the agreement. Other hand, if the market price falls below the lower limit specified and the importer is obliged to purchase the contracted quantity at the specified lower price.

Thus kind of international sale & purchase contracts may also be entered into by two and more exporters and importers. The bilateral and multilateral agreements are usually concluded between the major supplier(a) and the major importer(b) of the commodities.
Posted Date: 1/30/2012 11:53:21 PM | Location : United States







Related Discussions:- Bilateral and Multilateral Contracts, Economics, Assignment Help, Ask Question on Bilateral and Multilateral Contracts, Economics, Get Answer, Expert's Help, Bilateral and Multilateral Contracts, Economics Discussions

Write discussion on Bilateral and Multilateral Contracts, Economics
Your posts are moderated
Related Questions
What are the factors that determine the volume of production?

how to find least cost combination of factor inputs given the production

Explain crowding out and why it may be considered important for policy makers. Crowding out refers to how enhanced government borrowing (real borrowing!) might serve to raise i

The Free Enterprise:  Price System The free market system is where the decision about what is produced is the outcome of millions of separate individual decisions made by cons

What barriers to economic growth can be explained using the Harrod-Domar model? Definition and outline of the Harrod-Domar model; growth in national income = savings ratio over


Discuss about the language and methods of mathematics in modern economics. Language and Methods of Mathematics: This section reviews some fundamental mathematics results

Interest: A lender charges interest as the price of lending money (or some other asset) to a borrower. Interest is mainly charged as a specified percentage of the loan's value, per

Economic Value to Customer Economic Value to Customer = EVC x = [LifeCycle costs of a competitor's product in relation to a home firm] - [Start-up Costs for the home fir

Themes of Microeconomics ?? As per Mick Jagger & the Rolling Stones, “You can’t always get what you want”. Why Not?          ?? Restricted Resources          ?? Infini