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
Effects of inflation: On Income Earners:Those on fixed incomes or assets (fixed in nominal terms) lose. However, those on incomes, which are directly related to the price leve

Ask qIf the supply and demand curves for labor are represented by the following equations: Wd= -- (1/100)Ld + 30 Ws= (1/200)Ls Ws=Wd Ld=Ld a. Graph the results and show the equili

if you were making the pricing decision for the gasoline company, would you cut, raise or leae the price unchanged

What is the explanation for SAC to be tangent to LAC?(In other words, why must both be tangent to each other)?

Economies of Scale The reduction in the cost of each additional unit produced as all factors of production increase. Factors contributing to economies of scale include discoun

Within analysis of perfect competition, we distinguish between the short run and the long run on the basis that use of some input factors is fixed in the short run, but variable in

In a perfectly competitive market the price of the product is?

The Money Creation Process is explained below: We can now study the money supply or the creation process. Suppose the government wishes to buy pencils worth Rs. 10 for the offi

Expected Utility: Theory Assume that a utility index exists which conforms to the five axioms. The expected utility for the two-outcome lottery L = (P, A, B) is given by,