Bilateral and Multilateral Contracts, Economics, Microeconomics

Assignment Help:
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.

Related Discussions:- Bilateral and Multilateral Contracts, Economics

Impact of government legislations on business, Impact of government legisla...

Impact of government legislations on business in india Government in India plays a dominant role in the Indian business activity. It directs and regulates the private business and

Difference between accounting profit and economic profit, Difference betwee...

Difference between accounting profit and economic profit: The difference between accounting profit and economic profit is that economists include in total cost of production b

Market supply labour, use a graphical illustration to describe briefly what...

use a graphical illustration to describe briefly what the influence of each of the following be on the market supply of labour,(a) an increase in immigrants, (b) a reduction in wag

Consumer''s chiose involving risk, risk describe,prefrence towards risk,the...

risk describe,prefrence towards risk,the demand for risky assets.consumer behaviour under asymmetricinformation

Perform a one way anova, The Tastee Bakery Company supplies a bakery produc...

The Tastee Bakery Company supplies a bakery product to many supermarkets in a metropolitan area. The company wishes to study the effect of shelf display height employed by the supe

Consumer and producer surplus, analyse the rise and fall in the price under...

analyse the rise and fall in the price under market equillibrium situation?

Uses of balance of payments account, Uses of Balance of payments account: ...

Uses of Balance of payments account: It removes the uncertainty associated with the flexible exchange rate regime and brings stability. It also indirectly imposes some anti inf

Demand theory, Ask question #Minintroduction to recent development in deman...

Ask question #Minintroduction to recent development in demand theory

What caused the productivity slowdown, What caused the productivity slowdow...

What caused the productivity slowdown?  Observers have pointed to 4 factors--Oil prices, baby boom, increased problems of economic measurement and environmental protection expe

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd