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REY
1 month ago
12

A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why do these investments by governments with

surplus cash flows worry trade experts?
Business
1 answer:
stepan [3.5K]1 month ago
5 0

Solution:

Larger companies can gain control over natural resources.

Justification:

Governments investing with surplus cash flows raise concerns for trade specialists because such investments could enable large corporations to take charge of a nation's natural resources, as well as sensitive technologies and the management controls related to these assets.

In general,

sovereign wealth funds (SWFs) are government-sponsored investments aimed at enhancing the economy and benefitting a nation and its citizens, although a rapid increase in these foreign direct investments from SWFs may negatively impact the country's citizens and the resources available to the nation.

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ABC issued callable bonds on January 1, 2018. ABC's accountant has projected the following amortization schedule from issuance u
arsen [3447]

The gain amounts to $370

Reasoning:

To determine the gain or loss for the date 12/31/2018, according to ABC's amortization schedule

On this date, the carrying value was $196,370 while ABC procured the bonds back for $196,000 on 12/31/2018

Now let’s compute the gain or loss using this formula

Gain/Loss = Carrying value - Bond stock

Substituting into the formula gives us Gain/Loss =$196,370-$196,000

Gain/Loss=$370

Therefore, on the date 12/31/2018, ABC will show a gain of $370

7 0
2 months ago
A construction management company is examining its cash flow requirements for the next 7 years. The company expects to replace s
Nady [3600]

Answer:

Total cost= $104,022.6

Explanation:

Given the following data:

The company anticipates $6000 in expenditure after 1 year, $9000 after 3 years, and $10,000 annually from year 6 through year 10.

The annual interest rate is set at 12%.

We will apply this formula:

FV= PV*(1+i)^n

FV= 6000*(1.12)^9= 16,638.47

FV= 9000*(1.12)^7= 19,896.13

Total= $36,534.6

For the last three amounts, we shall use the formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {10000*[(1.12^3)-1]}/0.12= 67,488

The cumulative cost is 67,488 + 36,534.6= $104,022.6

7 0
3 months ago
Malia is a partner of a small clothing company. This week she has been hosting a group of potential investors. Several of the po
stepan [3596]

Answer:

The answer is Legal.

Explanation:

A legal issue comprises a conflict that needs to be resolved under the existing laws. When such matters are presented to a judge, there is typically a requirement for justification. This necessitates outlining the conflict using the normative and factual arguments presented by the parties involved, along with relevant consensus and/or evidence. Once the judge possesses all necessary normative and factual details, as well as their interpretation and evidentiary foundations, they can articulate the problem. This scenario contains two facets: the normative aspect refers to the overarching theme of the dispute, while the factual aspect details the specific elements of the case that provide a unique interpretative context to the general issue.

8 0
3 months ago
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