The purpose of this paper is to examine various methods of payment and foreign-exchange risk management among firms involved in either export or import trade only, or both in Brunei Darussalam. The paper also seeks to delineate the relationship(s) between various characteristics of firms such as number of years in business, size, and frequency of imports, and various methods of payment and fore…
Indonesia recorded a trade surplus of USD4.4bn in H115, following a larger dip in imports relative to exports. The slowdown in import volume growth could be an indicator of sluggish growth in the industrial sector. However, as government-backed infrastructure projects enter the construction phase over the coming quarters, imports should start to pick up, and we expect the trade surplus to narro…
Indonesia's current account balance will benefit from its widening trade surplus, which should allow the deficit to narrow to 2.4% and 1.8% of GDP in 2015 and 2016, respectively. However, as the trade surplus has largely been the result of a deeper contraction in imports relative to exports, it reflects poor investor appetite and sluggish industrial activity, which will weigh on economic growth.
In inventory theory the inventory holding cost per unit plays an important part. In most transactions concerning selling and buying a certain postponement of payment is offered or accepted by the seller. This should have some consequences for the order size and can be regarded as a kind of discount. Traditionally, when average costs (AC) are used, these kinds of effects are not explicitly incor…