Understand product liability issues and recotnize contractual and non-contractual liability in business transactions. 4. Locate government resources, programs and legislation that impact international trade and investment. 5. Recognize situations in which legal advice should be obtained.
1. Explain the importance of international business activity to large corporations. What are the types of opportunities sought by aspiring multinational companies? What are the risks faced by these companies, which are specific to the international nature of their business activities? a.
Loan Application for the Tootsie Roll Industries Gina Brazelton Accounting 561 November 5, 2012 Loan Application for the Tootsie Roll Industries Tootsie Roll Industries (TR) is one of the world’s foremost confection manufacturers. Known more for the chewy, individually wrapped chocolates and the lollipops with the chocolate filling, the company also produces a variety of nonchocolate candies. For more than 100 years, these confectionary products have favorites for young and old. Currently TR is facing decreased revenue because of increased costs of supply, dated technology, and possible diminished popularity. It is researching ways to increase revenue; to do this the organization is seeking financing to revamp its manufacturing process.
By 2008, European SSP sales were expected to exceed $150 million, and by 2010, they would draw for 10% of European home coffee maker market. Now, Kraft is ready to introduce the pod to North America, a debut that is expected to bring in BILLIONS. Kraft Foods controlled 15% of the global coffee market in 2004. Kraft’s own coffee brands, Maxwell House and Nabob, owned a combined 32% share of the Canadian market. Their main competitor in Europe was Senseo, who introduced their pods in 2001, selling five million coffee makers and three billion pods by 2004.
Generally Accepted Accounting Principles or (GAAP) is a set of rules and practices. Having GAAP is a substantial authoritative support that the accounting profession recognizes as a general guide for financial reporting purposes (Kimmel, Weygandt, and Kieso). The purpose of GAAP is to measure assets, liabilities, revenues, and expenses. Securities and Exchange Commission or SEC is the agency of the U.S. government that overseas U.S. financial markets and accounting standard –setting bodies. International accounting standards board or (IASB) issues standards (IFRS) that have been adopted by many countries outside the U.S. Companies are required to follow these principles as long as those company’s reports conform to international accounting standards.
In the simulation for International Trade of Rodamia, I am the Trade Representative of the government of Rodamia. As chief advisor, negotiator and spokesperson on international trade and investment issues my job is to advise the President with recommendations for trade. The simulation provides some of the reasons that international trade may be necessary, the opportunity to explore which products to import and export as well as when to impose restrictions such as tariffs or quotas, or negotiate trade agreements. International trade has its advantages as well as limitations. Absolute advantage and comparative advantage plays a role in international trade.
The remaining sales derive from consumers visiting Frog’s Leap’s winery (Gilinsky, 150). During the 2009 to 2010 recession, Frog’s Leap faired out well in accordance to historical financial ratios (See Exhibit 3) and similar sized wineries during the FY 2009 to 2010 as illustrated in Exhibit 6 (Gilinsky, 163). Since 1999, premium wineries in the North Coast have increased from 329 to 1250 (Gilinsky 145 – 146). In the past decade, 25 to 44 year olds have emerged as the largest segment of wine consumers, replacing Baby-Boomers who led most of the industry’s growth in the past 30 years (Gilinsky 147). The industry is in a stage of market saturation, causing financial difficulties as wineries are facing downward pressure on prices and margins.
Cash flow Growth: 8%. Dividend Yield: 2.90%. Dividend Growth: 9% (Alden, 2011). Coca-Cola has additionally grown offering 14 brands to the company making a profit of $1 billion or more in annual sales, the company sold $25.5 billion unit case and had revenue of $35.119 billion in 2010 (Alden, 2011). Coca-Cola has grown its’ revenue rapidly over 5 years, this brought about an important highlight for the company in between 5 years, so the company earned about 8.5% in annual revenue growth.
Ford Motor Company The total amount of cash available for Ford to pay their current debts is 26.75 billion dollars in favor of assets. I derived this from Ford’s Assets $202.03 billion and subtracted their liabilities, which was $175.28 billion. I believe that Ford is in good shape due to the total assets the company has received. 202.03B – 175.28B - $26.75B Ford is increasing its investment in operations every year. In 2011 the cash flow from investing activities was 3.04B in 2011, 14.29B 2012, and in 2013 19.73B.
Nike Inc. is a major publicly traded sportswear and equipment supplier based in the United States. Nike is the world’s leading supplier of athletic shoes and apparel. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike Inc. in 1978.On the other side of the coin, Adidas is the largest sportswear manufacturer in Europe and second in the world. Adidas group which consists of Reebok sportswear, Taylor- Made and Rockport. The company is based out of Germany and was founded in 1924 after WW1 by Adolf Dassler and his brother Rudolf Dassler.