Differentiate Between Internal Services and External Services and Explain the Role

question 90

Essay

Differentiate between internal services and external services and explain the role of outsourcing in the provision of internal services.

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Definitions:

Forward Market

A marketplace for financial contracts that are agreed upon now but settled at a future date.

Premium

An amount paid in addition to a standard price, or the amount above the nominal or face value of a financial instrument.

Discount

A reduction in the price of goods, services, or financial instruments, often used as a marketing strategy or to encourage early payment.

International Fisher Effect

A theory stating that differences in nominal interest rates between two countries are directly proportional to changes in the exchange rate over the same period.