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Suppose That Thabo, a Resident of SA, Buys Software from a Company

question 44

Essay

Suppose that Thabo, a resident of SA, buys software from a company in Japan.Explain what this is and in what directions this changes SA net exports and SA net capital outflow.


Definitions:

Floating Interest

An interest rate that changes over the life of a loan or mortgage, based on the current market conditions or an index.

Solvency

The ability of an entity to meet its long-term debts and financial obligations.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Inventory Turnover

A measure of how quickly a company sells its inventory within a given period, indicating the efficiency in managing and selling products.

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