Describe Alternative Forms of Capital Inflow to Finance External Deficits

question 49

Essay

Describe alternative forms of capital inflow to finance external deficits and explain why these methods were used in different times?

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Definitions:

Target Cost

is the estimated price at which a product needs to be sold in the market, guiding the design and manufacturing process to ensure profitability.

Fixed Costs

Costs that do not change with the level of output or activity, such as rent or salaries.

Units Produced

The number of complete items manufactured or produced within a given timeframe.

Cash Discount

A reduction in the invoice price offered by sellers to buyers as an incentive for early payment before the established due date.