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This means that when consumer income rises, the demand for inferior goods declines. A demand curve shows the growth or decline in a product’s demand due to changes in the relative parameters. For example, the inferior goods demand curve reflects the difference in income levels and customer preferences and its impact on the demand. Inferior goods have […]

In addition, some institutions use currency swaps to reduce exposure to anticipated fluctuations in exchange rates. For instance, companies are exposed to exchange rate risks when they conduct business internationally. Also, instead of using currency swaps, companies can use natural hedges to manage currency risk. Finally, companies can choose to remain in their domestic market […]

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The number of authorized shares per company is assessed at the company’s creation and can only be increased or decreased through a vote by the shareholders. Only 100 shares can be issued if documents state at the time of incorporation that 100 shares are authorized. As a potential investor, it is important to understand the […]