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Hello dear tutor
I hope that you are wellassume that there are 2 companies(A & B) which want to sell the same asset.
the following markets with the stated volume of activities are available:
1-USA(market:8000 units/A;0(Because of US unfair political sanctions A doesnt have access to this market)/B;0(B has access to this market but for any reason(eg:high transportation costs) do not enter to this market-but it can do this whenever it wants)2-Asia(market:5000 units/A;100/B;600)
3-Africa(market:3000 units/A;500/B;300)
would you please determine the principal market for these 2 companies?
in my opinion for A , Asia is the principal market(because The principal market is the one with the greatest volume and level of activity for the asset or liability(and not the greatest volume of activity for that entity) that can be “accessed” by the entity.) and for B, USA is the principal market because it has access to it.-in order to determine the Principal market we should ignore the volume of activity of A and B(entities) and we should pay attention to the volume of activity of that MARKET and ACCESSABILITY of that entities).
is it correct?
Thank you in advance
That seems to be a reasonable argument and conclusion to me
Is this a made-up example of your own or is it some part of your homework?
Hello again
Thank you for your reply
Fortunately I am an ACCA affiliate and I donot have homework for nights or even stress for exam.
I made it as we may have this case in my country.Thank you very much.
Then that’s very unprofessional of you!
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