myz-vgb.ru A Business Encyclopedia

Domestic Lease and International Lease

Definition: The Domestic Lease and International Lease are the types of leases classified on the basis of the places where the parties to the lease agreement reside. The lease is the agreement between the lessor and the lessee; wherein the lessor grants permission to the lessee to use his property in return for periodical rental payments.

Domestic Lease: When all the parties to the lease agreement Viz. Lessor, lessee and the equipment supplier are domiciled or belongs to the same country, is called as a domestic lease.

International Lease: The international lease refers to the type of lease agreement where one or more parties to the lease agreement reside or are domiciled in different countries.

There are two types of international lease: the Import Lease and the Cross Border Lease. In the former type of lease, both the lessor and the lessee belong to the same country, but the equipment supplier stays in some other country. In the case of a cross-border lease, both the lessor and the lessee stay in different countries, irrespective of where the equipment supplier stays.

The major difference between the domestic lease and international lease is that the latter is exposed to two types of risks: country risk and the currency risk. Country risk refers to the tax and the regulatory framework prevalent in the country concerned, and the currency risk means the risk involved in the fluctuations in the exchange rate as the payments tend to be denominated in different currencies.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


what is herzberg's theory of motivationdefinition for oligopolynps pensionexample of seasonal unemploymentwhat is an autocratic leadership stylewhat is dialectical methodcommercial paper secondary marketwhat affects price elasticity of demandattack marketing and promotionsequi marginal utility diagramdefinition of unitary elasticguerrilla war meaningexample of law of diminishing marginal utilityscope of collective bargaining pptjudgement sampling examplebalanced mutual funds definitioninduct meaningalderfer's erg theorywhat is the equity theoryexample of semantic barriertraveling chequeerp features and functionsfactoring meaning in financemeaning of staffing in hindimcgregors theory x and theory ylaw of diminishing marginal utility definitionmacromarketing definitionoligopoly market structure diagramasset turnover ratio formula exampledefine apprenticeshipsquota sampling meaningbudget deficit definedefine operantlikert scales definitionhenri fayol scientific managementlinear programing examplesdelphi forecastingexample of total utility and marginal utilitymsf rbidefinition of teleological ethicsdefinition of apprenticesmeaning of abc analysisintroduction of law of equi marginal utilityreward power and coercive powereconomic meaning in teluguone characteristic of an oligopoly market structure iswhat is the expectancy theory of motivationdemand pull inflation is caused bymeaning of hedging in forexgnp measuresexample of ethnocentricitystructural unemployment meaningexpansionary phase of the business cyclefactors influencing purchase decisiondonkey carrot stickmeaning of training and development in hrmfactors influencing buying behaviourconsistent meaning in tamilindefference curvescash reserve ratio rateafc meaninggdp gnp national incomemeaning of queuingadvantages and disadvantages of human resourcesmeaning of rural marketingteleology examplesdefinition of retailing in marketingadjourning meaninghierarchical meaning in urduadvantages and disadvantages of equityshare capital advantages and disadvantageswhat is monopolistic competitionoral communication wikipediameasurement of elasticity of demand economicsequity theory relationshipsscorecard meaningoperant condition theorydefine maulingadvantages and disadvantages of job evaluation