Multiple Choice
Assume a U.S. firm initiates direct foreign investment in Italy. If the euro is expected to depreciate against the dollar, the dollar value of earnings remitted to the parent should ____. The parent may request that the subsidiary ____.
A) increase; postpone remitting earnings until the euro weakens
B) decrease; postpone remitting earnings until the euro weakens
C) decrease; remit earnings immediately before the euro weakens
D) increase; remit earnings immediately before the euro weakens
Correct Answer:
Verified
Correct Answer:
Verified
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