When a U.S.-based MNC wants to determine whether to establish a subsidiary in a foreign country, it will always accept that project if the foreign currency is expected to appreciate.

Question

Quizplus · Accepted Answer

There are a variety of factors that a U.S.-based MNC will consider when deciding whether or not to establish a subsidiary in a foreign country. While a potential appreciation in the foreign currency may be one factor, it is not the only or even the most important factor to consider. Other factors such as the stability of the local economy, government regulations, cultural differences, and the availability of local talent and resources will also be considered before a decision is made.

When a US-Based MNC Wants to Determine Whether to Establish a Subsidiary