A U.S.-based MNC has many foreign subsidiaries in Europe and does not expect to increase its investment there. Its value should increase if the value of the euro weakens over time.

Question

Quizplus · Accepted Answer

A weakening euro means that when the earnings from the European subsidiaries are converted back to dollars, they will be worth less, potentially decreasing the overall value of the MNC.

A US-Based MNC Has Many Foreign Subsidiaries in Europe and Does