Dubas Co. is a UK-based MNC that has a subsidiary in Germany and another subsidiary in Greece. Both subsidiaries frequently remit their earnings back to the parent company. The German subsidiary generated a net outflow of €2,000,000 this year, while the Greek subsidiary generated a net inflow of €1,500,000. What is the net inflow or outflow as measured in pounds this year? The exchange rate for the euro is £0.58.
A) £1,160,000 outflow
B) £290,000 outflow
C) £8,700,000 inflow
D) £210,000 outflow
Correct Answer:
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