If a U.S. parent is setting up a French subsidiary, and funds from the subsidiary will be periodically sent to the parent, the ideal situation from the parent's perspective is a ____ aFter the subsidiary is established.
A)strengthening euro
B)stable euro
C)weak euro
D)B and C are both ideal.

Question

Quizplus · Accepted Answer

A strengthening euro is ideal for the U.S. parent company because as the euro strengthens against the dollar, the funds sent from the French subsidiary will convert into more dollars, increasing the value of the remittances.

If a US Parent Is Setting Up a French Subsidiary, and Funds