If French-based Affiliate A owes U.S.-based affiliate B $1,000 and Affiliate B owes Affiliate A €2,000 when the exchange rate is $1.50 = €1.00. The net payment between A and B should be closest to
A) $2,000 from B to A.
B) €2,000 from A to B.
C) $1,000 from B to A.
D) none of the above
Correct Answer:
Verified
Q10: Multinational cash management
A)is really no different for
Q52: Why can blocked funds can be detrimental
Q53: Which will reduce the number of foreign
Q54: One benefit of a centralized cash depository
Q55: For the U.S. affiliate shown below, net
Q56: Assume that Y pays a tax deductible
Q58: Calculate the increase in annual after-tax profits
Q60: "Unbundling fund transfers" from an MNC and
Q61: Not all countries allow MNCs the freedom
Q62: Bilateral netting can reduce the number of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents