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

When a U.S.-based MNC considers establishing a subsidiary in a foreign country, there are many factors to consider, including political and economic stability, market demand, labor costs, tax laws, and currency exchange rates. While a foreign currency's appreciation may make the establishment of a subsidiary more attractive, it is not the only consideration. The company would need to evaluate various factors and conduct a thorough analysis to determine the potential success of a new foreign subsidiary.

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