Dubas Co. is a U.S.-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 U.S. dollars this year? The exchange rate for the euro is $1.05.
A)$3,675,000 outflow
B)$525,000 outflow
C)$525,000 inflow
D)$210,000 outflow

Question

Quizplus · Accepted Answer

SOLUTION:- €2,000,000 + €1,500,000 = - €500,000 - $1.05 = - $525,000

Dubas Co Is a U