The discrepancy between the feasibility of a project in a host country from the perspective of the U.S. parent versus the subsidiary administering the project is likely to be greater for projects in countries where:

Question

Quizplus · Accepted Answer

If the currency of the host country is expected to depreciate consistently, the subsidiary administering the project will need more money to cover the same costs than the U.S. parent would be expecting. This would create a discrepancy between the feasibility of the project from the two perspectives. Options A and B do not necessarily affect the feasibility of a project differently from the perspective of the U.S. parent versus the subsidiary administering the project, and option D is incorrect because a discrepancy is possible in certain circumstances.

The Discrepancy Between the Feasibility of a Project in a Host