Other things being equal, a foreign subsidiary in China would more likely be divested by the U.S. parent if new information caused the parent to suddenly anticipate that:

Question

Quizplus · Accepted Answer

If the Chinese yuan is expected to depreciate, the value of the subsidiary's earnings when converted to U.S. dollars would decrease, making the subsidiary less profitable and more likely to be divested.

Other Things Being Equal, a Foreign Subsidiary in China Would