The assets of a foreign subsidiary of a U.S.multinational corporation will experience a _____________________ if the foreign currency depreciates relative to the U.S.dollar,assuming that the dollar is the currency in which the parent company's assets are denominated.

Question

Quizplus · Accepted Answer

When the foreign currency depreciates relative to the U.S. dollar, the value of the foreign subsidiary's assets, when translated into U.S. dollars, decreases, resulting in a translation loss.

The Assets of a Foreign Subsidiary of a U