If a U.S. parent is setting up a French subsidiary, and funds from the subsidiary will be periodically sent to the parent, the ideal situation from the parent's perspective is a ____ after the subsidiary is established.
A) strengthening euro
B) stable euro
C) weak euro
D) B and C are both ideal.

Question

Quizplus · Accepted Answer

A strengthening euro is ideal because it means that when the subsidiary sends funds back to the U.S. parent, the value of those funds will be higher when converted to U.S. dollars, increasing the parent's returns.

If a US Parent Is Setting Up a French Subsidiary, and Funds