A US company has a manufacturing subsidiary in Mexico and it categorizes Peso as the functional...

 

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A US company has a manufacturing subsidiary in Mexico and it categorizes Peso as the functional currency. a) Explains the concept of functional currency: b) Under US accounting, what currency translation method it will use for this subsidiary? c) Explain the benefit of using this translation method. 3) A) Explain the international trade dilemma; b) List three major international trade documents. c) List three alternatives for international trade financing. A US company has a manufacturing subsidiary in Mexico and it categorizes Peso as the functional currency. a) Explains the concept of functional currency: b) Under US accounting, what currency translation method it will use for this subsidiary? c) Explain the benefit of using this translation method. 3) A) Explain the international trade dilemma; b) List three major international trade documents. c) List three alternatives for international trade financing.

Answer rating: 100% (QA)

a The concept of functional currency refers to the primary currency in which a company operates and generates cash flows It is the currency of the economic environment in which the company primarily o... View the full answer