Question: Consider a U . S . - based MNC parent owns subsidiaries in the France, Mexico, and Australia. Suppose the MNC parent expects an decrease
Consider a USbased MNC parent owns subsidiaries in the France, Mexico, and Australia. Suppose the MNC parent expects an decrease in the exchange rate, measured in US dollars per australian dollar.
This decrease in the forecasted exchange rate will decrease the value of the MNC all else equal.
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