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Cieplak, Inc., is a U$.$S$.-$based MNC that has expanded into Asia. Its U$.$S$.$ parent exports to some Asian countries, with its exports denominated in the Asian currencies. It also has a large subsidiary in Malaysia that serves that market. Offer a reason related to exposure to exchange rates that explain why Cieplak's earnings were reduced during the Asian crisis in $1997.$

The earnings generated by the Malaysian subsidiary were translated to fewer dollars on the consolidated income statement due to the appreciation of the Asian currencies even if it did not remit any earnings to the parent.

Any funds remitted by the Malaysian subsidiary converted to fewer dollars for the parent due to the depreciation of the Asian currencies.

Cieplak's receivables from its exports were converted to fewer dollars due to the appreciation of the Asian currencies.

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