CRT, a US based multinational has recently established two subsidiaries in Mexico. These subsidiaries are massive and
Fantastic news! We've Found the answer you've been seeking!
Question:
CRT, a US based multinational has recently established two subsidiaries in Mexico. These subsidiaries are massive and do import a significant number of materials. The subsidiaries sell a large portion of their imports locally. CRT’s excess earnings beyond what it needs in Mexico is remitted back to the United States. CRT is planning to invest a large sum of excess earning in financial market in Europe in the future.
- Explain how the CRT subsidiaries in Mexico would use the spot market in the foreign exchange.
- Why might CRT want to invest funds in financial market in Europe.
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date: