​Assume a U

question 10

Multiple Choice

​Assume a U.S. MNC initiates direct foreign investment in the United Kingdom. If the British pound is expected to appreciate against the dollar, the dollar value of earnings remitted to the parent should ____. The parent may request that the subsidiary ____ in order to benefit from the expectation about the pound.

• A) ​increase; postpone remitting earnings until the pound strengthens
• B) ​decrease; postpone remitting earnings until the pound strengthens
• C) ​decrease; remit earnings immediately before the pound strengthens
• D) ​increase; remit earnings immediately before the pound strengthens

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Definitions:

Concurrent Controls

Focus on what happens during the work process.

Highest Quality

Refers to products, services, or processes that meet or exceed the highest standards and expectations in terms of performance, reliability, and satisfaction.

Internal Control

Occurs through self‐discipline and self‐control.

Formal Administrative Systems

are structured and officially sanctioned processes, procedures, and rules designed to coordinate and control an organization's activities efficiently.