Other Things Being Equal, a Foreign Subsidiary in China Would

question 43

Multiple Choice

Other things being equal, a foreign subsidiary in China would more likely be divested by the U.S. parent if new information caused the parent to suddenly anticipate that:

• A)the Chinese yuan would depreciate in the future.
• B)the Chinese yuan would appreciate in the future.
• C)the Chinese yuan would remain somewhat stable in the future.
• D)none of the above; the value of the Chinese yuan has no impact on the feasibility of a divestiture.

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Definitions:

Vertical

Vertical often describes a direction or orientation that is upright, perpendicular to the ground or the plane of the horizon.

Economic Restructuring

Changes in the economic system, often due to globalization, technological advancement, or shifts in industry, affecting employment and productivity.

Plant Closings

The process of shutting down manufacturing facilities or plants, often resulting in job losses and economic impacts on communities.

Layoffs

The act of temporarily or permanently dismissing employees from their jobs, often as a cost-cutting measure by companies.