Which of the Following Is Likely to Happen to the Bottom-Line

question 23

Multiple Choice

Which of the following is likely to happen to the bottom-line performance of subsidiaries if a country devalues its currency?

• A) There will be an increase in export sales of subsidiaries.
• B) The price of subsidiary export goods will be higher for foreign buyers.
• C) The currencies of foreign buyers will have lower purchasing power.
• D) There will be a decrease in the cost of imported materials and supplies for the subsidiary.

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Definitions:

Italy

A country in Southern Europe, known for its rich history, culture, and significant contributions to art, science, fashion, and cuisine.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption (the output).

Germany

A country in Central Europe known for its rich history, cultural heritage, and economic prowess.

Production

The process of creating goods or services using inputs such as labor, raw materials, and machinery.