If a USIndustrial Subsidiary in France Sells in Dollars for European Sales

question 72

Multiple Choice

If a U.S.industrial subsidiary in France sells in dollars for European sales

• A) there will be no exchange risk.
• B) exchange risk will be encountered between the euro and the dollar.
• C) the subsidiary will not be able to use the local debt markets.
• D) their sales force will be challenged to meet local needs.

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Definitions:

Dissenting Shareholders

Shareholders who disagree with certain corporate actions, such as mergers or acquisitions, and are legally entitled to certain rights, like receiving payment for their shares.

1999 Amendments

Refers to specific changes or modifications made to a law, regulation, or policy in the year 1999, but additional context is needed to determine the exact nature of these amendments.

Right of Dissent

The right of dissent allows individuals or group members to express disagreement or opposition to decisions or policies without fearing retaliation or punishment.

Compulsory Share Exchange

A corporate action where a company acquires all the shares of another company, usually in exchange for its own shares, mandatorily.