The Assets of a Foreign Subsidiary of a U

question 14

Multiple Choice

The assets of a foreign subsidiary of a U.S.multinational corporation will experience a _____________________ if the foreign currency depreciates relative to the U.S.dollar,assuming that the dollar is the currency in which the parent company's assets are denominated.

• A)transaction gain
• B)transaction loss
• C)translation gain
• D)translation loss

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Definitions:

Canterbury Earthquake

A significant seismic event that occurred in the Canterbury region of New Zealand, most notably in February 2011, causing widespread damage and loss of life.

Magnitude

A measure of the amount of energy released by an earthquake; used to compare sizes of earthquakes.

Landslide

The movement of rock, earth, or debris down a slope due to gravity, often triggered by factors like rainfall, earthquakes, or human activity.

Subduction Zone

A region of the Earth's crust where one tectonic plate is being forced under another, often resulting in volcanic activity and earthquakes.