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:

Demand Curve

A visual illustration that shows how the amount of a product consumers want to buy varies with changes in its price.

Public Entertainment

Activities or performances designed for the enjoyment of the public, often accessible to a wide audience and including events such as concerts, movies, and sporting events.

Dominant Strategy

A strategy that yields the best payoff for a player, regardless of what strategies other players use.

Wealth

The total value of all the economic resources owned by an individual or entity.