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:

AARP

A membership organization for people age 50 and older dedicated to addressing their needs and interests.

Workforce

The group of people who are employed in a company, industry, or country.

Economic Times

A term that might refer to periods classified according to prevailing economic conditions or to a newspaper focusing on economic and financial news.

Corporate Buyout

The acquisition of controlling shares in a company, often resulting in a change in management and strategy.