Assume a U

question 15

Multiple Choice

Assume a U.S. firm initiates direct foreign investment in the U.K. If the British pound is expected to appreciate against the dollar, the dollar value of earnings remitted to the parent should ____. The parent may request that the subsidiary ____ in order to benefit from the expectation about the pound.

• A) increase; postpone remitting earnings until the pound strengthens
• B) decrease; postpone remitting earnings until the pound strengthens
• C) decrease; remit earnings immediately before the pound strengthens
• D) increase; remit earnings immediately before the pound strengthens

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Definitions:

Blood

Circulatory fluid of a closed circulatory system. Of vertebrates, fluid connective tissue consisting of plasma and cellular components (red cells, white cells, platelets) that form in bones.

Tubular Secretion

A process in the kidneys where substances are actively transported from blood into the urine through the tubules.

Peritubular Capillaries

In a kidney, capillaries that branch from an efferent arteriole; surround and exchange substances with a kidney tubule.

Filtrate

Filtrate refers to the fluid that has passed through a filter, which can include the removal of solids from liquids or gases.