A U.S. MNC has subsidiaries in Britain and Japan. Assume the revenue in both subsidiaries in local currency remains the same. British WOS WOS Revenue £100M ¥10 Bn exchange $1.7/£ rate to $1.6/£ Japanese ¥ 85.12/$ to ¥ 77.12/$ What will be the impact on the $ amounts from each WOS? O Increase from British WOS; Increase from Japanese WOS O decrease from British WOS; decrease from Japanese WOS O Increase from British WOS; decrease from Japanese WOS O decrease from British WOS; Increase from Japanese WOS

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A U.S. MNC has subsidiaries in Britain and Japan.
Assume the revenue in both subsidiaries in local
currency remains the same.
British
WOS WOS
Revenue £100M ¥10 Bn
exchange $1.7/£
rate
to
$1.6/£
Japanese
¥
85.12/$
to ¥
77.12/$
What will be the impact on the $ amounts from
each WOS?
O Increase from British WOS; Increase from Japanese
WOS
O decrease from British WOS; decrease from Japanese
WOS
O Increase from British WOS; decrease from Japanese
WOS
O decrease from British WOS; Increase from Japanese
WOS
Transcribed Image Text:A U.S. MNC has subsidiaries in Britain and Japan. Assume the revenue in both subsidiaries in local currency remains the same. British WOS WOS Revenue £100M ¥10 Bn exchange $1.7/£ rate to $1.6/£ Japanese ¥ 85.12/$ to ¥ 77.12/$ What will be the impact on the $ amounts from each WOS? O Increase from British WOS; Increase from Japanese WOS O decrease from British WOS; decrease from Japanese WOS O Increase from British WOS; decrease from Japanese WOS O decrease from British WOS; Increase from Japanese WOS
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