What are the relevant cash flows for an international investment:the cash flow produced by the subsidiary in the country whereit operates, or the cash flows in dollars that it sends to its parentcompany?

In translating a foreign subsidiary's financial statements, which exchange rates does the current rate method require for the subsidiary's assets and liabilities? The average exchange rate for the period. O The exchange rate when assets was acquired or liabilities was incurred. The spot exchange rate as of the date of the balance sheet. The estimated exchange rate when accounts were settled in the future.

What are the relevant cash flows for an international investment—the cash flowsproduced by the subsidiary in the country in which it operates or the cash flows indollars that it sends to its parent company? Explain.

A). Why do we need to translate the financial statement of foreign operations? B). Explain the concepts of local currency, functional currency and presentation, orrency with example. K C). How is the profit or loss from translating foreign operations' financial statements from local currency to functional currency treated? D) How are the profit and loss from translating foreign ope ions' financial statements from functional currency to presentation currency treated?

What are the nonfinancial measures available to MNCs for evaluating foreign subsidiary performance?

1. Explain the rule for translating the Financial Statements of Foreign Operations from Local Currency to Functional Currency. 2. Explain the rule for translating the Financial Statements of Foreign Operations from Functional Currency to Presentation Currency

nee   1. If the foreign subsidiary of a US Corporation uses the currency of the region as its functional currency, which of the following methods would they use and where would gains and losses be reported?   A. Remeasurement, Temporal method. Income statement. B. Translation, Current Rate method. Comprehensive income. C. Remeasurement, Temporal method. Comprehensive income. D. Translation, Current Rate method. Income statement     2. If the foreign subsidiary of a US Corp uses US currency as its functional currency, which of the following methods would they use? Where would gains and losses be presented?     A. Translation, Current Rate method. Comprehensive Income B. Translation, Current Rate method. Income statement C. Remeasurement, Temporal method. Comprehensive income. D. Remeasurement, Temporal Method. Income Statement

Firms use a variety of methods to conduct business internationally. Consider the case of an MNC conducting international business via the use of international trade. When this method of conducting international business is used, cash inflows come from ? while cash outflows flow to ? .

What effect does a weakening in U.S dollar have on Net Income for subsidiaries of U.S companies?

Which of the following situation is NOT the case that a domestic company is exposed to foreign currency exchange risk? a. A firm commitment to enter into a foreign currency transaction. b. A forecasted foreign currency transaction that has a high probability of occurrence. c. An investment in a domestic subsidiary. d. An actual existing foreign currency transaction that results in recognition of assets or liabilities.