1. Our foreign subsidiary is supposed to pay us in Mexican Pesos in six months. What happens to the amount of money we will receive if the Mexican Peso rapidly appreciates? What happens if it vastly depreciates? How does this affect the bottom line of the parent company?

2. Can a MNC allocate profits to parent and host divisions for tax purposes?

3.A car dealership sells cars, car parts, and window decals. If it uses the ABC method of inventory control, which items get which labels? How might they be tracked?