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4 . Assume an MNC establishes a subsidiary where it has no other existing business . The present value of parent cash flows from this
4 . Assume an MNC establishes a subsidiary where it has no other existing business . The present value of parent cash flows from this subsidiary is more sensitive to exchange rate movements when a . the parent finances the entire investment b . the subsidiary finances most of the investment by local borrowing C . the parent finances most of the investment d . the subsidiary finances the entire investment by local borrowing
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