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5. Assume that for each of the past five years, the Japanese subsidiary has reported lower- than-budgeted U.S. Dollar profits and ROI in dollar terms.

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5. Assume that for each of the past five years, the Japanese subsidiary has reported lower- than-budgeted U.S. Dollar profits and ROI in dollar terms. If adjustments are made for the real exchange-rate changes, however, then its performance in each of those five years turns out to be better than the revised budget. Would you recommend closing the Japanese subsidiary? Why or why not

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