Assume that the parent company's home currency is weak today and will strengthen over time relative to a foreign subsidiary's currency. Develop a hypothetical example
Assume that the parent company's home currency is weak today and will strengthen over time relative to a foreign subsidiary's currency. Develop a hypothetical example for the parent/subsidiary currency pair (using currency amounts and exchange rates of your choosing) that shows whether funds to be sent back to the US Parent from the foreign subsidiary in the future will convert to a larger or smaller amount of USD when converted to USD at the two points in time. Use the 'Now and Then' framework presented in Week 1 to describe the situation you develop, and then summarize your conclusion in a sentence or two.
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