Drysdale Co. is a U.S. firm considers to establish a Chinese subsidiary that produces cell phones in China and sells them in Singapore. This subsidiary pays its wages and its rent in Chinese yuan. The cell phones sold to Singapore are denominated in Singapore dollar. Assume that Drysdale Co. expects that the Chinese yuan will continue to stay stable against the dollar. The subsidiary's main goal is to generate profits for itself and it reinvests the profits. It does not plan to remit any funds to the U.S. parent. Drysdale Co. also conducts the assessment of the country risk of China. Drysdale has identified various political and financial risk factors, as shown below where 5(1) is the best(worst)value/lowest(highest) risk. Assigned Rating Political Risk Factor Blockage of fund transfers Bureaucracy Assigned Weight 40% 60% Assigned Rating Financial Risk Factor Interest rate Inflation Exchange rate Competition Growth u Auw Assigned Weight 15% 25% 20% 20% 20% Drysdale Co. has assigned an overall rating of 53 percent to political risk factors and of 47 percent to financial risk factors. Drysdale Co. will not establish the subsidiary in China if the country risk rating is below 3.0. What is the country risk rating of China and should Drysdale Co. establish the subsidiary in China? 06.15; yes 03.01; yes 02.83; no 01.98; no If Drysdale Co. establishes the subsidiary in China and later finds out that the Chinese subsidiary needs to borrow money to finance its expansion, which currency should the Chinese subsidiary borrow in order to reduce its exchange rate risk? Singapore dollar OU.S. dollar Chinese yuan