Impact of Project on Prevailing CFs

If an MNC exports to a country, then establishes a subsidiary to produce and sell the same product in the country, then cash flows from prevailing operations would likely be (adversely/favorably) affected by the project. (circle the right one)

If an MNC establishes another foreign manufacturing subsidiary that buys components from the parent, the cash flows from prevailing operations would likely be (adversely/favorably) affected by the project. (circle the right one)