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Question 20 5 pts ABC Inc (US). plans to create and finance a subsidiary in Mexico that produces computer components a low cost and
Question 20 5 pts ABC Inc (US). plans to create and finance a subsidiary in Mexico that produces computer components a low cost and exports them other countries. It has no other international business. The subsidiary will produce computers and export them to Canada and will invoice the products in US dollars. The value of C$ are expected to remain very stable against dollars. The subsidiary will pay wages, rent, and other operating costs in Mexican pesos, The subsidiary will remit US$ earnings monthly to the parent. How ABC Inc.'s cash flow be affected if Mexican peso depreciates over time? O unfavorably affected O not affected favorably affected O do not know
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