Spotify Sustainable Finance LIC is based in the U$.$S$.$ with two subsidiaries, one located in Canada, andother in Italy.The U$.$S dollar has been depreciating against the Euro.The Canadian dollar has beenappreciating against the U$.$S$.$ dollar.The U$.$S$.$ parent company exports their main merchandise, luxurytrams, in USD. The Canadian subsidiary exports both in USD and in Euro. The Italian subsidiary exports predominantly in Euro.Information about the Canadian subsidiary operations are provided as follows:Canadian Subsidiary information:Sales volumeSales price $($p$/$u$)$Direct cost $($p$/$u$)$DepreciationSelling and administration expenses$800,000$CAD $12$CAD $4\mathrm{.}5$CAD $800,000$CAD $1,200,000$Working capital is expected to stay the same for the next $2$ years $(2025-2026).$Corporate tax rate$25\%$The foreign exchange rate changed from USD $$0\mathrm{.}7/$CAD to USD $$0\mathrm{.}85/$CAD in early $2024$ and is expected to remain the same for the next two years. The weighted average cost of capital is $10\%.$ CAD stands for Canadian dollar, and USD is the U$.$S$.$ dollar.$($a$)$ Provide $3$ factors which differentiate a local Canadian firm and a multinational. Provide an example for each factor. $[3$ marks$]($b$)$ What are the potential effects of the change in exchange rates for the Canadian and Italian subsidiaries? You can assume the above rates. $[2$ marks$]($c$)$ Assuming you need to provide a forecast for the next two years, evaluate the effect of the following scenarios on the potential net present value $($USD $$)$ of the Canadian subsidiary:$-$ No strategic change in the operations$-$ An increase in the selling price by $5\%$ for each of the next $2$ years.$-$ An increase in the volume by $10\%$ with also an increase in price by $8\%.[4$ marks$]($d$)$ If the Spotify's parent company is exporting in USD, is it impacted, in the long$-$term, if the USD continues to depreciate against the Euro? Explain your answer. $[1$ mark$]$