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Starbucks, a U.S. company, has a subsidiary in Argentina that sells coffee. All costs and revenues are in Argentine pesos. Profits from the subsidiary are
Starbucks, a U.S. company, has a subsidiary in Argentina that sells coffee. All costs and revenues are in Argentine pesos. Profits from the subsidiary are sent back to the parent company in the U.S. What would happen to the value of the subsidiary if the peso weakened, all else equal? The subsidiary would be more valuable The subsidiary would be less valuable The subsidiary would be the same value
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