Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsi

Question

Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Greece. Both subsidiaries frequently remit their earnings back to the parent company. The German subsidiary generated a net outflow of €2,000,000 this year, while the Greek subsidiary generated a net inflow of €1,500,000. What is the net inflow or outflow as measured in U.S. dollars this year? The exchange rate for the euro is $1.05.
A) $3,675,000 outflow
B) $525,000 inflow
C) $210,000 outflow
D) $525,000 outflow

Explanation / Answer

Net outflow would be (2,000,000-1,500,000)/*1.05= 525,000 D)

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