Purchase Solution

how many US dollars the French subsidiary contributes to earning

Not what you're looking for?

Ask Custom Question

Last year, the French marketing subsidiary of International Pharmaceuticals Corporation, (IPC) a New Jersey based drug manufacturer, earned 700,000 euros. This year, partly due to a weaker U.S. dollar, the French subsidiary will earn 900,000 euros. Last year the exchange rate was 1.2 euros per dollar, and this year, it is 1.0 euros per dollar. Calculate how many US dollars the French subsidiary contributes to IPCs earnings in each year.

Purchase this Solution
Solution Summary

The solution explains how to caclulate the earnings in dollars given the earnings in euros

Solution Preview

We use the exchange rate to calculate the earnings in U.S. $. Last year the earnings in Euro were 700,000. The exchange ...

Purchase this Solution
Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Currency conversion calculation

    How many French Francs will it take to purchase that amount of dollars.?

  • Balance of payments

    The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. d.

  • Financing foreign operations - tax considerations

    Thanks Suppose Navistar's Canadian subsidiary sells 1,500 trucks monthly to the French affiliate at a transfer price of $27,000 per unit.

  • Balance of Payments

    The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. d.

  • U.S. banking overseas

    317687 Balance of payments Explain how the topic you chose relates to the growth of U.S. banking overseas. Include information how your topic contributes to interdependence among economies and financial markets, and to global financial stability.

  • Foreign exchange currency risk

    86810 How much in us dollars did the firm save by eliminating its foreign exchange currency risk with its forward market hedge?

  • Optimal financing and investment strategy for your scenario

    Due to this the earning available to the share holders will increase and hence there earning per share will increase. 3. How does the source of capital affect the subsidiary and parent organization?

  • global finance

    On the other hand if the home company has sold goods to the subsidiary and is expecting payments, its earning could improve because it will receive more dollars for the same payment.

  • multinational company

    In other words, the Indian rupee earned by subsidiary will be able to buy less amount of dollars that will be transferred to the parent company in USA. The situation will be vice versa in the case of weakening of dollar.

View More Related Solutions