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US multinational and currency denomination for offshore oper

Select a U.S. multinational company. In terms of currency denomination,
Discuss how the firm prices its revenues and costs.
For MNE's ( MULTINATIONAL ENTERPRISES) with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits.
Using this information
what do you think would be the effect of Increases/decreases in the dollar's exchange value on the firm's profitability?

Carbaugh, Robert J. International Economics, 10th edition. Mason, Ohio: Thomson/South-Western. 2005.

Solution Preview

We will select the US multinational Google. Google has today operations in several countries all over the world, including developing countries like India. Google has set up huge Research & Development centres in India to take advantage of 1) India's abundant world class IT professionals/ workforce and 2)significant cost savings due to weaker currrency and cheap labor.

The workforce in India is generally involved in research and development, information technology services ...

Solution Summary

We will select the US multinational Google. Google has today operations in several countries all over the world, including developing countries like India.

$2.19