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denis-greek [22]
3 years ago
10

Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h

omes using mostly borrowed funds from local banks. Your subsidiary purchases all of its materials from Hong Kong and pays Hong Kong dollar. The Hong Kong dollar is tied to the U.S. dollar. Your subsidiary borrowed funds from the U.S. parent, and must pay the parent $100,000 in interest each month. Australia has just raised its interest rate in order to boost the value of its currency (Australian dollar). The subsidiary’s cost of purchasing materials measured in Australian dollar will ____________. A. increase B. decrease C. not change
Business
1 answer:
Nat2105 [25]3 years ago
4 0

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.  

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how goods are produced often affects an entire society. natural resources, we have learned, are limited. while some natural reso
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While overuse of fossil fuels will cause pollution, world without them is also difficult. A balance is required.

Explanation:

  • Without fossil fuels vehicle transport for conveyance does not happen, food won't be transported, and thus life may come to standstill. It will take sometimes, centuries for the alternative sources to replace fossil fuels.  
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6 0
3 years ago
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QS 5-3 Merchandise accounts and computations LO C2 Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning invent
irakobra [83]

Answer:

a.  $8,900

b.  $7,200

c.  $2,300

d.  $850

Explanation:

<u>Goods Available For Sale Calculation :</u>

Beginning inventory             5,000

Add Net Purchases               3,900

Goods Available For Sale     8,900

<u>Cost of Goods Sold Calculation :</u>

Goods Available For Sale     8,900

Less Ending Inventory          (1,700)

Cost of Goods Sold               7,200

<u>Gross Profit Calculation :</u>

Net Sales                               9,500

Less Cost of Goods Sold     (7,200)

Gross Profit                            2,300

<u>Net Income Calculation :</u>

Gross Profit                            2,300

Less Expenses                      (1,450)

Net Income                               850

6 0
3 years ago
1. Given the nominal interest rate of 17​% and the expected inflation of 13​%, then the value of the real interest rate is ___ ?
Veronika [31]

Answer:

According to fisher equation

(1+nominal Interest rate)=(1+real interest rate)(1+inflation)

1) So 1.17=(1+R)(1.13)

1+R=1.17/1.13

R=1.035-1

R=0.0353

Real interest rate = 3.53 percent

2) (1+NIR)= 1.03*1.04

  1+ NIR= 1.072

NIR= 0.072

Nominal interest rate = 7.2 percent

A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.

A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.

Explanation:

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Answer:

Power is another source other than inheritance.

Hope this helped you!

Explanation:

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