1.

Other things being equal, a foreign subsidiary in China would more likely be divestedby the U.S. parent if new information caused the parent to suddenly anticipate that:

A. the Chinese yuan would depreciate in the future.
B. the Chinese yuan would appreciate in the future.
C. the Chinese yuan would remain somewhat stable in the future.
D. none of the above; the value of the Chinese yuan has no impact on the feasibility of a divestiture.
Answer» B. the Chinese yuan would appreciate in the future.


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