Determining foreign exchange

Reference no: EM1346073

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.

Reference no: EM1346073

Questions Cloud

What is the change in momentum of the ball : A 0.174kg softball is pitched horizontally at 26m/s. the ball moves in the opposite direction at 38m/s after it is hit by the bat.

Discuss the effect of operating leverage : Starbucks in 2004 declared that it will increase rates at its stores before the year. Analysts expect rates to increase by 4% to 5 percent. Rates are going up to adjust for increases in dairy products & rents.

Explain major functions of communication : Explain Major Functions of Communication - Describe the major functions of communication, Show barriers to effective communication

Financial risks-conducting international business : Can you please help with identifying what the financial risks of conducting business internationally is and also, describe the significance of foreign exchange rate risk and how this risk can be mitigated?

Determining foreign exchange : 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..

Show the organizations customer base : Find five main points you plan to make about the values of having a diverse workforce, and present a detailed sample agenda for your meeting.

What is magnitude of the force on the box : Clouds in the tropics tend to move from east to west. Consequently, which rhyme best explains a rainbow seen in the tropics.

Foreign exchange risk-exchange rates : In 250 to 350 words, describe foreign exchange risk and provide an example that examines how foreign exchange rates could cause a loss to the firm.

Creating webpage using css : In creating a web page, depending on the information you are trying to convey. What are CSS?

User Account

All Pages