"dubas co. is a u. s.-based mnc that has a subsidiary in germany and another subsidiary in austria. both subsidiaries frequently remit their earnings back to the parent company. the german subsidiary generated a net outflow of €2,000,000 this year, while the austrian subsidiary generated a net inflow of €1,500,000. what is the net inflow or outflow as measured in u. s. dollars this year? the exchange rate for the euro is $1.05"

$525,000

Explanation:

The computation of the net inflow or outflow is shown below:

= Total outflow - total inflow

where,

Total outflow = ∈2,000,000 × $1.05 = $2,100,000

Total inflow =  ∈1,500,000 × $1.05 = $1,575,000

Now put these values to the above formula  

So, the value would equal to

= $2,100,000 - $1,575,000

= $525,000

This amount shows a net outflow as total outflow is greater than the total inflow.

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