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Business, 28.11.2019 23:31 jeanieb

Scenario: color-me-green, inc. color-me-green, inc., a u. s.-based clothing merchant, has started doing business internationally. having subsidiaries in several countries at year-end, the company must integrate the financial information from all its subsidiaries into the u. s. home office. suppose country a has a currency called the pulse (p). at the beginning of the year, the exchange rate between the pulse and u. s. dollar was p150/$. the inflation rate in country a is running at an annual rate of 250 percent, whereas inflation in the u. s. is running at 2 percent. which of the following would most likely be the new exchange rate that color-me-green can expect at the end of the year? a) p525/$b) p514.70/$c) p43.71/$d) $43.71/p

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