assume that you live in united states and invest $60000 to establish a language school called escuela de ingles in mexico city,mexico. you set up a small subsidiary in mexico, with an office and an attached classroom that you lease. you hire local individuals in mexico who can speak english and teach it to others. your school offers two types ofcourses: a 1 month structured course in english and a 1 week intensive course for individuals who already know english but want to improve their skills before visiting the united states. you advertise both types of teaching services in the local newspapers. all revenue and expenses associates with your business are denominated in mexican pesos. your subsidiary sends most of the profits from the business in mexico to you at the end of each month. although your expenses are somewhat stable, your revenue varies with the number of clients who sign up for the courses in mexico