Kizspy | Question: 47
(Choose 1 answer)
Consider a U.S. MNC with operations in Great Britain. Which of the following are potential risks following a
strengthening of the dollar?
A. (i) A pound sterling depreciation may affect operating cash flow in pounds by altering the firm's competitive
position in the marketplace.
B. (ii) A given operating cash flow in pounds will be converted into a lower dollar amount after the pound
depreciation.
C. Both (i) and (ii)
D. None of these
