When the U.S.currency appreciates against other currencies,it becomes more expensive for American companies that have branch operations overseas,when they declare foreign profits in the United States.

Question

Quizplus · Accepted Answer

Appreciation of the U.S. dollar can have negative implications for American companies that have branch operations overseas. The reason for this is that profits from abroad must be exchanged for dollars at a more expensive rate of exchange, reducing the amount of profit when measured in dollars.