A U.S.-based MNC has a subsidiary in Barbados that generates substantial net cash inflows denominated in Barbados dollars. Given this information, the MNC would ____ from a(n) ____ of the Barbados dollar.

Question

Quizplus · Accepted Answer

Since the subsidiary generates substantial net cash inflows denominated in Barbados dollars, a strengthening (appreciation) of the Barbados dollar will increase the U.S. dollar value of those cash inflows, resulting in a benefit for the parent company. Therefore, the correct answer is A) benefit; appreciation.

A US-Based MNC Has a Subsidiary in Barbados That Generates Substantial