Generally, MNCs with less foreign costs than foreign revenues will be ____ affected by a ____ foreign currency.
A)favorably; stronger
B)not; stronger
C)favorably; weaker
D)not; weaker
E)B and D

Question

Quizplus · Accepted Answer

MNCs with less foreign costs than foreign revenues benefit when the foreign currency strengthens because their revenues in foreign currency terms increase more than their costs when converted back to their home currency.

Generally, MNCs with Less Foreign Costs Than Foreign Revenues Will