If a U.S. firm's expenses are more susceptible to exchange rate movements than its revenue is, the firm will ____ if the dollar ____.

Name: If a U.S. firm's expenses are more susceptible to exchange rate movements than its revenue is, the firm will ____ if the dollar ____.
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Question

​If a U.S. firm's expenses are more susceptible to exchange rate movements than its revenue is, the firm will ____ if the dollar ____.

Quizplus · Accepted Answer

If a U.S. firm's expenses are more susceptible to exchange rate movements than its revenue, it will benefit if the dollar strengthens because its expenses in foreign currency terms will decrease, reducing overall costs.

​If a US Firm's Expenses Are More Susceptible to Exchange Rate Movements

If a US Firm's Expenses Are More Susceptible to Exchange Rate Movements