A Canadian firm has an integrated foreign operation in the United States.Which of the following statements is true?
A) If the US dollar appreciates, the Canadian dollar value reported in the balance sheet of the assets in the United States will be smaller.
B) If the US dollar depreciates, the Canadian dollar value reported in the balance sheet of the assets in the United States will be larger.
C) If the US dollar depreciates, the Canadian dollar value reported in the balance sheet of the assets in the United States will be smaller.
D) Need more information

Question

Quizplus · Accepted Answer

If the US dollar depreciates, it will take more Canadian dollars to equal the same amount of US dollars, resulting in a smaller reported value of assets in the United States on the Canadian firm's balance sheet.

A Canadian Firm Has an Integrated Foreign Operation in the United