Consider a U.S.MNC with operations in Great Britain.Which of the following are potential risks following a strengthening of the dollar?
A) A pound sterling depreciation may affect operating cash flow in pounds by altering the firm's competitive position in the marketplace.
B) A given operating cash flow in pounds will be converted into a lower dollar amount after the pound depreciation.
C) A pound sterling depreciation may affect operating cash flow in pounds by altering the firm's competitive position in the marketplace,and a given operating cash flow in pounds will be converted into a lower dollar amount after the pound depreciation.
D) none of the options
Correct Answer:
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