Consider a U.S.-based MNC with a wholly-owned French subsidiary.Following a depreciation of the dollar against the euro,which of the following best describes the mechanism of any effect of the depreciation?
A) The change in the cash flow in euro due an alteration in the firm's competitive position in the marketplace is in part a function of the elasticity of demand for the firm's product.
B) A given operating cash flow in euro will be translated to a higher U.S.dollar cash flow regardless of the firm's hedging program.
C) The change in the cash flow in euro due an alteration in the firm's competitive position in the marketplace is in part a function of the elasticity of demand for the firm's product,and a given operating cash flow in euro will be translated to a higher U.S.dollar cash flow regardless of the firm's hedging program.
D) none of the options
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