If a U.S.-based MNC focused completely on importing, then its valuation would likely be adversely affected if most currencies were expected to appreciate against the dollar over time.

Question

Quizplus · Accepted Answer

If most currencies are expected to appreciate against the dollar, then it would become more expensive for the U.S.-based MNC to import goods, as it would need to exchange more dollars to purchase the same amount of foreign currency. This would likely lead to decreased profitability and lower valuation for the company.

If a US-Based MNC Focused Completely on Importing, Then Its Valuation Would