Which of the following operations benefits from appreciation of the firm's local currency?
A) borrowing in a foreign currency and converting the funds to the local currency prior to the appreciation.
B) receiving earnings dividends from foreign subsidiaries.
C) purchasing supplies locally rather than overseas.
D) exporting to foreign countries.

Question

Quizplus · Accepted Answer

Borrowing in a foreign currency and converting the funds to the local currency prior to the appreciation will benefit from appreciation of the firm's local currency.

Which of the Following Operations Benefits from Appreciation of the Firm's