If the Singapore dollar appreciates against the U.S. dollar over this year, the consolidated earnings of a U.S. company with a subsidiary in Singapore will be ____ as a result of the exchange rate movement.

Question

Quizplus · Accepted Answer

If the Singapore dollar appreciates against the U.S. dollar, it means that it can buy more U.S. dollars. Therefore, when the U.S. company's Singapore subsidiary converts its earnings in Singapore dollars to U.S. dollars, it will receive more U.S. dollars than before. This will increase the consolidated earnings of the U.S. company, so it will be favorably affected.

If the Singapore Dollar Appreciates Against the U