A U.S.-based MNC has a subsidiary in Barbados that generates substantial net cash inflows denominated in Barbados dollars. Given this information, the MNC would ____ from a(n) ____ of the Barbados dollar.

Question

Quizplus · Accepted Answer

The MNC would benefit from an appreciation of the Barbados dollar because it would increase the value of the subsidiary's net cash inflows when translated back into U.S. dollars.

A US-Based MNC Has a Subsidiary in Barbados That Generates Substantial