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

​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.

Quizplus · Accepted Answer

If the Singapore dollar appreciates against the U.S. dollar, it means that the Singapore dollar has become stronger and can buy more U.S. dollars. Therefore, when the U.S. company's Singaporean subsidiary repatriates its earnings to the U.S., it will receive more U.S. dollars for the same amount of Singaporean dollars earned. This will result in a favorable effect on the consolidated earnings of the U.S. company.

​If the Singapore Dollar Appreciates Against the U

If the Singapore Dollar Appreciates Against the U