A foreign subsidiary with more susceptible expenses than revenue to exchange rate movements will be favorably affected by an appreciation of the foreign currency.

Name: A foreign subsidiary with more susceptible expenses than revenue to exchange rate movements will be favorably affected by an appreciation of the foreign currency.
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Question

Quizplus · Accepted Answer

An appreciation of the foreign currency would increase the cost of expenses more than the revenue, negatively impacting the subsidiary's financial position.

A Foreign Subsidiary with More Susceptible Expenses Than Revenue to Exchange