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

A U.S.-based MNC with a subsidiary in Barbados that generates substantial net cash inflows denominated in Barbados dollars would benefit from an appreciation of the Barbados dollar. This is because an appreciation of the Barbados dollar would increase the value of the subsidiary's cash inflows when they are translated into U.S. dollars for consolidation purposes.

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