Asked by Shannon Forbes on Jul 02, 2024
Verified
What happens when the value of dollar drops?
A) The earnings of a U.S.company with national operations increase.
B) The earnings of a U.S.company with national operations decrease.
C) The earnings of a U.S.company with international operations increase.
D) The earnings of a U.S.company with international operations decrease.
Value Of Dollar
The purchasing power of the U.S. dollar, influenced by factors such as inflation, interest rates, and economic conditions.
- Understand the impact of currency valuation changes on international business operations.
Verified Answer
DF
Delories Freeman7 days ago
Final Answer :
C
Explanation :
When the value of the dollar drops, a U.S. company with international operations benefits because its foreign earnings increase in value when converted back to dollars. This can lead to higher reported earnings.
Learning Objectives
- Understand the impact of currency valuation changes on international business operations.
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