If a US Company Exports to Canada and the Sale Is Denominated

question 57

Multiple Choice

If a U.S. company exports to Canada and the sale is denominated in Canadian dollars,which of the following is true?

• A) The U.S. company would report a gain if the U.S. dollar rises against the Canadian dollar.
• B) The Canadian company would report a gain if the Canadian dollar falls against the U.S. dollar.
• C) The U.S. company would report a loss if the Canadian dollar falls against the U.S. dollar.
• D) Exports do not result in a gain or loss.

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Definitions:

Politics

Politics involves the activities, actions, and policies through which people make, preserve, and amend the general rules under which they live.

State Theory

A concept in political science and sociology that analyzes the role and functions of the state in society.

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Elections characterized by a transparent, fair process where multiple political entities have a genuine opportunity to obtain power.

Representative

Someone who is elected or appointed to act or speak for others.