Consider a U

question 92

Multiple Choice

Consider a U.S.-based MNC with a wholly-owned French subsidiary. Following a depreciation of the dollar against the euro, which of the following best describes the mechanism of any effect of the depreciation?

• A)The change in the cash flow in euro due an alteration in the firm's competitive position in the marketplace is in part a function of the elasticity of demand for the firm's product.
• B)A given operating cash flow in euro will be translated to a higher U.S. dollar cash flow regardless of the firm's hedging program.
• C)Both a and b
• D)None of the above

---

Definitions:

Categorisation Theory

A psychological theory that describes how individuals group objects, people, or events into categories based on common attributes or meanings.

Causal Language

Refers to the use of linguistic expressions that denote cause-and-effect relationships.

Geometric Figures

Shapes or forms that are defined in mathematics and geometry, such as circles, squares, and triangles.

Human Properties

Characteristics or attributes that are inherent or typically associated with humans, such as cognitive abilities or emotions.