Consider a U

Consider a U.S. MNC with operations in Great Britain. Which of the following are potential risks following a strengthening of the dollar?

A) A pound sterling depreciation may affect operating cash flow in pounds by altering the firm's competitive position in the marketplace.
B) A given operating cash flow in pounds will be converted into a lower dollar amount after the pound depreciation.
C) Both a and b
D) None of the above

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