Consider a U

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

A) The cash flow in euro could be altered due a change in the firm's competitive position in the marketplace.
B) A given operating cash flow in euro will be translated to a higher U.S. dollar cash flow.
C) Both a and b
D) None of the above

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