If a Japanese firm sold $10 billion of machinery in US and the US dollar declined against the Japanese currency:
A. the Japanese company will make sure that the difference is paid back to its affiliate.
B. the Japanese company will move funds to the home country.
C. the Japanese firm will report more revenue (in terms of Yen) than if the US dollar had remained stable.
D. the Japanese firm will report less revenue (in terms of Yen) than if the US dollar had remained stable.
Answer:D
If a Japanese firm sold $10 billion of machinery in US and the US dollar declined against the Japanese currency:
A. the Japanese company will make sure that the difference is paid back to its affiliate. B. the Japanese company will move funds to the home country. C. the Japanese firm will report more revenue (in terms of Yen) than if the US dollar had remained stable. D. the Japanese firm will report less revenue (in terms of Yen) than if the US dollar had remained stable.