When the dollar strengthens, the reported consolidated earnings of U.S. based MNCs are _______ affected by translation exposure. When the dollar weakens, the reported consolidated earnings are __________ affected.
A. favorably; favorably affected but by a smaller degree
B. favorably; favorably affected by a higher degree
C. unfavorably; favorably affected
D. favorably; unfavorably affected
Answer:C
When the dollar strengthens, the reported consolidated earnings of U.S. based MNCs are _______ affected by translation exposure. When the dollar weakens, the reported consolidated earnings are __________ affected.
A. favorably; favorably affected but by a smaller degree B. favorably; favorably affected by a higher degree C. unfavorably; favorably affected D. favorably; unfavorably affected