Final answer:
The idea that a U.S.-based MNC's value would increase if the Euro weakens is false because lower Euro values would translate to lower dollar-denominated profits from European subsidiaries. This is coupled with the dynamic that lower U.S. interest rates could lead to a depreciation of the dollar against the Euro.
Step-by-step explanation:
Whether the value of a U.S.-based Multinational Corporation (MNC) will increase if the value of the Euro weakens over time is false. Here's why: If an MNC has foreign subsidiaries in Europe and the value of the Euro depreciates, the revenues and profits of those subsidiaries, when converted back into U.S. dollars, will be lower. Therefore, the overall value of the MNC may consequently decrease due to poorer performance of the European subsidiaries in dollar terms.
In contrasting economic scenarios, lower U.S. interest rates tend to make U.S. assets less desirable than those in the European Union. This leads to a decreased demand for dollars and an increased supply. One could expect the value of the dollar to depreciate in relation to the Euro, as per the specified reference.
Also, it's worth mentioning that we live in a global world where currency exchange rates have vast implications on international trade and investments. A weaker dollar can affect the cost of U.S. imports and attractiveness of U.S. exports, as well as the value of foreign investments.