Final answer:
It is false that a U.S. company that prefers a strong dollar likely exports more than it imports. A strong dollar makes exports less competitive internationally and can reduce a firm's profits from foreign sales.
Step-by-step explanation:
The statement that a company based in the United States prefers a strong dollar, likely exporting more than it imports, is false. For a U.S. firm selling abroad, a stronger U.S. dollar is disadvantageous because it makes their exports more expensive for foreign buyers.
Conversely, foreign firms selling in the U.S. find a strong dollar advantageous, as it allows them to earn more of their home currency for every dollar's worth of goods they export.
When a U.S. firm earns foreign currency through exports and converts it back to a strong U.S. dollar, fewer dollars are obtained, reducing profits.
Hence, the firm may reduce exports or increase prices to maintain profit margins, which could lead to reduced sales abroad. In essence, a stronger dollar makes U.S. goods less competitive internationally, potentially decreasing export volumes.