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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.

1 Answer

6 votes

Answer:

c. unfavorably, favorably affected

Step-by-step explanation:

Since when the dollar is powerful the current of foreign purchased few of U. S dollar and in the case when the dollar is weak the condition is opposite

Therefore at the time of powerful dollar, the consolidated earning MNC are unfavorably affected and at the time of weakens, it is favorably affected

Hence, the correct option is c.

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