In international trade when a U.S. company sells a product in France, the U.S. company experiences an exchange rate gain if the franc depreciates against the dollar before the U.S. exporter collects on its accounts receivable.

Question

Quizplus · Accepted Answer

If the franc depreciates against the dollar, the U.S. company will receive fewer dollars when converting the payment from francs to dollars, resulting in an exchange rate loss, not a gain.

In International Trade When a U