If a U.S.-based MNC focused completely on importing, then its valuation would likely be adversely affected if most currencies were expected to appreciate against the dollar over time.

Question

Quizplus · Accepted Answer

If most currencies were expected to appreciate against the dollar over time, then the cost of the MNC's imports would increase, thereby reducing its profitability and negatively affecting its valuation.

If a US-Based MNC Focused Completely on Importing, Then Its Valuation Would