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International Finance

14. The Edmonton Oilers (Canada) of the National Hockey League are two time defending Stanley Cup champions. (The Stanley Cup playoff is hockey's equivalent of football's Super Bowl or baseball's World Series.) As is true of all NHL teams, most of the Oilers' players are Canadian. How are the Oilers affected by changes in the Canadian dollar/U.S. dollar exchange rate?

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ANSWER. The fact that the Oilers are paid in Canadian dollars does not affect the answer to this question very much. While the C$ is the currency of denomination, the U.S.$ is the currency of determination. That is, the Canadian dollar salaries paid to the ...

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