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    effect of increases/decreases in the dollar's exchange value on the firm's profitability

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    1. Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability?

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    Solution Summary

    What do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability?

    $2.19