Dollar value of earnings remitted

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Assume a Canadian firm iniates direct foreign investment in the U. S. the Canadian dollar is expected to depreciate against the U. S. dollar. The C$ dollar value of earnings remitted to the parent Canadian company should:

decrease because the U. S. dollar will buy more Canadian dollars

decrease because the U. S. dollar will buy fewer Canadian dollars

increase because the U. S. dollar will buy more Canadian dollars

increase because the U. S. dollar will buy fewer Canadian dollars

none of the above

Reference no: EM131047250

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