Explanation

Since EUR/USD represents the amount of EUR per 1 USD, and EUR/GBP represents the amount of EUR per 1 GBP, we can analyze the exchange rate relationships:

• EUR/USD = EUR per USD
• EUR/GBP = EUR per GBP

For a US-based company with European operations, when the EUR strengthens relative to USD:

• EUR/USD increases (more EUR per USD)
• This means it takes more USD to buy the same amount of EUR
• When translating European revenues (in EUR) to USD, the company gets fewer USD for each EUR of revenue
• Therefore, reported revenues in USD decrease

The correct answer is C: higher for USD than GBP because the EUR/USD exchange rate has a more direct impact on the company's USD-denominated earnings than EUR/GBP.