
Explanation:
When EUR strengthens relative to USD:
The correct answer is A: decrease because a stronger EUR relative to USD means the company receives fewer USD when converting its EUR-denominated revenues.
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A US-based company has significant operations in Europe. If EUR strengthens relative to USD, after translating the European revenues into USD, the company's reported revenues most likely:
A
decrease.
B
remain unchanged.
C
increase.
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