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Gopal Sharma • 38.32K Points
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Q. Assume a U.S. firm initiates direct foreign investment in the U.K.. If the British pound is expected to appreciate against the dollar, the dollar value of earnings remitted to the parent should _______. The parent may request that the subsidiary _______ in order to benefit from the expectation about the pound.

(A) increase; postpone remitting earnings until the pound strengthens
(B) decrease; postpone remitting earnings until the pound strengthens
(C) decrease; remit earnings immediately before the pound strengthens
(D) increase; remit earnings immediately before the pound strengthens
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