​Assume a U

Multiple Choice

​Assume a U.S. MNC initiates direct foreign investment in the United Kingdom. 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