Consider a U.S.-based MNC with a German subsidiary. Following an appreciation of the dollar against the euro, which of the following describes the conversion effect of the appreciation?

		A given operating cash flow in euro will be translated to a higher U.S. dollar cash flow.
		The cash flow in euro could be altered due a change in the firm's competitive position in the marketplace.
		The cash flow in euro could be altered due a change in the firm's competitive position in the market place, and a given operating cash flow in euro will be translated to a higher U.S. dollar cash flow.
		A given operating cash flow in euro will be translated to a lower U.S. dollar cash flow.