Intro

Rontel AC is a U.S. firm doing business with Canada. It has Canadian competitors selling both in Canada and the U.S.. What is the impact of a depreciation of the Candadian dollar on its ____

Part 1

sales in the U.S.?

U.S. sales increase.

U.S. sales are not affected.

U.S. sales decrease.

Part 2

U.S. dollar cash flow from exports, invoiced in U.S. dollars?

Dollar cash flow from exports decreases.

Dollar cash flow from exports is not affected.

Dollar cash flow from exports increases.

Part 3

U.S. dollar cash flow from exports, invoiced in Canadian dollars?

Dollar cash flow from exports decreases.

Dollar cash flow from exports is not affected.

Dollar cash flow from exports increases.

Part 4

U.S. dollar cost of importing supplies invoiced U.S. dollars?

Dollar cost of imports increases.

Dollar cost of imports decreases.

Dollar cost of imports is not affected.

Part 5

U.S. dollar cost of importing supplies invoiced Canadian dollars?

Dollar cost of imports increases.

Dollar cost of imports is not affected.

Dollar cost of imports decreases.