Raton Co, is a U.S. company that has net inflows of 100 million Swiss francs and net outflows of 100 million British pounds. The present exchange rate of the Swiss franc is about $0.70 while the present exchange rate of the pound is $1.90, Paton Co, has not hedged these positions. The 5 wiss franc and British pound are highly correlated in their movements against the dollar. Explain whether Raton will be favorably or adversely affected if the dollar weakens apainst foreign currencies over time. Raton Co, will be affected because dollar outhlows and inflows will be to a greater degree than the dollar value of but the dollar value of is larger, and will be