Sioux City Meat Packers (SCMP) is an American company with a wholly-owned German subsidiary. Suppose the EUR depreciates against the USD. Which of the following describes the subsequent conversion effect?

Multiple Choice

• none of the options

• Cash flows in EUR could be altered due a change in the firm's competitive position in the marketplace.

• Operating cash flows in EUR be reflected in higher USD cash flows.

• Cash flows in EUR could be affected due a change in the SCMP's competitive position in the market place, and a given operating cash flow in EUR will be reflected in a higher USD cash flow.