A U. S.-based company decides to invest capital in an emerging market operation that has a lower expected return rate compared to the expected return for an alternative domestic operation. Which of the following statements correctly supports this decision? a. Management expects the U. S. dollar to decline in value relative to the foreign location's currency.
b. Management expects inflation to increase in the emerging market compared to the U. S. inflation rate.
c. Management expects inflation to decrease in the U. S. compared to the foreign location's inflation rate.
d. Management expects the U. S. dollar to strengthen in value relative to the foreign location's currency.