What does the article mean by a weaker euro

Reference no: EM131022752

In preparing their financial statements, U.S. firms with sales abroad in foreign currencies have to engage in "foreign currency translations"; that is, they have to convert foreign currency values into U.S. dollars. In its 2012 Annual Report, McDonald's made the following statement: "In 2012, foreign currency translation had a negative impact on [reported revenue and profits] primarily due to the weaker Euro, along with most other currencies."

a. What does the article mean by a weaker euro?

b. As a U.S.-based company, doesn't McDonald's benefit when the U.S. dollar is stronger?

Reference no: EM131022752

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