Assume a U.S. firm initiates direct foreign investment in the U.K.. If the British pound is expected to appreciate against the dollar, the dollar value of earnings remitted to the parent should _______. The parent may request that the subsidiary _______ in order to benefit from the expectation about the pound.

• A. increase; postpone remitting earnings until the pound strengthens
• B. decrease; postpone remitting earnings until the pound strengthens
• C. decrease; remit earnings immediately before the pound strengthens
• D. increase; remit earnings immediately before the pound strengthens