?

FreezeIt Inc. is a manufacturer of refrigeration systems based out of the United States
with one subsidiary in Canada. The Canadian subsidiary exports all of its manufactured
products to the United States and does not currently sell any of its manufactured
products in Canada. The Canadian subsidiary incurs all of its expenses in Canadian
dollars and all of its revenues are in U.S. dollars. The U.S. operations are conducted
only in U.S. dollars. What financial impact will a rise in the Canadian dollar against the
U.S. dollar have on the Canadian subsidiary assuming no operational changes?