In preparing their financial statements, U.S. firms with sales 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 2014 Annual Report, IBM made the following statement: "As with all companies with a similar global business profile, with the dollar strengthening, the company also expects that currency will have a significant translation impact on its profit growth."
a. What does the report mean by "the dollar strengthening"?
b. As a U.S.-based company, doesn't IBM benefit when the U.S. dollar is stronger? Briefly explain.