Consider a U.S based multinational enterprise with a wholly owned subsidiary in France. Which of the following statements is NOT valid following a depreciation of the U.S. dollar relative to the euro?

1. The cash flow from the subsidiary may be affected by its competitive position following the exchange rate move.

2. A given amount of operating cash flow from the subsidiary would be converted into more U.S. dollars.

3. If the subsidiary sources its raw materials from the U.S. but sells the products exclusively in the Euro zone its competitive position would bot be impacted

4. The volume of products manufactured in France and sold back in the U.S. is likely to decline.