Consider two different foreign subsidiaries of Georgiaminus−Pacific Wood Products Inc. The first subsidiary mills trees in Canada and ships its entire product to the Georgiaminus−Pacific U.S. The second subsidiary is also owned by the parent firm but is located in Japan and retails tropical hardwood furniture that it buys from many different sources. The first subsidiary is likely a/an ________ foreign entity with most of its cash flows in U.S. dollars, and the second subsidiary is more of a/an ________ foreign entity. Question content area bottom Part 1 A. selfminus−sustaining; integrated B. domestic; integrated C. selfminus−sustaining; domestic D. integrated; selfminus−sustaining
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S. This subsidiary primarily operates to serve the parent company in the U.S. and generates cash flows in U.S. dollars. This indicates that it is dependent on the parent company for its revenue and is not self-sustaining in terms of generating its own cash flows in Show more…
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