Consider Two Different Foreign Subsidiaries of Georgia-Pacific Wood Products Inc

question 7

Multiple Choice

Consider two different foreign subsidiaries of Georgia-Pacific Wood Products Inc. The first subsidiary mills trees in Canada and ships its entire product to the Georgia-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.

• A) domestic; integrated
• B) self-sustaining; domestic
• C) integrated; self-sustaining
• D) self-sustaining; integrated

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