An "Integrated Foreign Operation" Refers To

question 9

Multiple Choice

An "integrated foreign operation" refers to:

• A) a foreign operation which is financially or operationally independent of the Canadian parent company such that the exposure to exchange rate changes is limited to the Canadian company's net investment in the foreign operation.
• B) a foreign operation which is financially or operationally independent of the Canadian parent company such that the exposure to exchange rate changes is similar to the exposure that would exist had the transactions of the foreign operation been undertaken directly by the Canadian parent.
• C) a foreign operation which is financially or operationally interdependent with the Canadian parent company such that the exposure to exchange rate changes is limited to the Canadian company's net investment in the foreign operation.
• D) a foreign operation which is financially or operationally interdependent with the Canadian parent company such that the exposure to exchange rate changes is similar to the exposure that would exist had the transactions of the foreign operation been undertaken directly by the Canadian parent.

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Definitions:

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