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.

Question

Quizplus · Accepted Answer

An "integrated foreign operation" is one that is financially or operationally interdependent with the parent company, making its exposure to exchange rate changes similar to if the parent company had conducted the operations directly.

An "Integrated Foreign Operation" Refers To