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 is called a
A)Interdependent foreign operation
B)Integrated foreign operation
C)Self-sustaining foreign operation
D)Has no special name

Question

Quizplus · Accepted Answer

An "integrated foreign operation" is defined as a foreign operation that is financially or operationally interdependent with the 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 parent company. This term is commonly used in accounting and finance literature.

A Foreign Operation Which Is Financially or Operationally Interdependent with the Canadian