Global Corp. is a large, publicly traded firm headquartered in Toronto. The company has substantial Canadian operations and is also invested in a number of businesses in different countries around the world. The functional currency of Global, the parent company, is the Canadian dollar, and the presentation currency of the consolidated entity is also the Canadian dollar.

One Global investment is Indogold Inc., an Indonesian gold producer. The gold produced is priced and sold in US dollars. Approximately 50% of its costs for supplies and labour are denominated in the Indonesian rupiah, 40% of its costs for supplies and labour are denominated in US dollars, and the remaining 10% are depreciation charges related to monies spent to acquire and develop the property.

Global also has oil drilling and producing operations in Canada. Global acquired its drilling equipment in Germany. To finance the purchase, Global created a structured entity (SE) in Germany. Global lent the SE the euros it required to finance the purchase of the equipment. The SE has no direct employees or management, and all the directors are Global employees.

Global has an investment in Northern Patriots, a US company that sells products imported from Global. The products are sold in the northeastern United States at prices determined by local competition. Northern Patriots’s costs are also determined locally, except for the products it sells, which are costed in Canadian dollars. Global financed the subsidiary with a small equity investment and a substantial long-term Canadian dollar loan. Northern Patriots pays all excess funds to Global via intercompany dividends.

Global also invested a substantial sum of Japanese yen in East Asia Holdings Corporation. East Asia in turn invested the monies into Japan Manufacturing, a company that operates in Japan. Japan Manufacturing acquires all of its materials and labour from sources in Japan and sells all of its manufactured goods in Japan. The management of Japan Manufacturing is responsible for obtaining any future financing and makes all dividend decisions. East Asia Holdings acts only as a holding company and remits all dividends to Global.

Required
What are the functional currencies of the five entities described above? Discuss the factors that you considered in making your decision and specify any additional information that you would like to have.