An Australian company has a subsidiary in Japan which operates through its local management which make...

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An Australian company has a subsidiary in Japan which operates through its local management which make the day to day decision making of the operation. The operation purchases parts from various Australian manufacturers for assembly in Japan by local labour. The finished product is exported to a number of countries but Japan is still the major market. Consequently, the sales price is dominated by competition within Japan and follows the local regulations in Japan. Required I explain the factors that will determine the functional currency ? Is it Japanese Yen or Australian dollars? Explain An Australian company has a subsidiary in Japan which operates through its local management which make the day to day decision making of the operation. The operation purchases parts from various Australian manufacturers for assembly in Japan by local labour. The finished product is exported to a number of countries but Japan is still the major market. Consequently, the sales price is dominated by competition within Japan and follows the local regulations in Japan. Required I explain the factors that will determine the functional currency ? Is it Japanese Yen or Australian dollars? Explain An Australian company has a subsidiary in Japan which operates through its local management which make the day to day decision making of the operation. The operation purchases parts from various Australian manufacturers for assembly in Japan by local labour. The finished product is exported to a number of countries but Japan is still the major market. Consequently, the sales price is dominated by competition within Japan and follows the local regulations in Japan. Required I explain the factors that will determine the functional currency ? Is it Japanese Yen or Australian dollars? Explain

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Introduction Determining the functional currency for a subsidiary involves considering various factors that influence its economic environment and ope... View the full answer