Discuss which country is the functional currency of the foreign entity.

Discuss which country is the functional currency of the foreign entity.A New Zealand operation is a wholly-owned subsidiary of an Australian company. the parent regards the operation as a long-term investment and all financial and operational decisions are made by New Zealand management. The New Zealand operation purchases parts from various non-related Australian manufacturers for assembly in New Zealand. The finished product is exported to a number of countries with Australia as the major market. Consequently, sales prices are determined by competition within Australia.

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