A U.S. manufacturer of imitation Navajo rugs is to initiate manufacturing operations offshore for the first time, in this case in the United Kingdom. In financial planning, discuss the company’s principles compromises in parent income and subsidiary profits / losses relating to the various intra-firm cash flows between sub and parent (material transfer, license fees, intra-firm debt, etc. common) . The focus is the case, to determine the preferred combination … Read more »

A U.S. manufacturer of imitation Navajo rugs is to initiate manufacturing operations offshore for the first time, in this case in the United Kingdom. In financial planning, discuss the company’s principles compromises in parent income and subsidiary profits / losses relating to the various intra-firm cash flows between sub and parent (material transfer, license fees, intra-firm debt, etc. common) . The focus of the case is to be determined to achieve the preferred combination and form of rates and charges between parent and subsidiary company’s financial goals.
This is a Thunderbird Case Study.
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from
Michael Moffett
James L. Mills,
Timothy J. Magnusson
Source: Thunderbird School of Global Management
10 pages.
Release Date: 09 April 1997. Prod #: TB0211-PDF-ENG
Hozho (A) HBR case solution