he "pure" or exclusive type of holding company or the "mixed" type of holding company, the latter owning a number of subsidiaries which may in turn be intermediate holding companies and/or operating companies. There are advantages to carrying such interests in separately incorporated and controlled companies, offering decentralization of management in separate boards of directors and officers, bypassing any undue taxation on "foreign" corporations, or those domestic to other states, by carrying local properties in subsidiaries domestic to the state of location. The United States generally defers taxation of the foreign-sourced earnings of a foreign subsidiary until the income is recognized by the parent company. For foreign operations that are established in low-taxed foreign countries, the use of a foreign subsidiary structure may serve to defer U.S. taxes, desirable because the deferred U.S. tax could then be used for expansion of the business or other investments (Valentine 103).
Many exporters begin with an independent distributor and then find that they want more control. This frequently causes companies to shift from an independent dis
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