Carlton Co. and Palmer, Inc., are U.S.-based MNCs with subsidiaries in Canada that distribute medical supplies (produced in the United States) to customers throughout Canada, Both subsidiaries purchase the products at cost and sell the products at 90 percent markup. The other operating costs of the subsidiaries are very low. Carlton Co. has a research and development center in the United States that focuses on improving its medical technology. Palmer, Inc., has a similar center based in Canada. Each firm subsidizes its respective research and development center on an annual basis. Which firm is subject to a higher degree of economic exposure? Explain