The Docket Company of Asheville, NC, USA, is considering establishing an affiliate operation in the city of Wellington, on the south island of New Zealand. It is undecided whether to establish the affiliate as a branch operation or a wholly owned subsidiary. New Zealand taxes the income of both resident corporations and branch operations at a flat rate of 30 percent. It also withholds taxes at a rate of 15 percent on dividends paid by resident corporations to recipients in the United States. The United States has an income tax rate of 35 percent on income earned worldwide, but gives a tax credit for taxes paid to another country. Based on this information, is a branch or subsidiary the recommended form for the affiliate?