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What is the correct method of dropping files from Illustrator into Indesign

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I've been taught to 'place' any file/image/logo into InDesign. However, when I 'place' a logo from illustrator into indesign it appears pixelated. The same logo copied and pasted from illustrator into Indesign looks fine !  (But I thought this method was wrong and that one could only copy and paste when it is Illustrator into photoshop!)

 

Would someone be able to explain where I am going wrong and which the right method is?

 

Many thanks


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