References and Data Sharing Features for Embedded Components
Effects of Embedding a Component on Direct References
Embed and extract operations on components with direct references, such as data sharing features or relations, behave in the following ways:
• When the target and source model are embedded in the same embed operation, the references are routed to the embedded model.
When both the target and source models are extracted in the same operation, the references are routed to the new extracted model.
• When the source model is embedded without the target model; the target model data sharing feature continues to reference the original regular source model and not the new, embedded one.
When the source model is extracted, the references are routed to the new extracted source model.
Copy Geometry
Data sharing features can be created in an embedded model or in an assembly that includes embedded components. These data sharing features can reference embedded models. When the data sharing feature is in the context of the assembly, references are kept to the same reference model as components in the assembly are embedded or extracted.
When you create external copy geometry features, you can only reference regular models. You can, however, select references that belong to an embedded model when the reference model is an assembly that includes the required embedded component.
Merge and Inheritance
When you select a reference model for an external merge or inheritance feature you can reference embedded parts that are in session. Click 
In Session in the Open dialog box to display in session embedded parts. and click Open.
In Session in the Open dialog box to display in session embedded parts. and click Open. | Make sure the  Tools > check box is selected. |
Placement is of the embedded part itself, not the owner assembly. The referenced embedded part is indicated with the full name, including the assembly name, in the collector.
Shrinkwrap
Shrinkwrap treats surfaces of embedded components the same as regular components. An external Shrinkwrap cannot reference an embedded part or assembly directly, it can only reference it through the regular, owner assembly.