When you open a document in Illustrator, you get a requestor asking what color space (RBG or CMYK) you want to work in. So Illustrator converts the document to the preferred color space. If your work will be for the web or for viewing on screen, for example, a Power Point presentation, select RGB. If you intend to send your work to a commercial printing company to print in CMYK then select CMYK.
Gary
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