What is the major disadvantage of a subsidiary?
A)The need to commit funds and technology within a foreign country.
B)The need for an export license for the subsidiary and the parent company.
C)The parent company's need for contract manufacturers.
D)The need for constant oversight of the subsidiary.

Question

Quizplus · Accepted Answer

Establishing a subsidiary requires significant investment of funds and technology in a foreign country, which can be a major disadvantage due to the risks and costs involved.

What Is the Major Disadvantage of a Subsidiary