What is the primary advantage of a subsidiary?
A)The company can then franchise.
B)The company maintains control over technology.
C)The company gains from tax advantages.
D)The company maintains host country advantages.

Question

Quizplus · Accepted Answer

The primary advantage of a subsidiary is that the parent company maintains control over technology, ensuring that it is not transferred to the host country. This enables the parent company to protect its intellectual property and maintain a competitive advantage. While other advantages such as tax advantages and host country advantages may also be realized, they are not the primary advantage of a subsidiary. Franchising is also not directly related to subsidiaries.

What Is the Primary Advantage of a Subsidiary