Which entry mode gives a multinational the tightest control over foreign operations?
A) Exporting from the home country and letting a foreign agent organize local marketing
B) Licensing
C) Franchising
D) Entering into a joint venture with a foreign company to set up overseas operations
E) Setting up a wholly owned subsidiary

Question

Quizplus · Accepted Answer

Setting up a wholly owned subsidiary provides the multinational with the highest level of control over foreign operations as they have complete ownership and decision-making power. The other entry modes involve sharing ownership or licensing rights with local partners, which limits the multinational's control over the operation.

Which Entry Mode Gives a Multinational the Tightest Control Over