Which of the following is a way in which a wholly owned subsidiary may be established in a foreign market?
A) Through a turnkey operation with a local partner
B) Through franchising
C) By acquiring an established firm in the host nation
D) By exporting
E) Through a licensing agreement

Question

Quizplus · Accepted Answer

The establishment of a wholly owned subsidiary in a foreign market can be done through acquiring an already established firm in the host nation. This allows the parent company to have complete control over the operations of the subsidiary, including its strategic direction, management, and decision-making processes. A turnkey operation with a local partner involves the transfer of technology or expertise to the local partner, while franchising and licensing agreements involve granting rights to others to operate under the parent company's brand name or use its intellectual property. Exporting involves selling products or services to foreign markets without a physical presence in the target market.

Which of the Following Is a Way in Which a Wholly