Jupiter Systems is a high-tech firm looking to set up operations in a foreign country to profit from its technological know-how which is its core competency.Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology?
A) Wholly owned subsidiary
B) Joint venture
C) Franchising
D) Licensing
E) Turnkey project

Question

Quizplus · Accepted Answer

With a wholly owned subsidiary, Jupiter Systems will have complete control over its operations and technology. It can ensure that its technological know-how is not leaked or duplicated by any other party. This mode of entry also allows the firm to make all the strategic decisions without having to share control with any other party.

Jupiter Systems Is a High-Tech Firm Looking to Set Up