Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?
A)The company is not likely to face overcapacity issues.
B)The company limits foreign-exchange rate fluctuations.
C)The company avoids communication misunderstandings.
D)The company can sub-optimize results in one country in order to optimize results globally.

Question

Quizplus · Accepted Answer

Owning 100 percent of foreign operations allows a company to have full control over its international strategy, enabling it to prioritize global optimization over local performance, which might involve sub-optimizing results in one country for the benefit of the overall global strategy.

Why Can a Company More Easily Pursue a Global Strategy