Which of the following is an advantage of a wholly owned subsidiary as a global entry strategy?
A) The company may gain access to new knowledge or technologies.
B) The partner will share the costs of operating overseas.
C) This method has the highest transportation costs for finished goods.
D) This method minimizes the risks of overseas operations.
E) This method gives a company tight control over operations in other countries.

Question

Quizplus · Accepted Answer

Establishing a wholly owned subsidiary, which is an independent company owned by the parent corporation, gives the parent tight control over operations in other countries, which is necessary if the company chooses to pursue a global strategy.

Which of the Following Is an Advantage of a Wholly