The primary reason for the use of wholly owned subsidiaries is a multinational company's (MNC's)desire for total control and the belief that managerial efficiency will be better without outside partners.

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The primary reason for the use of wholly owned subsidiaries is a desire by a multinational company (MNC) for total control and the belief that managerial efficiency will be better without outside partners. Because of sole ownership, it has been found that profits can be higher with this venture and that there are clearer communications and shared visions.

The Primary Reason for the Use of Wholly Owned Subsidiaries