Which entry mode gives a multinational the tightest control over foreign operations?
A)Exporting from the horne country and letting a foreign agent organize local marketing
B)Licensing
C)Franchising
D)Entering into a joint venture with a foreign company to set up overseas operations
E)Setting up a wholly owned subsidiary

Question

Quizplus · Accepted Answer

Setting up a wholly owned subsidiary gives a multinational the tightest control over foreign operations as it allows the parent company to have full ownership and control over the operations in the foreign market. The parent company also has complete decision-making power and full access to profits. This mode of entry requires a high level of investment but provides the highest level of control.

Which Entry Mode Gives a Multinational the Tightest Control Over