Establishing a wholly owned foreign subsidiary is much more expensive than the other global operations because it requires a higher level of foreign investment and presents managers with many more threats.

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Operating alone,without any direct involvement from foreign companies,an organization receives all of the rewards and bears all of the risks associated with operating abroad.Establishing a wholly owned foreign subsidiary is much more expensive than the others because it requires a higher level of foreign investment and presents managers with many more threats.

Establishing a Wholly Owned Foreign Subsidiary Is Much More Expensive