When a Wholly Owned Subsidiary Is Established in a Foreign

question 1

True/False

When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control over all phases of the operation in the foreign country.

---

Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Demand

The desire and willingness of consumers to purchase goods or services at a given price level.

Supply

The total amount of a product or service that is available to consumers at a given price point and time.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, techniques, and systems.