What Is One Way a Wholly Owned Subsidiary Can Be

question 78

Multiple Choice

What is one way a wholly owned subsidiary can be established in a foreign market?

• A) through a turnkey operation with a local partner
• B) through franchising
• C) by acquiring an established firm in the host nation
• D) by exporting
• E) through a licensing agreement

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Definitions:

Perverse Incentives

Incentives that have unintended and undesirable results, contrary to the interests of the incentive makers.

Aid to Families

Financial or material support provided to families, often by the government, to help them meet their basic needs or improve their living conditions.

Adverse Selection

A situation in which one party in a transaction has more information than the other, typically leading to an inefficient market outcome.

Health Care Costs

The expenses related to maintaining the health of individuals, including medical services, medications, and treatments.