A Major Disadvantage of Operating a Wholly Owned Subsidiary Is

question 28

Multiple Choice

A major disadvantage of operating a wholly owned subsidiary is that

• A)a loss of control over technology is likely to occur.
• B)a wholly owned subsidiary offers too much flexibility over operations.
• C)high costs and risk are associated with this type of operation.
• D)overseas consumers are often resentful of foreigners.
• E)host countries can impose higher tariffs on the firm.

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Definitions:

Abbreviation

A compacted form of a word or phrase.

Sexually Transmitted Infections

Infections that are primarily spread through sexual contact, including diseases like HIV, gonorrhea, and chlamydia.

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Hormone Therapy

The use of hormones in medical treatment, especially the replacement of naturally occurring hormones with synthetic ones.