Which of the Following Conditions Is Not Suitable for the Wholly

question 16

Multiple Choice

Which of the following conditions is not suitable for the wholly owned subsidiary mode of entry?

• A)Intellectual property rights in the host country are not well protected.
• B)The pace of technological advancement is fast.
• C)The number of firms in the industry is growing fast.
• D)The need for global integration is high.

---

Definitions:

Pure Monopoly

A market structure where a single seller controls the entire supply of a product or service, with no close substitutes available.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to some degree of market power in setting prices.

Economies of Scale

A proportionate saving in costs gained by an increased level of production, leading to lower costs per unit as volume increases.

Unit Cost

The expense a company experiences in manufacturing, warehousing, and distributing a single unit of a specific product or service.