A Fully Owned Foreign Subsidiary Is a Form of MNC

question 43

Multiple Choice

A fully owned foreign subsidiary is a form of MNC (multinational corporation) in which

• A) a local entrepreneur buys the firm in its own foreign country.
• B) the MNC owns and operates the firm by itself.
• C) the foreign government gives its full cooperation.
• D) none of these options are true.

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Definitions:

Equity Theory

A theory that proposes that individuals are motivated by a desire for fairness and equity in their relationships and will take actions to maintain or restore equity.

Apathetic

Characterized by a lack of interest, enthusiasm, or concern for things that others find moving or exciting.

Antarctic

The Earth's southernmost continent, surrounding the South Pole, known for its extreme cold temperatures and ice-covered landscape.

Social Exchange Theory

A sociological and psychological theory that explains social change and stability as a process of negotiated exchanges between parties.