The Greatest Disadvantage of Operating a Wholly Owned Subsidiary Is

question 30

Multiple Choice

The greatest disadvantage of operating a wholly owned subsidiary is

• A)a loss of technology is likely to occur.
• B)quality levels are difficult to monitor overseas.
• 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:

Prevailing Wage Rates

Standardized wage levels determined by regulatory bodies for certain job categories within specific regions, often used to ensure fair compensation.

Prevailing Wage Rates

Prevailing wage rates refer to the standard set of wages determined by regulatory bodies that employers must pay their workers for specific types of work, often used in public sector contracts.

Relative Work

The concept of comparing various tasks or jobs in terms of their contributions to organizational goals, complexity, or requirements.

Equal Value

The principle of granting equal compensation and consideration for jobs or tasks that are different but deemed to be of equivalent worth in terms of skill, effort, responsibility, and working conditions.