Which of the Following Is an Advantage of Wholly Owned

question 99

Multiple Choice

Which of the following is an advantage of wholly owned subsidiaries as a mode of entry into foreign markets?

• A) A foreign firm is relieved of many of the costs and risks associated with opening a foreign market on its own.
• B) The risk of losing control over a firm's technological competence is reduced.
• C) A foreign firm is insulated completely from the threat posed by high transport costs.
• D) It is the most politically acceptable mode of entry into foreign markets.
• E) It helps create competition which in turn increases the quality of production.

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