One of the Principal Risks with Wholly Owned Subsidiaries Is

question 33

Multiple Choice

One of the principal risks with wholly owned subsidiaries is:

• A)that they bring together the complementary skills of alliances partners.
• B)to give control of a firm's technology to its partner.
• C)a firm must bear the full capital costs and risks of setting up overseas operations.
• D)that they allow firms to share fixed costs.

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Definitions:

Social Psychologist

A professional who studies how social influences affect individual behavior and how people interact within groups.

Milgram's Research

a series of psychological experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Cohesive Group

A social group that is united, working together well, and has strong bonds among its members, leading to higher group morale.