Identify the Advantage of Establishing Wholly Owned Subsidiaries

question 65

Multiple Choice

Identify the advantage of establishing wholly owned subsidiaries.

• A)It is the least expensive method of serving a foreign market from a capital investment standpoint.
• B)Political considerations make it the most feasible entry mode.
• C)It may be required if a firm is trying to realize location and experience curve economies.
• D)It is particularly useful where FDI is limited by host-government regulations.

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Definitions:

Passive Voice

A sentence construction where the subject of the sentence is acted upon rather than performing the action.

Active Voice

A grammatical voice where the subject of the sentence performs the action expressed by the verb, making the writing more direct and clear.

Voir Dire

A proceeding in which attorneys for the plaintiff and the defendant ask prospective jurors questions to determine whether any juror is biased or has any connection with a party to the action or with a prospective witness.

Laypeople

Individuals who are not professionals or experts in a specific field, particularly in law, medicine, or religious clergy.