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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