Which of the Following Is True of Wholly Owned Subsidiaries

question 66

Multiple Choice

Which of the following is true of wholly owned subsidiaries?

• A) It is the least expensive method of serving a foreign market from a capital investment standpoint.
• B) It the most feasible entry mode due to the political considerations.
• C) It is 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:

Nitrate

A polyatomic ion with the chemical formula NO3-, commonly found in fertilizers and an essential nutrient for plant growth.

Plants

Multicellular organisms that typically produce their own food through photosynthesis and have cell walls made of cellulose.

Uptake

The absorption or intake of substances by the cells or biological membranes.

Nutrients

Essential substances that organisms need to acquire from their environment to maintain health, growth, and reproduction.