What Is the Difference Between a Foreign Subsidiary of an MNC

question 4

Multiple Choice

What is the difference between a foreign subsidiary of an MNC and a foreign joint venture?

• A)A foreign subsidiary is a separate organization in a foreign country in which the MNC has a partial interest,and a foreign joint venture is an organization in a foreign country in which the MNC is a partner.
• B)A foreign subsidiary is a separate organization in a foreign country that is wholly owned by the MNC,while a foreign joint venture is an organization in a foreign country in which the MNC owns less than 100 percent.
• C)A foreign subsidiary of an MNC and a foreign joint venture are essentially the same kinds of organization and the MNC owns each kind of organization completely.
• D)A foreign subsidiary is an office of the MNC but is not a separate organization,and a foreign joint venture is a separate foreign organization owned by the MNC.

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Definitions:

Experimental Methods

A research methodology that involves manipulating one variable to determine if it causes a change in another variable, often used to establish cause-and-effect relationships.

Universal Principles

Fundamental norms, rules, or values that are widely accepted and applied across different cultures and contexts.

A Priori Hypothesis

A hypothesis formulated based on theoretical considerations or previous evidence before conducting a new study.

Paradigm

A theoretical framework or model that shapes how a discipline understands concepts, methodologies, and the interpretation of data.