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:

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