Why Would an MNE Assign Vanguard Status to a Subsidiary

question 2

Multiple Choice

Why would an MNE assign vanguard status to a subsidiary?

• A) To ensure head office practices are implemented
• B) To create a more distant relationship between the parent and subsidiary
• C) To encourage reverse diffusion
• D) To discourage reverse diffusion

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Definitions:

Tobacco

A plant and its product, primarily known for being smoked or chewed, containing the stimulant nicotine and associated with health risks such as cancer and heart disease.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products from the baby's blood.

Birth Defects

Conditions that are present from birth, causing abnormalities in body structure, function, or metabolism.

Heroin

An opioid drug derived from morphine, often used illegally for its euphoric effects.