The Establishment of a New Subsidiary Is Commonly Considered by MNCs

question 8

True/False

The establishment of a new subsidiary is commonly considered by MNCs because the cost is less expensive than acquiring a foreign subsidiary of the same size.

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Definitions:

Bargaining Power

The relative capacity of parties in a negotiation to exert influence on each other, often influencing the terms and conditions of agreements.

Single Buyer

A market situation where there is only one buyer, or consumer, for a particular product or service, often leading to monopsony power.

Single Seller

A market structure where there is only one provider of a particular product or service, leading to monopoly.

Federal Judicial Power

The authority granted to federal courts and judges to rule on legal disputes, including interpreting the Constitution and laws of the United States.