Which of the following is the primary advantage of a wholly owned subsidiary as a foreign market entry strategy?
A) Provides a firm total control over its operations
B) Easier to raise capital to implement than other foreign market entry strategies
C) Gaining an appreciation of local customs and market preferences
D) Low transportation costs
E) The ability to give employees foreign market experience

Question

Quizplus · Accepted Answer

The primary advantage of a wholly owned subsidiary as a foreign market entry strategy is providing a firm total control over its operations. This means that the parent company has full control over the subsidiary's decision-making process, allowing them to implement their own strategies and policies. This also ensures that the parent company's vision and values are maintained and followed in the foreign market.

Which of the Following Is the Primary Advantage of a Wholly