Z-Technologies,a manufacturing company in Berylia,is a global organization.The company owns a manufacturing unit in Erbia and another one in Rhodia,where the demand for its products is more.Though it is an expensive and risky proposition,the parent company has full control of the manufacturing units in the foreign countries.Which of the following market entry strategies has been used by Z-Technologies?
A) Licensing and franchising
B) Joint venture and alliances
C) Wholly-owned subsidiaries
D) Exporting

Question

Quizplus · Accepted Answer

Z-Technologies has opted for wholly-owned subsidiaries strategy as it has full control of the manufacturing units in the foreign countries. This strategy involves a high level of investment and risk but the parent company has complete ownership and control over the subsidiaries. The other options such as licensing and franchising, joint venture and alliances, and exporting do not involve full control over manufacturing units in foreign countries.

Z-Technologies,a Manufacturing Company in Berylia,is a Global Organization