A fully owned subsidiary is most likely a high-risk entry strategy because of ________.
A) expropriation threats
B) unreliable distributors
C) infrastructure weaknesses
D) quality control issues

Question

Quizplus · Accepted Answer

A fully owned subsidiary involves a significant investment by the parent company and often requires obtaining rights to land, resources, and other assets in the host country. This can lead to expropriation threats from the host country's government, making it a high-risk entry strategy.

A Fully Owned Subsidiary Is Most Likely a High-Risk Entry