All other conditions being equal, if a firm intends to have the strongest control over sensitive proprietary technology, which of the following entry modes is the best option?
A) Joint venture
B) Licensing
C) Wholly owned subsidiary
D) Turnkey project

Question

Quizplus · Accepted Answer

When a firm intends to have the strongest control over sensitive proprietary technology, the best option is to establish a wholly owned subsidiary. This is because the firm will have complete ownership and control over the subsidiary, including its technology and intellectual property. Other entry modes such as joint venture and licensing can provide access to technology, but they do not ensure complete control. Turnkey projects may involve transfer of technology, but they do not provide long-term ownership and control over the technology.

All Other Conditions Being Equal, If a Firm Intends to Have