A fully owned foreign subsidiary is a form of MNC in which:

Question

Quizplus · Accepted Answer

A fully owned foreign subsidiary is a type of multinational corporation in which the MNC owns and operates the firm by itself, without any local domestic partner. Therefore, option B correctly defines a fully owned foreign subsidiary. Option A is incorrect because it refers to a local entrepreneur buying the firm, which is not the case in this scenario. Option C is irrelevant as it talks about foreign government cooperation, which is not a defining factor of a fully owned foreign subsidiary. Option D is also incorrect as it mentions the involvement of a local domestic partner, which is not the case in this type of MNC.

A Fully Owned Foreign Subsidiary Is a Form of MNC