The Nissan factory in Smyrna, Tennessee, is a wholly owned subsidiary with the firm owning 100 percent of the stock. It produces Nissan pickup trucks. Since Nissan is a Japanese company, this plant would be an example of a(n)

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In direct ownership, companies prefer to enter or grow in markets either through establishment of a wholly owned subsidiary or through acquisition. In either case, the firm owns 100 percent of the stock.

The Nissan Factory in Smyrna, Tennessee, Is a Wholly Owned