Setting up a(n)________ involves directly investing in a foreign country.
A) licensee
B) subsidiary
C) franchisee
D) international division
E) None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Opening a subsidiary involves establishing a legal entity in a foreign country, which may require direct investment, such as purchasing property or equipment, hiring staff, and obtaining licenses and permits. This option is typically preferred by large or established businesses that want total control over their operations in the foreign country.

Setting Up A(n)________ Involves Directly Investing in a Foreign Country