In order to enter the Spanish market, a Moroccan firm establishes a store that is entirely owned by the Moroccan firm. This is an example of a(n)________.

Question

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A wholly-owned subsidiary is a type of entry mode in which a company establishes a new entity in a foreign market that is fully owned and controlled by the parent company. In the given scenario, the Moroccan firm establishes a store that is completely owned by it, thus making it a wholly-owned subsidiary. The other options, such as strategic alliance, exporting agreement, and joint venture involve some level of partnership or sharing of ownership/control with a local company, which is not the case here.

In Order to Enter the Spanish Market, a Moroccan Firm