If a Swiss chocolate firm purchases an American ice cream manufacturer, the American ice cream manufacturer becomes a
A) global franchise.
B) global joint venture.
C) foreign subsidiary.
D) contract manufacturer.

Question

Quizplus · Accepted Answer

A foreign subsidiary is a company that is owned and operated in a foreign nation by another company called the parent company. The Swiss firm Nestlé's purchase of U.S.-based Dreyer's Ice Cream is an example a Swiss-owned foreign subsidiary operating in the United States.

If a Swiss Chocolate Firm Purchases an American Ice Cream