If a Swiss chocolate firm purchases an American ice cream manufacturer, the American ice cream manufacturer becomes a:

Question

Quizplus · Accepted Answer

The American ice cream manufacturer becomes a foreign subsidiary because it is being fully owned and controlled by a foreign company (the Swiss chocolate firm). A global franchise implies a license agreement between companies, a global joint venture implies a partnership between companies, and a contract manufacturer implies a third-party manufacturer hired by the Swiss chocolate firm. None of these fully represent the acquisition of an American ice cream manufacturer by a Swiss chocolate firm.

If a Swiss Chocolate Firm Purchases an American Ice Cream