Honda has created a subsidiary in the United States for auto parts. This is an example of
A) foreign subsidiary.
B) affiliates.
C) joint venture.
D) both a and b.

Question

Quizplus · Accepted Answer

A foreign subsidiary is a company owned in a foreign country by another company, called the parent company. Affiliates can also refer to company relationships where the parent company owns less than a majority of the subsidiary. Since Honda, a Japanese company, has created a subsidiary in the United States for auto parts, it can be considered both a foreign subsidiary and an affiliate, depending on the ownership percentage and the nature of the control Honda exercises over it.

Honda Has Created a Subsidiary in the United States for Auto