The role of a multinational's foreign subsidiary is to serve the needs of the national or regional market where it is located.

Question

Quizplus · Accepted Answer

The foreign subsidiary of a multinational company is established to cater to the specific needs of the local market where it is located. It operates as a separate entity from the parent company and adapts its products, services, marketing strategies, and operations to fit the local market conditions and cultural factors. Therefore, the primary role of a foreign subsidiary is to serve the needs of the local market rather than the parent company's global objectives or strategies.

The Role of a Multinational's Foreign Subsidiary Is to Serve