Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________.
A) making products domestically and selling them abroad
B) Jose's company giving the foreign subsidiary the right to use its brand name
C) directly investing in a foreign country
D) minimum global investment

Question

Quizplus · Accepted Answer

Setting up a foreign subsidiary involves directly investing in a foreign country by creating a separate legal entity that is controlled by the parent company. This allows the parent company to have a physical presence and more control over operations in the foreign country. Options A and B refer to different types of international business models, and option D is not relevant to this scenario.

Part of Jose's Company's Business Plan Involves Setting Up a Foreign