One section of Shana's company's business plan involves setting up a foreign subsidiary.This arrangement involves ________.
A) making products domestically and selling them abroad
B) Shana'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, typically by establishing a new company or acquiring an existing one, and having control over its operations. Options A and B refer to exporting and licensing respectively, which are different modes of international business. Option D is not relevant to the concept of foreign subsidiary.

One Section of Shana's Company's Business Plan Involves Setting Up