Z-Technologies, a manufacturing company in Berylia, is a global organization. The company owns a manufacturing unit in Erbia and another one in Rhodia, where there is high demand for its products. Though it is an expensive and risky proposition, the parent company has full control of the manufacturing units in the foreign countries. Which of the following market entry strategies has been used by Z-Technologies?
A) Licensing and franchising
B) Joint venture and alliances
C) Wholly-owned subsidiaries
D) Exporting

Question

Quizplus · Accepted Answer

Z-Technologies has chosen to establish wholly-owned subsidiaries in Erbia and Rhodia, which means they have full control over the manufacturing units in these foreign countries. This is a high-risk and expensive proposition but provides greater control over operations and profits. Licensing and franchising involve giving some control to a third party, joint ventures involve sharing control with local partners, and exporting involves selling products to foreign markets without establishing a physical presence.

Z-Technologies, a Manufacturing Company in Berylia, Is a Global Organization