Which of the following is an assumption behind a wholly-owned subsidiary?
A)The company can afford the costs involved in setting up a wholly-owned subsidiary.
B)The company is willing to commit to the market in the long term.
C)The local government allows foreign companies to set up wholly-owned subsidiaries.
D)All of the above are assumptions behind a wholly-owned subsidiary.

Question

Quizplus · Accepted Answer

Companies can avoid some of the disadvantages posed by partnering with other firms by setting up wholly-owned subsidiaries in the target markets. The assumptions behind a wholly-owned subsidiary are that: the company can afford the costs involved in setting up a wholly-owned subsidiary (it is one of the most expensive ways of entering a market), the company is willing to commit to the market in the long term, and the local government allows foreign companies to set up wholly-owned subsidiaries on its territory (many governments require at least some local ownership).

Which of the Following Is an Assumption Behind a Wholly-Owned