Suppose Boeing decided to build an assembly plant in Iceland and,in an effort to maintain maximum control,decided to operate the plant completely on its own.This is an approach to foreign market entry referred to as:
A) joint venture
B) turnkey operation
C) exporting
D) wholly owned subsidiary
E) greenfield venture

Question

Quizplus · Accepted Answer

Wholly owned subsidiary is the approach where a company establishes a new subsidiary in a foreign market and operates it completely on its own. This option provides the highest level of control but also requires the most investment and effort.

Suppose Boeing Decided to Build an Assembly Plant in Iceland