Adriana,a CEO,is interested in expanding her clothing business globally.She loves the excitement and challenge of forming something new that is totally owned and controlled by her organization,knowing that the risky investment will possibly yield a large return.Adriana's desire to form a firm that is totally owned and controlled by her company is an example of a wholly owned subsidiary.

Question

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A wholly owned subsidiary is a foreign subsidiary that is totally owned and controlled by an organization.Figure 4.1 shows that a wholly owned subsidiary is the global expansion strategy with the highest risk and investment.

Adriana,a CEO,is Interested in Expanding Her Clothing Business Globally