_______________ is the preferred mode of foreign market entry for a high-tech firms that wants to (1)minimize the risk of losing control over its technological competence; and (2)maintain tight control over its operations.
A) Licensing
B) Franchising
C) Wholly owned subsidiary
D) Turnkey operation
E) Acquisition

Question

Quizplus · Accepted Answer

A wholly owned subsidiary allows the high-tech firm to maintain full control over its operations and technological competence, while also minimizing the risk of losing control to foreign partners or licensees. Licensing and franchising involve sharing intellectual property and operations with foreign partners or franchisees, while turnkey operations and acquisitions may result in a loss of control over certain aspects of the business.

_______________ Is the Preferred Mode of Foreign Market Entry for a High-Tech