Establishing a wholly owned subsidiary in a foreign country can be done:
A) through a turnkey operation or through a licensing agreement
B) through a joint venture of through acquiring an established firm to promote its products
C) through setting up a new operation in a foreign country or through acquiring an established firm to promote its products
D) through licensing agreements or through setting up a new operation in the foreign country
E) through master franchising agreements

Question

Quizplus · Accepted Answer

Establishing a wholly owned subsidiary in a foreign country can be done through two ways- setting up a new operation in a foreign country or acquiring an established firm to promote its products. A turnkey operation, licensing agreements, joint ventures, and master franchising agreements do not necessarily result in a wholly owned subsidiary. Acquiring an established firm or setting up a new operation are the most common and effective ways to establish a wholly owned subsidiary in a foreign country. Between the two, acquiring an established firm is generally quicker, though potentially more expensive, than setting up a new operation.

Establishing a Wholly Owned Subsidiary in a Foreign Country Can