An advantage of a wholly owned subsidiary is that it may be required if a firm is trying to realize location and experience curve economies.

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Wholly owned subsidiaries allow firms to have complete control and ownership of their operations in a foreign country, which can help them achieve location and experience curve economies. This is because the subsidiary can be specifically tailored to take advantage of local resources, infrastructure, and talent, as well as benefit from the parent company's knowledge and expertise. As such, a wholly owned subsidiary can be a strategic advantage for firms seeking to optimize their global operations.

An Advantage of a Wholly Owned Subsidiary Is That It