A clear advantage of wholly owned subsidiary as a preferred entry mode,particularly when a firm's competitive advantage is based on technological competence,will often be because it:
A)reduces the risk of losing control over that competence.
B)benefits from the host country's competitive conditions.
C)increases control of the development costs and risks of working in a foreign market.
D)maintains control over the capital necessary to get the overseas operation going.

Question

Quizplus · Accepted Answer

A wholly owned subsidiary allows the firm to maintain full control over its technological competence, reducing the risk of losing control over it to a partner or competitor.

A Clear Advantage of Wholly Owned Subsidiary as a Preferred