Protection of technology,the ability to engage in global strategic coordination,and the ability to realize location and experience curve economies are distinct advantages of:
A)franchising.
B)wholly owned subsidiaries.
C)joint ventures.
D)licensing.

Question

Quizplus · Accepted Answer

When a firm's competitive advantage is based on technological competence,a wholly owned subsidiary will often be the preferred entry mode because it reduces the risk of losing control over that competence.A wholly owned subsidiary gives a firm tight control over operations in different countries.This is necessary for engaging in global strategic coordination.Also,a wholly owned subsidiary may be required if a firm is trying to realize location and experience curve economies.

Protection of Technology,the Ability to Engage in Global Strategic Coordination,and