Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries?
A)Such firms seek knowledge of the local markets,culture,and political environment
B)Technological know-how is not a source of competitive advantage to such firms
C)It allows firms to use the profits generated in one market to improve its competitive position in another market
D)It is a more politically accepted mode of entry to foreign markets

Question

Quizplus · Accepted Answer

Firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries because it gives the firm the ability to use the profits generated in one market to improve its competitive position in another market.

Why Do Firms Pursuing Global Standardization or Transnational Strategies Tend