A firm that establishes a _____ must bear the full costs and risks of entering a foreign market.

Question

Quizplus · Accepted Answer

A wholly owned subsidiary is a type of foreign market entry in which a company sets up a new business or acquires an existing one in a foreign country, fully owning and controlling its operations. This means that the company bears all the costs and risks of entering the foreign market, rather than sharing them with partners as in joint ventures or licensing agreements, or following a pre-existing business model as in a franchise.

A Firm That Establishes a _____ Must Bear the Full