Jupiter Systems is a high-tech firm looking to set up operations in a foreign country.The firm's core competency is in technological know-how.Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology?
A)wholly owned subsidiary
B)joint venture
C)franchising
D)licensing
E)turnkey project

Question

Quizplus · Accepted Answer

A wholly owned subsidiary would give Jupiter Systems complete control over its operations and technology in the foreign country, as the firm would own 100% of the subsidiary. This would allow the firm to maintain its core competency and ensure that its technology remains protected. Joint ventures would involve sharing ownership and control with another company, which could lead to a loss of control over technology. Franchising and licensing do not provide full control over operations, and turnkey projects involve handing over the completed project to a third party, which may not be ideal for technology know-how protection.

Jupiter Systems Is a High-Tech Firm Looking to Set Up