Which of the following modes of international expansion gives an organization high potential return because the organization does not have to share its profits with a foreign organization,and it reduces the level of risk because the organization's managers have full control over all aspects of their foreign company's operations?

Question

Quizplus · Accepted Answer

When managers decide to establish a wholly owned foreign subsidiary, they invest in establishing production operations in a foreign country independent of any local direct involvement. It gives an organization high potential return because the organization does not have to share its profits with a foreign organization, and it reduces the level of risk because the organization's managers have full control over all aspects of their foreign subsidiary's operations.

Which of the Following Modes of International Expansion Gives an Organization