Solved

What Is the Difference Between a Foreign Subsidiary of an MNC

Question 32

Multiple Choice

What is the difference between a foreign subsidiary of an MNC and a foreign joint venture?

A) A foreign subsidiary is a separate organization in a foreign country in which the MNC has a partial interest,and a foreign joint venture is an organization in a foreign country in which the MNC is a partner.
B) A foreign subsidiary is a separate organization in a foreign country that is wholly owned by the MNC,while a foreign joint venture is an organization in a foreign country in which the MNC owns less than 100 percent.
C) A foreign subsidiary of an MNC and a foreign joint venture are essentially the same kinds of organization and the MNC owns each kind of organization completely.
D) A foreign subsidiary is an office of the MNC but is not a separate organization,and a foreign joint venture is a separate foreign organization owned by the MNC.

Correct Answer: