Founding a wholly owned subsidiary in a foreign market to take advantage of all essential value chain activities requires a strategy that
A)establishes a wholly owned subsidiary.
B)acquires a foreign company.
C)supports direct control over all aspects of operating in a foreign market.
D)establishes a start-up operation.
E)creates multiple country value chains to attain and sustain a competitive advantage in all markets served.

Question

Quizplus · Accepted Answer

To take advantage of all essential value chain activities in a foreign market, it is necessary to establish a wholly owned subsidiary so that the company has direct control over all aspects of operating in the foreign market. Acquiring a foreign company or establishing a start-up operation may not provide the same level of control over the value chain activities. Creating multiple country value chains may be useful in attaining and sustaining a competitive advantage in all markets served, but it is not necessary to take advantage of all essential value chain activities in a single foreign market.

Founding a Wholly Owned Subsidiary in a Foreign Market to Take