One section of Jose's company's business plan involves setting up a foreign subsidiary.This arrangement involves ________.
A)making products domestically and selling them abroad
B)Jose's company giving the foreign subsidiary the right to use its brand name
C)directly investing in a foreign country
D)minimum global investment

Question

Quizplus · Accepted Answer

Setting up a foreign subsidiary involves directly investing in a foreign country and establishing a separate legal entity in that country. This can provide the company with certain benefits such as reduced tax liabilities and improved access to local markets. Options A and B refer to international expansion strategies that do not necessarily involve setting up a foreign subsidiary. Option D is not a relevant concept in this context.

One Section of Jose's Company's Business Plan Involves Setting Up