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32. identify the advantages of establishing a wholly owned subsidiary a. constitutes the cheapest method of...

32. identify the advantages of establishing a wholly owned subsidiary
a. constitutes the cheapest method of serving a foreign market from the point of view of capital investment
b. political considerations make it the most viable mode of entry
c. may be necessary if the company is trying to achieve economies of location and experience curves
d. is particularly useful when the IDF is limited by the regulations of the government of the foreign country

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Answer #1

identify the advantages of establishing a wholly owned subsidiary

Answer : c. may be necessary if the company is trying to achieve economies of location and experience curves

In a wholly owned subsidiary, the firm owns 100 percent of the stock.

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