Give meaning of wholly owned subsidiaries.

Solution

This entry mode of international business is preferred by the companies which want to exercise full control over their overseas operations. The parent company acquires full control over the foreign company by making 100 per cent investment in its equity capital. A wholly owned subsidiary in a foreign market can be established in either of the two ways :
(1) Setting up altogether a new firm to start operations in a foreign country also referred to as a green field venture, or.

(2) Acquiring an established firm in the foreign country nation and using that firm to manufacture and/or promote its products in the host nation.

Some More Questions From International Business - I Chapter

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International Business - I

Give meaning of wholly owned subsidiaries.

Some More Questions From International Business - I Chapter

Give meaning of International Business.

Give the types of mode of entry into International Business.

Give meaning of merchandise export and import.

Give meaning of service exports and imports.

Give meaning of direct exporting.

Give meaning of direct importing.

Give meaning of contract manufacturing.

Give meaning of licensing and franchising.

Define foreign investment.

Give meaning of joint venture.

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