2- What is the main disadvantage of wholly owned subsidiaries? a) They make it difficult...
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Accounting
2- What is the main disadvantage of wholly owned subsidiaries?
a) They make it difficult to realize location and experience curve economies
b) The firm bears the full cost and risk of setting up overseas operations
c) They may inhibit the firm's ability to take profits out of one country to support competitive attacks in another
d) High transport costs and tariffs can make it uneconomical
3- If a firm wants the option of global strategic coordination, the firm should choose
a) Franchising b) Joint ventures
c) Licensing d) A wholly owned subsidiary
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