Question

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

Answer 1

The correct answer is C) supports direct control over all aspects of operating in a foreign market.

Step-by-step explanation:

Undoubtedly, the creation of new subsidiary companies must consider economic dependence on an international conglomerate, which means that in order to homogenize all processes (including the value chain) it is really important to establish direct control over all operations. . This situation also occurs when an existing company is acquired and it is required to take advantage of belonging to the same group of companies.