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Question
Which of the following is an advantage of wholly owned subsidiaries as a mode of entry into foreign markets?
A. A foreign firm is relieved of many of the costs and risks associated with opening a foreign market on its own.
B. The risk of losing control over a firm's technological competence is reduced.
C. A foreign firm is insulated completely from the threat posed by high transport costs.
D. It is the most politically acceptable mode of entry into foreign markets.
E. It helps create competition which in turn increases the quality of production.
Answer
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