A wholly owned subsidiary in a foreign market can be established in how many ways?

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A 2
A wholly owned subsidiary can be established in two ways. A company can become a wholly owned subsidiary through an acquisition by the parent company or having been spun off from the parent company.

Suggest Corrections

Similar questions

Q. venture is a form of market entry strategy with the establishment of a new wholly owned subsidiary in a foreign country.

One of the ways of establishing a wholly owned subsidiary is acquiring an established firm in the foreign country and using that firm to manufacture or promote its products. In March 2008, Tata Motors acquired Jaguar Land Rover, making it a wholly owned subsidiary of Tata.

Q. The Small Industries Development Bank of India was established as a wholly owned subsidiary of _____.

Wholly Owned Subsidiaries is a form of foreign direct investment.

Which of the follwoing statement(s) about green field venture is/are correct?

1. Amazon India is a green field venture.

2. Greenfield Venture is a form of market entry strategy with establishment of a new wholly owned subsidiary in a foreign country by constructing its facilities from start.

Join BYJU'S Learning Program

A wholly owned subsidiary in a foreign market can be established in how many ways?

The correct option is A 2A wholly owned subsidiary can be established in two ways. A company can become a wholly owned subsidiary through an acquisition by the parent company or having been spun off from the parent company.

The correct option is A 2
A wholly owned subsidiary can be established in two ways. A company can become a wholly owned subsidiary through an acquisition by the parent company or having been spun off from the parent company.