The __________ is able to exercise full control over its operations in foreign countries.

venture firm

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parent firm

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capital firm

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profitable firm

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Solution

The correct option is A parent firm
The parent firm is able to exercise full control over its operations in foreign countries as the parent firm invests 100% equity capital into its foreign operating firms.

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What makes it possible to exercise partial control over price? Why is full control over price not possible?

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