Which one of the following modes of entry permits greatest degree of control over operations?

Licensing / Franchising

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Wholly owned subsidiary

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Contract manufacturing

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Joint venture

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Solution

The correct option is B Wholly owned subsidiary
A wholly owned subsidiary is a company where 100% of the share capital is invested by the parent company or the holding company. This kind of mode gives total control in the hands of the holding company. The holding company gets full authority to decide whether to start new operations or to procure an existing company doing business overseas in order to establish the subsidiary company.

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Similar questions

Which one of the following modes of entry permits greatest degree of control over overseas operations?

(a) Licensing/franchising

(b) Wholly owned subsidiary

(d) Joint venture

Which one of the following modes of entry permits greatest degree of control over overseas opeartions?

Which one of the following modes of entry requires higher level of risks?

(a) Licensing

(b) Franchising

(d) Joint venture

Which one of the following modes of entry brings the firm closer to international markets?

(a) Licensing

(b) Franchising

(d) Joint venture

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