GK
MARKETING MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The host country encourages FDI
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Firm is looking for short term profits
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Firm has just started selling in the host country
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Firm wants to take full control over production and promotion in the target market
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Detailed explanation-1: -Acquiring a wholly-owned subsidiary can be a relatively cost-efficient way for a company to expand its product line or its geographic reach. It may acquire a competitor, thus expanding its own market share, or invest in a part of its own supply chain, making its production process more efficient.
Detailed explanation-2: -5. Wholly-owned subsidiary through greenfield venture. This entry mode means the firm owns 100% of the overseas entity, and your company will enter the new international market by establishing a completely new operation and legal entity.
Detailed explanation-3: -To keep full control over their venture, this method of international business is incorporated by organizations. The parent organization makes 100% investment in its equity capital and in this way takes full control over the foreign organization.
Detailed explanation-4: -Review your company. Take a careful look at your business to make sure you’re ready to expand internationally. Develop a market entry strategy. The next step is to develop a market entry strategy. Prepare and execute an export marketing plan.