Question

Th.e key. advantage of. establishing. a new fully owned subsidiary in. a foreign market is___ while,....

Th.e key. advantage of. establishing. a new fully owned subsidiary in. a foreign market is___ while,. major drawback is____

Homework Answers

Answer #1

First blank - that it provides access to the new markets

You are establishing a new fully owned subsidiary in a foreign market refers to expanding your business. Through expansion, you can access the new customers and new market.

Second blank - that establishing subsidiary is expensive

Firm has to spend a large amount of money on setting up a new subsidiary at a new location. They are costlier than franchising.

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