Question

Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________. a. minimum global investment b. making products domestically and selling them abroad c. Jose's company giving the foreign subsidiary the right to use its brand name d. directly investing in a foreign country

Answer 1

Answer:

d. directly investing in a foreign country

Explanation:

A subsidiary is a firm that is wholly or partially owned by another bigger corporation. A foreign subsidiary is a business owned by another company whose headquarters are in a different country. The foreign subsidiary is formed and managed as per the laws of the country in which it operates.

A corporation establishing a foreign subsidiary will be directly investing in another country. Foreign direct investment is an investment performed by an entity in one country into business interests located in another country. Jose's company will acquire a business, and its assets be located in a foreign country.