Question

The form of international expansion which gives an organization high potential return because the organization does not have to share its profits with a foreign organization, and it reduces the level of risk because the organization's managers have full control over all aspects of their foreign company's operations, is ________.

Answer 1

The answer is wholly owned foreign subsidiary.

There are several ways a multinational corporation can expand their businesses overseas.

Some examples include a joint-venture which is an example of a strategic alliance where two or more enterprises collaborate to undertake a commercial activity.

In wholly owned foreign subsidiary, however, the enterprise involved is only the one who wishes to expand their businesses overseas, and there is no local company involved.