Wholly Owned Subsidiary Pros and Cons

Acquisition leading to monopoly, loss of sovereignty, overuse of natural resources

Knowledge transfer, repatriation of profits, increased exports

Government insurance programs, loans, relaxation of host countries' restrictions

<p>Low interest loans, subsidies, tax breaks</p> Signup and view all the answers

<p>Complex administrative policies, local content requirements, forced entry strategies</p> Signup and view all the answers

<p>Less risk of losing control over technology, tightly control operations in countries, 100% of profits</p> Signup and view all the answers

<p>When entering a market with well-established companies and when global competitors are also interested in establishing a presence</p> Signup and view all the answers

<p>Slower to establish, riskier than acquisition, no competitors to acquire</p> Signup and view all the answers

<p>More competition leading to better quality, more choices, job creation, transfer of knowledge</p> Signup and view all the answers

<p>Paying more than a company's actual worth, integration challenges, unforeseen roadblocks</p> Signup and view all the answers