A Major Disadvantage of Operating a Wholly Owned Subsidiary Is

Multiple Choice

A major disadvantage of operating a wholly owned subsidiary is that

A) a loss of control over technology is likely to occur.
B) a wholly owned subsidiary offers too much flexibility over operations.
C) high costs and risk are associated with this type of operation.
D) overseas consumers are often resentful of foreigners.
E) host countries can impose higher tariffs on the firm.