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Unformatted text preview: could outweigh the disadvantages associated with Licensing. The best choice is the one with the highest risk. A wholly owned subsidiary is when a firm owns 100 percent of the stock. Establishing a wholly owned subsidiary can happen in two ways. One is the firm sets up a new operation in another country, and the other is a firm purchasing an already established company in the foreign country. This disadvantage of this option is the high risk and high cost. Like in most situations the advantages could outweigh the disadvantages. In this situation, I believe the advantages do. The advantages are the protection of technology, the ability to engage in global strategic coordination, and the ability to realize location and experience economies (Hill, 2010). References: Hill, C. W. (2010). International Business. Competing the global marketplace (Laureate Education Inc Custome edition ed.). New York: McGraw - Hill....
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- Spring '11