The CFO of At Home Products is unhappy with the firm's choice of wholly owned subsidiaries as the mode of foreign entry. He has pointed out a number of disadvantages to this mode. Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?
A. lack of control over quality
B. high costs and risks
C. problems with local marketing agents
D. inability to engage in global strategic coordination
E. lack of control over technology
Answer: B. high costs and risks