Joint venture vs wholly owned subsidiary essay
With a subsidiary, the parent company takes over the shares, making them the majority shareholders. In a wholly owned subsidiary, the parent company owns a percentage of the shares. DOI: 10.1287 ofsc.13.6.667. ID: 44863727 The choice between joint venture and wholly owned subsidiary: an institutional perspective article Yiu2002TheCB, title The choice between joint venture and wholly owned subsidiary: an institutional perspective author Daphne W. Yiu and Shige Makino, The study of Foreign entry-mode choice is virtually based solely on transaction cost theory. This theory focuses primarily on the impact of firm- and industry-specific factors on entry mode choice, with the effects of country-specific contextual factors considered constant or less important. Order a custom essay Essay On Wholly Owned Subsidiary with free plagiarism report. A joint venture is defined as shared ownership of a foreign company and can fall under one of four business arrangements. First, a business entity formed by an international company and local owners. Second, a business entity,