Which entry mode of international business is preferred by companies that want to exercise full control over their overseas operations?

Wholly Owned Subsidiaries

The correct answer is option 4- Wholly Owned Subsidiaries.

Wholly Owned Subsidiaries, entry mode of international business is preferred by companies which want to exercise full control over their overseas operations. The parent company acquires full control over the foreign company by making 100 per cent investment in its equity capital. A wholly owned subsidiary in a foreign market can be established in either of the two ways:

(i) Setting up a new firm altogether to start operations in a foreign country — also referred to as a green field venture, or

(ii) Acquiring an established firm in the foreign country and using that firm to manufacture and/or promote its products in the host nation.