Q.When an MNC sets up a company in the host country and holds full (100%) ownership of its share capital, this mode of entry is called a:

Each mode of MNC entry differs mainly in how much ownership/control the MNC keeps for itself versus shares with or hands to a local party. …

A Wholly Owned Subsidiary is a company set up by the MNC in the host country in which the MNC holds all (or almost all) of the share capital, giving it complete ownership and control. This is different from a Joint Venture (ownership shared with a local partner), Franchising (a local franchisee runs the business under the MNC's brand/format for a fee), and Licensing (a local licensee manufactures under the MNC's p …

Confusing a Wholly Owned Subsidiary with a Joint Venture — the deciding factor is whether ownership is 100% with the MNC (subs …