Your krebstar running shoes were designed in the united states but assembled by a subsidiary company in asia. krebstar is most likely a:______

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22-07-2022
Social Studies

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Your krebstar running shoes were designed in the united states but assembled by a subsidiary company in asia. krebstar is most likely a:______

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MubeenaD MubeenaD · Answer 1 · 2022-07-30T14:58:50+02:00

Your krebstar running shoes were designed in the united states but assembled by a subsidiary company in asia. krebstar is most likely a multinational corporation.

An asset of the multinational corporation is a subsidiary. The parent corporation often controls the business operations and investments of this smaller company. In certain cases, the parent firm holds the majority of the stock in the subsidiary and has only limited authority over it beyond marketing and financial arrangements. A multinational can have its headquarters anywhere, but the most majority are in the United States, Western Europe, or Japan. N ike, To yota, and B MW are a few instances.

They frequently have subsidiaries in less developed countries where labour expenses and production costs may be lower. Subsidiaries are mostly created for economic reasons. Tax incentives are one type of incentive that a nation may provide to a multinational. To help the company create the subsidiary, the nation might give a cheaper rate or a period of time without paying national taxes.

Corporations may also establish subsidiaries merely to conduct business in a different nation or with the express intent of reducing their liabilities in connection with a novel product. Due to the legal separation between the parent and subsidiary, neither party is responsible for the other's activities. Not entirely protected is the parent firm. If a subsidiary defaults on its responsibilities or is unable to do so, creditors may bring a claim against the parent.

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