Explain the differences between global sourcing, strategic alliance, and foreign subsidiary. Solution company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company or holding company. A subsidiary is a company that is partly or completely owned by another company that holds a controlling interest in the subsidiary company. If a parent company owns a foreign subsidiary, the company under which the subsidiary is incorporated must follow the laws of the country where the subsidiary operates, and the parent company still carries the foreign subsidiary\'s financials on its books (consolidated financial statements). For the purposes of liability, taxation and regulation, subsidiaries are distinct legal entities. .

1. Explain the differences between global sourcing, strategic alliance, and foreign subsidiary.
Solution
company whose voting stock is more than 50% controlled by another company, usually referred
to as the parent company or holding company. A subsidiary is a company that is partly or
completely owned by another company that holds a controlling interest in the subsidiary
company. If a parent company owns a foreign subsidiary, the company under which the
subsidiary is incorporated must follow the laws of the country where the subsidiary operates, and
the parent company still carries the foreign subsidiary's financials on its books (consolidated
financial statements). For the purposes of liability, taxation and regulation, subsidiaries are
distinct legal entities.