This document discusses wholly owned subsidiaries and their use as an international entry strategy. A wholly owned subsidiary is a company that is 100% owned by another parent company. Establishing a wholly owned subsidiary provides the parent company with operational and strategic control over the subsidiary. Some advantages include establishing common processes, protecting intellectual property, cost synergies through shared systems and services, and controlling subsidiary assets. However, establishing a subsidiary is expensive, acquiring an existing company risks overpaying, and cultural integration can be difficult. Examples of wholly owned subsidiaries include Volkswagen Group of America to Volkswagen AG and Marvel Entertainment to The Walt Disney Company.