A company in another country that is owned by a U.S. company would be an example of a foreign subsidiary.
A foreign subsidiary is a company which is operating overseas, also which is part of a larger corporation with its headquarters situated in another country, often known as a parent company.
Before setting up a foreign subsidiary, a legal entity is established in another country. Legal entities can market their products and services to the local population. They can also import and export goods and increase sales and profits.
Thus, a foreign subsidiary is established by a parent company outside its country of origin.
Hence, option C is correct.
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