Asked by Alicia Ebding on May 16, 2024
Verified
What is the best description of the direct investment global entry strategy?
A) With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country.
B) Direct investment occurs when a firm enters a new market by pooling its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.
C) Direct investment refers to depositing payroll funds in a foreign bank.
D) Direct investment designates the maximum quantity of a product that may be brought into a country during a specified time period.
E) Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.
Direct Investment
Putting money into a business venture, property, or other investments in a foreign country, aiming for a controlling interest.
Ownership
The state or condition of legally possessing an object, property, or enterprise.
- Distinguish and appraise diverse strategies for entering global markets, focusing on their risk and control aspects.
Verified Answer
KA
Kristen AndersonMay 23, 2024
Final Answer :
A
Explanation :
Direct investment global entry strategy refers to a situation where a firm maintains total ownership and control over its operations, plants, and offices in a foreign country. This usually involves investing in facilities and infrastructure to establish a physical presence in the foreign market.
Learning Objectives
- Distinguish and appraise diverse strategies for entering global markets, focusing on their risk and control aspects.