BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Choose the right one (or more than one) Methods to conduct international business
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Licensing
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Franchising
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Existing operations
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DFI
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Domestic trade
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Explanation:
Detailed explanation-1: -There are four major modes through which firms undertake foreign direct investment (FDI): merger and acquisition (M&A), joint venture, new plant, and others.
Detailed explanation-2: -Foreign direct investments are commonly categorized as horizontal, vertical, or conglomerate. With a horizontal FDI, a company establishes the same type of business operation in a foreign country as it operates in its home country. A U.S.-based cellphone provider buying a chain of phone stores in China is an example.
Detailed explanation-3: -Accordingly, FDI is driven by four main factors: (i) markets; (ii) assets; (iii) natural resources; and (iv) efficiency seeking.
There is 1 question to complete.