The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province

Question

2 years ago

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The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province

. Mazda is using _____ to engage in global trading. Group of answer choices cooperative cartel limited partnership international corporation direct foreign investment international cooperative

Business

1 answer:

Nonamiya [84] · Answer 1 · 2023-09-02T20:44:31+03:00

foreign direct investment

<h2>What is foreign direct investment?</h2>

A corporation from nation A will invest in country B by starting their own commercial activities there or by buying a local company. This practice is known as foreign direct investment (FDI). The new company in country B must be controlled and managed by the investor from nation A in order to qualify for FDI.
The investment could entail purchasing a material supply, growing a business's reach, or establishing a global presence.
By 2020, the United States will trail China in terms of FDI attraction.

<h2>Why do companies engage in foreign direct investment?</h2>

Avoid trade restrictions. National protectionism still appears occasionally despite the increased prevalence of free trade.
Lower the cost of production. Companies increasingly use foreign direct investment to lower production costs.

<h3>Examples of Foreign Direct Investments</h3>

Mergers, acquisitions, or joint ventures in the retail, service, logistics, or manufacturing sectors may be part of foreign direct investments. They point to a global business expansion plan.

learn more about characteristics of foreign direct investment at

brainly.com/question/27540611?referrer=searchResults

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