Question

Direct investment in as a global market-entry strategy refers to a. having a company handle its own exports directly, without intermediaries. b. a domestic firm actually investing in and owning a foreign subsidiary or division. c. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or a fee. d. a foreign company and a local firm investing together to create a local business.

Answer 1

Answer:

The correct answer is letter "B": a domestic firm actually investing in and owning a foreign subsidiary or division.

Explanation:

There are several ways a firm can enter into a foreign market. Companies can achieve that by exporting, licensing or franchising, engaging in a joint venture, making a direct investment or using trade intermediaries.  

If the organization decides to make a direct investment, it implies being in charge of all the activities of the company abroad through wholly-owned subsidiaries. While it allows the company to take control over the operations of the firm wherever it is they decide to invest, costs are higher and the company must diversify its labor hand by hiring specialists in each different market -to help the organization understand more about regulations, for instance.

Answer 2

The complete question is:

Direct investment in as a global market-entry strategy refers to a. having a company handle its own exports directly, without intermediaries. b. a domestic firm actually investing in and owning a foreign subsidiary or division. c. offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or a fee. d. a foreign company and a local firm investing together to create a local business.

e. a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division

Answer:

e. a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division.

Explanation:

Direct investment is also called foreign direct investment. Investors directly fund a company that is in another country with the intention of gaining market share and operating there in the long term. It involves purchases of land, building a, equipment, and factories outside one's country.

Usually direct investment involves provision of capital funding to a company in exchange for the companie's equity.

Direct investment could involve a company opening operations in a foreign country, or getting equity on an already existing business.