Question

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.

Answer 1

Answer:

foreign direct investment

Explanation:

Foreign direct investment  (FDI) refers to a company from country A investing in another country B, either by setting up their own business operations or acquiring a domestic firm. FDI requires that the new company in country B is controlled and managed by the investor form country A.