Forrest & Barnes, a pharmaceutical company in the United States, builds a research and development facility in Japan. This helps the company make the best use of the efficient labor and technology available in Japan. Which of the following international business strategies does Forrest & Barnes most likely use?

Question

Quizplus · Accepted Answer

Building a research and development facility in another country constitutes direct foreign investment, as the company is investing in physical assets abroad to take advantage of local resources, such as labor and technology.

Forrest & Barnes, a Pharmaceutical Company in the United States