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.

Question

Quizplus · Accepted Answer

Direct foreign investment refers to a company investing in physical assets or subsidiary businesses in a foreign country. Mazda building a plant in China to produce vehicles is an example of direct foreign investment, as they are investing in the physical assets required to manufacture their products overseas.

The Japanese Automobile Manufacturer Mazda Produces the Premacy SUV in Haikou