As a firm increases its FDI,it may do what?
A)Export.
B)Franchise.
C)Form a strategic alliance.
D)Establish a foreign subsidiary.

Question

Quizplus · Accepted Answer

As a firm increases its FDI, the most likely choice is to establish a foreign subsidiary, which involves setting up a wholly-owned business in a foreign country. This allows the firm to have complete control over its operations in the foreign market and to take advantage of local resources and business opportunities. Exporting, franchising, and forming strategic alliances are other ways to expand globally, but as a firm's FDI increases, these options may become less attractive or feasible for achieving the desired level of control and integration in the foreign market.

As a Firm Increases Its FDI,it May Do What