Internationalization occurs through two mechanisms:
A)Direct investment and trade
B)Trade and financial flows
C)Production and consumption
D)Joint ventures and industry mergers

Question

Quizplus · Accepted Answer

Direct investment and trade are the two main mechanisms through which internationalization occurs. Direct investment involves companies setting up subsidiaries or acquiring existing companies in foreign countries, while trade refers to the exchange of goods and services between countries. These two mechanisms are essential for companies to expand their operations and target new markets internationally. Financial flows, production, consumption, joint ventures, and industry mergers may also play a role in internationalization, but they are not the primary mechanisms.

Internationalization Occurs Through Two Mechanisms