Honda's construction of automobile assembly plants in the United States is an example of foreign _____ for Honda Corporation.
A) direct investment
B) franchising
C) importing
D) licensing

Question

Quizplus · Accepted Answer

Honda's construction of automobile assembly plants in the United States involves investing directly in the creation and operation of the plants, which is an example of foreign direct investment. Franchising, importing, and licensing do not involve building physical facilities and investing in the creation of new operations, but rather involve existing businesses or products being utilized or sold in a foreign market.

Honda's Construction of Automobile Assembly Plants in the United States