A pharmaceutical company headquartered in a country constructs a research lab in another country in order to make the best use of the efficient labor and technology available there.This is an example of:
A) exporting.
B) a strategic alliance.
C) a joint venture.
D) direct foreign investment.
E) licensing.

Question

Quizplus · Accepted Answer

This is an example of direct foreign investment, where a company invests directly in a foreign country by setting up a subsidiary or purchasing a company in that country. In this case, the pharmaceutical company is constructing a research lab in a foreign country to take advantage of its efficient labor and technology.

A Pharmaceutical Company Headquartered in a Country Constructs a Research