An American firm decides to build another manufacturing plant in Poland to handle the demand for its products in that country. This is an example of
A) a strategic alliance.
B) a direct investment.
C) a joint venture.
D) licensing.
E) exporting.

Question

Quizplus · Accepted Answer

This is an example of a direct investment. Direct investments may involve the development and operation of new facilities or the purchase of all or part of an existing operation in a foreign company.

An American Firm Decides to Build Another Manufacturing Plant in Poland