A Canadian cement manufacturing firm decides to invest in China.To gain more profits the company decides to invest independently in the new market by setting up its own plants and distributing its products through its own sales force.This type of entry strategy is known as:

Question

Quizplus · Accepted Answer

The entry strategy described in the scenario is direct investment where the Canadian cement manufacturing firm is setting up its own plants and distributing its products through its own sales force in China. This is the most involved and high-risk type of entry strategy, but also offers the potential for the highest return on investment. It is not a strategic alliance, exporting, joint venture, or franchising.

A Canadian Cement Manufacturing Firm Decides to Invest in China