Which of the following is the best example of foreign direct investment that would involve the Honda Corporation, which has its headquarters in Tokyo, Japan?
A) building a manufacturing plant in Canada
B) investing in the Japanese automotive market
C) building a manufacturing plant in Japan
D) licensing the Honda trademark in promotional advertising in Germany

Question

Quizplus · Accepted Answer

Building a manufacturing plant in Canada by the Honda Corporation, which is headquartered in Tokyo, Japan, is an example of foreign direct investment because it involves the company investing in physical assets in another country, thereby establishing business operations or acquiring business assets in that foreign country.

Which of the Following Is the Best Example of Foreign