Korea's Samsung invested about $500 million to build television tube plants in Tijuana, Mexico. This form of international business is aptly named international licensing.

Question

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The case of Samsung is an example of direct foreign investment. In this type of investment, companies may invest locally to capitalize on low cost labor, to avoid high import taxes, to reduce the high costs of transportation to market, to gain access to raw materials and technology, or as a means of gaining market entry.

Korea's Samsung Invested About $500 Million to Build Television Tube