Honda, a Japanese firm, builds a factory in Alabama to make minivans to be marketed in the United States. Which of the following strategies of entering into a foreign market is best represented by this example?

Question

Quizplus · Accepted Answer

Honda building a factory in Alabama for manufacturing minivans represents International Direct Investment. This is because the company is directly investing in facilities to produce goods within a foreign country, rather than entering the market through partnerships, licensing, or other indirect methods.

Honda, a Japanese Firm, Builds a Factory in Alabama to Make