When Nestlé actually owns a subsidiary or division in a foreign country,such as when it established its own ice cream manufacturing operation in China,this global market entry strategy is known as __________ and represents the greatest commitment a company can make.
A)licensing
B)local assembly
C)a joint venture
D)direct investment
E)local manufacturing

Question

Quizplus · Accepted Answer

Direct investment involves a company establishing its own subsidiary or division in a foreign country, which is the case with Nestlé establishing its own ice cream manufacturing operation in China. This strategy represents the largest commitment a company can make, as it involves significant investment and risk. The other options of licensing, local assembly, joint venture, and local manufacturing involve lesser degrees of ownership and control.

When Nestlé Actually Owns a Subsidiary or Division in a Foreign