As Strategies for Going International, How Do Foreign Direct Investment

question 37

Essay

As strategies for going international, how do foreign direct investment and opening a foreign subsidiary differ from licensing?

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Definitions:

Import

The process of importing products or services from foreign countries for the purpose of selling them domestically.

Domestic

Pertaining to or occurring within a country’s borders, often in reference to products produced, services rendered, or economic activities.

Produce

To create, manufacture, or grow goods and services for sale or consumption.

Import Quotas

Limits set by a government on the amount or value of goods that can be imported into a country.