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:

Third-party Logistics Firm

A business that provides outsourced logistics services covering warehousing, transportation, and distribution for other companies.

Supply Management

The process of managing and optimizing the sourcing, procurement, and logistical activities required to obtain products, services, and materials needed by a company.

Organizational Purchasing

The systematic process by which companies buy goods and services they need to operate, considering factors like price, quality, and delivery times.

Closed-loop Supply Chains

Supply chains designed to integrate forward logistics with the reverse logistics process, enabling recycling, refurbishment, or disposal of products.