The final decision in the foreign direct investment decision is whether to:
A)Acquire a foreign enterprise or build a firm from the ground up
B)Enter into a joint venture or a wholly owned affiliate
C)License or control assets abroad
D)Stay in the domestic market or enter the foreign market
E)Export or produce abroad

Question

Quizplus · Accepted Answer

The decision between acquiring a foreign enterprise or building a firm from the ground up depends on various factors such as the company's objectives, financial resources, and the regulatory environment of the foreign country. Acquiring an existing enterprise can provide a quicker entry into the foreign market, established customer base, and established supply chain. Building a firm from the ground up can give the company more control over operations and the ability to tailor products and services to the local market. Ultimately, the best choice depends on the specific circumstances of the company and the foreign market they are entering.

The Final Decision in the Foreign Direct Investment Decision Is