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 is the global market entry strategy in which a company establishes its own subsidiary or division in a foreign country, representing the highest level of commitment. Nestlé's establishment of an ice cream manufacturing operation in China falls under this category. The other options - licensing, local assembly, joint venture, and local manufacturing - involve varying degrees of collaboration with local partners and do not involve the same level of financial and operational investment as direct investment.

Nestlé Actually Owns a Subsidiary or Division in a Foreign