The computer maker lenovo started in china but has since expanded its operations. in addition to purchasing ibm’s pc division and motorola handset business unit, it established parallel headquarters in both beijing and north carolina. this is an example of which global entry strategy?

Direct Investment

Explanation:

"Multinational organizations may choose to engage in full-scale production and marketing abroad by directly investing in wholly-owned subsidiaries. As opposed to the previously mentioned methods of entry, this type of entry results in a company directly owning manufacturing or marketing subsidiaries overseas. This enables firms to compete more aggressively abroad, because they are literally “in” the marketplace."

Reference: Learning, Lumen. “Principles of Marketing.” Lumen, 2019

This is a form of Direct Investment

The purpose of direct investment is to gain enough control of a company to exercise control over future decisions. This can be achieved by acquiring a significant majority or minority stake. Direct investment can involve management participation, joint ventures or sharing of technology and skills.

investment is investing money or capital in a company or project for the purpose of making a profit. Investment can be interpreted as the expenditure of investors or companies to purchase capital goods or production equipment to increase the ability to produce goods and services available in the economy. expenditure can be said as an investment if it can be aimed at increasing production capability.

Direct Investment is the purchase or acquisition of majority shares in a foreign business in another way compared to the direct purchase of shares. This also means that in the area of domestic finance, the purchase or acquisition of majority shares or smaller interests that will still allow the company's active control. There are three types of foreign direct investment: direct foreign investment in, foreign direct investment out, and "stock of foreign direct investment", which is the cumulative amount in a period. Direct investment does not include investment through the purchase of shares

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Investment :

Details

Class : high school

Subject : social studies

Keywords : investment, direct investment, purchase, project

IPS

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