Question

question 3
2.67 pts
kia, a korean firm, builds a factory in tennessee to manufacture compact sedans for the united states market. which of the following strategies of entering into a foreign market is best represented by this example?
international direct investment
subcontracting
franchising
licensing

Explanation:

International direct investment involves a firm establishing a physical presence (like a factory) in a foreign country. Here, Kia (a Korean firm) building a factory in Tennessee (a foreign location for Kia) to manufacture for the US market fits this. Subcontracting involves giving work to another firm. Franchising is a business model where one party (franchisor) allows another (franchisee) to use its brand etc. Licensing is about giving rights (like to use a patent) to another. Since Kia is directly building and operating a factory in a foreign land, it's international direct investment.

Answer:

International direct investment