ABC, Inc. wants to expand into the Central American market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. ABC will likely use ________ to expand into the Mexican market.

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21-07-2022
Business

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ABC, Inc. wants to expand into the Central American market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. ABC will likely use ________ to expand into the Mexican market.

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tutorconsortium341 tutorconsortium341 · Answer 1 · 2022-08-03T20:29:07+02:00

ABC, Inc. wants to expand into the Central American market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. ABC will likely use foreign direct investment (FDI) to expand into the Mexican market.

What is Foreign Direct Investment?

A foreign direct investment (FDI) occurs when a business or investor from outside the country buys a stake in the company.
The phrase typically refers to a commercial decision to buy a sizable portion of a foreign company or to buy it altogether in order to expand its operations to a new area. It is uncommon to use it to refer to a stock investment in an international business.
Companies that are thinking about making a foreign direct investment often only examine open economies with trained labor and above-average growth potential for the investor. The value of minimal government regulation is also common.
FDI typically includes non-capital investments as well. It might also entail the provision of management, technology, and tools.

To learn more about foreign direct investment (FDI) with the given link https://brainly.com/question/13526780

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