The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province. Mazda is using _____ to engage in global trading. Group of answer choices cooperative cartel limited partnership international corporation direct foreign investment international cooperative

A corporation from nation A will invest in country B by starting their own commercial activities there or by buying a local company. This practice is known as foreign direct investment (FDI). The new company in country B must be controlled and managed by the investor from nation A in order to qualify for FDI.
The investment could entail purchasing a material supply, growing a business's reach, or establishing a global presence.
By 2020, the United States will trail China in terms of FDI attraction.

Why do companies engage in foreign direct investment?

Avoid trade restrictions. National protectionism still appears occasionally despite the increased prevalence of free trade.
Lower the cost of production. Companies increasingly use foreign direct investment to lower production costs.

Mergers, acquisitions, or joint ventures in the retail, service, logistics, or manufacturing sectors may be part of foreign direct investments. They point to a global business expansion plan.

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