Multiple Choice QuestionWhen Lowe's builds its home improvement stores in Australia and other countries, this level of international business is called ______.Multiple choice question.contract manufacturingoutsourcingdirect investmentexporting
Question
Multiple Choice QuestionWhen Lowe's builds its home improvement stores in Australia and other countries, this level of international business is called ______.Multiple choice question.contract manufacturingoutsourcingdirect investmentexporting
Solution
The correct answer is "direct investment". When a company like Lowe's builds its stores in other countries, it is directly investing in those countries by creating physical assets such as buildings and infrastructure. This is different from contract manufacturing and outsourcing, where the company would be hiring foreign firms to produce goods or provide services. Exporting, on the other hand, would involve selling goods produced in the home country to foreign markets.
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