Question

Savvy Skin Care, a U.S.-based beauty products manufacturer, has set up a manufacturing plant in Hong Kong. This is an example of_________.

a.global rivalry.
b.the globalization of markets.
c.exporting.
d.foreign direct investment.
e.international trade.

Answer 1

Answer:

Foreign Direct Investment

Explanation:

If Savvy Skin Care, is a U.S.-based beauty products manufacturer and has set up a manufacturing plant in Hong Kong. This is an example of Foreign Direct Investment.

Foreign Direct Investment (FDI) is when an a firm or individual in one country makes investment into business interests in another country.

In the scenario above, Savvy Skin Care is a firm in the U.S. but is making investments in pursuit of business in another country. This is an exact example of Foreign Direct Investments