Which of the following is an advantage of direct investment?

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High control over operations is a significant advantage of direct investment. When a company opts for direct investment, it establishes a physical presence in a foreign market, such as through building its own facility or acquiring a local business. This ownership allows the company to maintain complete oversight of its operations, making it easier to implement its corporate strategies, uphold its standards of quality, and ensure that the brand's values are preserved.

This level of control can be vital for maintaining competitive advantages in branding, product consistency, and customer service. Unlike franchising or partnerships where a local franchisee or partner may have different priorities or operational standards, direct investment allows the company to streamline processes and align them with its global business goals. Thus, the ability to control operations extensively is a key benefit of direct investment, ensuring that the company's vision is consistently realized in the international market.

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