The computer maker Lenovo started in China but has since expanded its operations. In addition to purchasing IBM's PC division and Motorola handset business unit, it established parallel headquarters in both Beijing and North Carolina. This is an example of which global entry strategy?

Question

Social Studies

Nikolas Sparks

25 January, 13:23

The computer maker Lenovo started in China but has since expanded its operations. In addition to purchasing IBM's PC division and Motorola handset business unit, it established parallel headquarters in both Beijing and North Carolina. This is an example of which global entry strategy?

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Answers (1)

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Aria Ellison · Answer 1

Direct Investment

Explanation:

"Multinational organizations may choose to engage in full-scale production and marketing abroad by directly investing in wholly-owned subsidiaries. As opposed to the previously mentioned methods of entry, this type of entry results in a company directly owning manufacturing or marketing subsidiaries overseas. This enables firms to compete more aggressively abroad, because they are literally "in" the marketplace."

Reference: Learning, Lumen. "Principles of Marketing." Lumen, 2019