starbucks wants more control and is willing to invest considerable resources in international business, so it decides to open coffee shops in a foreign country developing and operating the new locations. this is known as

Respuesta :

The actions of Starbucks are known as Foreign Direct Investment

When a company wants to expand to a foreign country, it can do so by:

  • Licensing
  • Franchising
  • Foreign Direct Investment

Foreign Direct Investment offers the company the most control over the companies they establish because it involves starting a company from scratch or purchasing it and owning the majority of it.

Because Starbucks will be opening coffee shops in foreign companies and wants more control, it will be operating a Foreign Direct Investment scheme with the shops.

In conclusion, Starbucks is operating the new shops under Foreign Direct Investment.

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