The-definition.com

Definition

Direct investment

Direct investment refers to enter a foreign market by developing foreign-based assembly  or manufacturing facilities and it is the biggest involvement in a foreign market comes through direct investment. For example, HP has made direct investments in several major markets abroad, including India. It has opened two factories that make PCs for the Indian market, along with HP-owned retail outlets in 150 Indian cities. Thanks to such commitments, HP is a market leader in India and now controls more than 16 percent of the market in India.

Share it:  Cite

More from this Section

  • Internet business models
    Internet business models is a subset of e- business models that uses the internet to add ...
  • Capital items
    Capital items are industrial products that aid in the buyer’s production or operations, ...
  • Influencers
    Influencers refer to the people in an organization’s buying center who affect the buying ...
  • Segmentation base
    The individual or group characteristics that marketing managers use to divide a total ...
  • Points-of-parity (POPs)
    Points-of-parity (POPs) are attributes or benefit associations that are not necessarily ...