FID which means investment in manufacturing and service facilities in a foreign country with an intention to engage actively in managing them—is another facet of the increasing integration of national economies. (Kotabe Helsen)
The biggest investment in foreign market is direct investment, as the company investment the new manufacture in the foreign country to develop their local product and easy to control the price come from the raw material details. Such as HP make the direct investment in some majored market around the world, including India. (Kotler and Armstrong). Generally the foreign direct investment can help the company developing deeper relationship with government, customers and local supplier, at the same time improved their image in the target country because they create jobs. Also the foreign direct investment have the disadvantages like government changing , falling markets, frankly speaking the company have no chose but can build the effective operations to accept this.
This first Coca-Cola bottling manufacture factory was established in Beijing in 1981, to got the benefits from direct investment, until now there are 35 bottling company and 29 manufacture factory for coca-cola products in china, more than 30,000 people working in coca-cola,99% stuff are Chinese local .
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