Question

Starbucks is opening a location in China every 15 hours, and just opened its largest location in Shanghai. Which method of international expansion is Starbucks utilizing?

1) Franchising
2) Licensing
3) Joint Venture
4) Direct Investment

Answer 1

Starbucks is utilizing Direct Investment as its method of international expansion in China.

Step-by-step explanation:

The method of international expansion that Starbucks is utilizing in China is Direct Investment.

Direct Investment involves a company setting up and operating its own facilities in a foreign country, rather than partnering with or franchising to local businesses.

In this case, Starbucks is opening its own locations in China, including its largest location in Shanghai. This allows Starbucks to retain full control over its operations and brand image in the Chinese market.