Oldhust Corp., an electronics company in the country of Bigmount, bought Specden Corp., an electronics company in the country of Vertholt. This scenario is an example of _____.
A) strategic alliance
B) direct foreign investment
C) direct export
D) joint venture

Question

Quizplus · Accepted Answer

This scenario is an example of direct foreign investment, as Oldhust Corp. is investing in and acquiring Specden Corp. in a foreign country (Vertholt). Strategic alliance would involve two companies partnering together for a specific purpose, joint venture would involve two companies forming a new entity together, and direct export would involve Oldhust Corp. simply selling its products to Vertholt without any ownership or investment in a company there.