A form of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service, is a
A) licensor.
B) joint venture.
C) foreign subsidiary.
D) host company.

Question

Quizplus · Accepted Answer

When a domestic company purchases a company in a foreign country to produce a similar product or service, it creates a foreign subsidiary. This is a form of foreign direct investment where the parent company has full control over the subsidiary's operations.

A Form of Foreign Direct Investment, Where a Domestic Company