Bardron, an information technology company in the country of Conimount, wanted to start its business in the country of Bertholt. Hence, it bought Lecden Corp, a severely underperforming information technology company in the country of Bertholt. This scenario is an example of _____.
A) strategic alliance
B) direct foreign investment
C) direct export
D) joint venture

Question

Quizplus · Accepted Answer

Bardron's purchase of Lecden Corp in a foreign country constitutes direct foreign investment, as the company is investing in and establishing a presence in a foreign market through the acquisition of an existing company.

Bardron, an Information Technology Company in the Country of Conimount