DepDevs, an investment company in the country of Onimount, has purchased several small companies in Primelom, a third world country. DepDevs plans to revive these companies by investing their funds in them and improving their performances in the market. This scenario is an example of _____.
A) strategic alliance
B) direct foreign investment
C) direct export
D) joint venture

Question

Quizplus · Accepted Answer

The scenario describes DepDevs purchasing small companies in a foreign country with the intention of improving their performance, which fits the definition of direct foreign investment. Strategic alliance involves a partnership between two or more companies, joint venture involves two or more companies forming a new entity, and direct export involves selling goods directly to a foreign market. None of these accurately describe the scenario presented.

DepDevs, an Investment Company in the Country of Onimount, Has