Hutlot Corp., a clothing company in the country of Pretnola, bought a small clothing company named Midlews in the country of Limlouth. Hutlot is going to sell its own designs through Midlews, and it believes that this venture will be extremely successful. This scenario is an example of _____.

Question

Quizplus · Accepted Answer

This scenario is an example of direct foreign investment, as Hutlot Corp. has purchased a company in another country to expand its business operations there.