Aldhurst Corp., a software manufacturing firm in the country of Lochmount, bought Fairden Corp., a software manufacturing firm 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 (DFI), as Aldhurst Corp. has bought a software manufacturing firm in a foreign country, Vertholt. DFI refers to companies investing in and owning a foreign subsidiary or facility, allowing for more control and involvement in the foreign market.