Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?
A) A franchise
B) An independent agency
C) A licensing arrangement
D) A foreign direct investment
E) A strategic alliance

Question

Quizplus · Accepted Answer

This is an example of foreign direct investment, as Ford has acquired a controlling interest in Volvo and has become the owner of the company rather than simply forming a strategic alliance or licensing arrangement.

Ford,an American Car Company,purchased Volvo,which Is Based in Sweden