Lanco Inc., located in Canada, bought the Australian mining company Griffin Coal and now runs a 100-percent owned mining entity in Australia.This venture has allowed Lanco complete control over the local market.This strategy is an example of:

Question

Quizplus · Accepted Answer

Direct investment involves buying a company or establishing a wholly-owned subsidiary in a foreign market, which is exactly what Lanco Inc. did when they bought Griffin Coal in Australia. This gives Lanco complete control over the local market, as stated in the question. Strategic alliance, exporting, franchising, and joint ventures do not involve complete ownership and control of a foreign entity.

Lanco Inc, Located in Canada, Bought the Australian Mining Company Griffin