Final answer:
The business practice described in the student's question, where Hoover invested in a manufacturing plant in Mumbai and received products to sell globally, is known as a joint venture.
Step-by-step explanation:
The practice where Hoover invested funds to provide technology and equipment in a new manufacturing plant in Mumbai and received vacuums that were produced in India to be sold worldwide is called a joint venture. This type of international cooperation between companies from different countries involves sharing resources, risks, and rewards in the creation of a new business entity or project. It's a common strategy for companies looking to expand their manufacturing capabilities in a global market while taking advantage of lower production costs and accessing new markets.
In the example provided, many clothing corporations shut down their U.S. factories and relocated to China in an effort to reduce costs and increase profitability; this is a form of offshoring. Moreover, global partnering, countertrade, and dumping are other international business practices, but they do not describe the relationship between Hoover and the India-based firm, where the mutual benefits and shared investments are highlighted in a joint venture.