Question

PreFab, a clothing company is selling its goods in the country of Irmana. The clothing is manufactured in PreFab's home country and a tax is levied on it by the government of Irmana. This form of business is an example of _______.A) direct foreign investment

B) exporting
C) licensing
D) protectionism

Answer 1

Answer: Exporting.

Step-by-step explanation:

PreFab is engaged in exportation of their clothing line from their country where it is produced to Irmana where it is used. Exportation is the process of sending products made in a country to another country where it is consumed. In exportation taxes are paid in the form of duties.