Question

Lochmonden already has a company registered under the name of CreateOne. The Aldemeren company with the same brand name was not able to enter Lochmonden market. Hence, the Aldemeren CreateOne had to start a new company in the name of OneCreate to enter the market in Lochmonden. This scenario is an example of _____A) strategic allianceB) direct foreign investmentC) direct exportD) joint venture

Answer 1

This scenario is an example of B) direct foreign investment

Step-by-step explanation:

Direct foreign investment is a kind of investment which is made by one company in another company which is based in a different country. This investment is controlled and is made directly to the foreign account.

In above question, Aldemeren company needed to enter the Lochmonden market for which they had to create a different company so the transaction of products and services can be smoother and business activities could be held without any complexity.