Question

A form of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service, is a __________.
A. licensor.
B. joint venture.
C.foreign subsidiary.
D. host company.

Answer 1

Answer:

c. foreign subsidiary

Explanation:

Foreign subsidiary -

It refers to a company which is partially or completely , part of some large firm , whose main office is located in some other country , is referred to as a foreign subsidiary .

It is a form of foreign direct investment method , where a company purchases any other company , where the company supposed to manufacture , sell or produce the same type of goods and services .

Hence, from the given information of the question,

The correct option is c. foreign subsidiary .