NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. NaviC

Question

3 years ago

14

NaviCal Inc., a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. NaviC

al had high financial growth, and it wants to purchase the manufacturing facility. This market entry method is called ________.
A. strategic alliance
B. direct foreign investment
C. licensing
D. joint venture
E. franchising

Business

1 answer:

uranmaximum [27] · Answer 1 · 2022-04-25T12:00:53+03:00

Answer:

The correct answer is letter "B": direct foreign investment.

Explanation:

Direct foreign investment is a cross-border form of investment aimed at creating lasting interest in an enterprise operating in another country. The lasting interest requires a significant degree of influence in the management of the company and the creation of a stable partnership between the direct investor and the direct investment business.