If TransCanada Pipelines,a Canadian based corporation,purchased a 50% interest in a company in Italy,that purchase would be an example of
A) multinational investment.
B) reciprocal foreign investment.
C) foreign direct investment.
D) cross-boarder international investment.
E) foreign joint venture

Question

Quizplus · Accepted Answer

This is an example of foreign direct investment (FDI) because TransCanada Pipelines is purchasing a significant ownership stake (50%) in a company in a foreign country (Italy). FDI involves a company investing in and managing operations in a foreign country, often to expand its business and access new markets. The other options do not accurately describe this type of investment.

If TransCanada Pipelines,a Canadian Based Corporation,purchased a 50% Interest in a Company