Although Inco is a Canadian company,it has invested substantial business resources in activities outside Canada.This practice is referred to as:
A) transnational commerce
B) foreign direct investment
C) international trade
D) organizational diversification
E) outsourcing

Question

Quizplus · Accepted Answer

Foreign direct investment refers to a company investing its resources in activities outside the country where it is based. This is the most appropriate choice as the question specifically mentions Inco investing outside Canada. Transnational commerce refers to the exchange of goods and services between multiple countries, which may or may not involve direct investment. International trade is a broader term that encompasses both imports and exports, but does not necessarily involve investment. Organizational diversification refers to a company expanding its business activities into different areas or sectors, which may or may not involve international activities. Outsourcing refers to a company contracting out work to external providers, which is a different concept than investing or conducting business activities outside the country.

Although Inco Is a Canadian Company,it Has Invested Substantial Business