Which of the following would NOT be considered an example of foreign direct investment (FDI)?
A) cross-border purchase of a textile plant
B) cross-border purchase of stocks
C) purchase of capital assets of a foreign company
D) purchase of foreign land for business operations

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) involves controlling ownership or management stakes in a business, such as purchasing a plant, capital assets, or land for operations. Buying stocks, unless it confers significant control or influence, is generally considered portfolio investment, not FDI.

Which of the Following Would NOT Be Considered an Example