Which of the following is an example of foreign direct investment?

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) occurs when a company or individual from one country makes an investment into a business within another country with the intention of establishing a lasting interest. This often involves purchasing a company, expanding operations of an existing business, or investing in new facilities in the foreign country. Option C, where a Canadian firm purchases a majority stake in a Japanese company, is a direct example of FDI because it involves acquiring a controlling interest in a business in another country, thereby establishing a lasting interest and influence in that company's operations.

Which of the Following Is an Example of Foreign Direct