Kraft purchased all of the common stock of Cadbury PLC. This is an example of ________.
A) foreign portfolio investment
B) foreign direct investment
C) international expansion
D) global licensing

Question

Quizplus · Accepted Answer

When a company purchases all of the common stock of another company, it is making a foreign direct investment (FDI). This involves obtaining a lasting interest and control in a foreign enterprise, as opposed to simply buying securities of a foreign company, which would be considered foreign portfolio investment.

Kraft Purchased All of the Common Stock of Cadbury PLC