Foreign direct investment would occur if Mobile Inc.of the United States acquired sufficient common stock in a foreign oil company to assume voting control.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) occurs when a company invests directly in facilities to produce or market a product in a foreign country. Acquiring sufficient common stock to assume voting control of a foreign company qualifies as FDI because it represents a long-term interest and significant influence over the management of the foreign entity.

Foreign Direct Investment Would Occur If Mobile Inc