Josh runs a maple syrup business in Vermont and decides to hire two people in India to maintain his company's bookkeeping electronically. Josh's hiring decision is an example of:
A) foreign portfolio investment.
B) foreign direct investment.
C) foreign import investment.
D) foreign export investment.

Question

Quizplus · Accepted Answer

Josh's hiring decision to maintain his company's bookkeeping in India is an example of foreign direct investment (FDI) as he is investing in a foreign country to control and manage his business operations. Foreign portfolio investment involves investing in foreign financial assets such as stocks and bonds, whereas foreign import and export investment involve the exchange of goods and services across national borders.

Josh Runs a Maple Syrup Business in Vermont and Decides