When firms invest in manufacturing and distribution facilities outside their home countries to expand into new markets around the world, they have added operational capacity to the stock of _________________________________.

Question

Quizplus · Accepted Answer

When firms invest in manufacturing and distribution facilities outside their home countries, it is referred to as foreign direct investment (FDI). This is because the investment is made directly into the business interests in another country, rather than through indirect means such as buying stocks or bonds.

When Firms Invest in Manufacturing and Distribution Facilities Outside Their