Foreign direct investment means that a firm is:
A)investing assets into a foreign country's share market.
B)investing assets directly into a foreign country's organizations.
C)loaning out interest free sums to a foreign country for infrastructural development.
D)investing government funds to accelerate urban development of a foreign country.
E)allowing its foreign competitors to make use of its infrastructural facilities.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) refers to an investment made by a firm or individual in one country into business interests located in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company. This directly involves investing assets into organizations of the foreign country rather than just participating in the foreign stock markets or engaging in other indirect forms of investments.

Foreign Direct Investment Means That a Firm Is