Which of the following best describes foreign direct investment (FDI)?
A) A firm's direct investment in production and/or service activities abroad.
B) The purchase of foreign securities by people from outside of the country.
C) Investment into any firm by someone who is not resident in the country.
D) Avoidance of brokers or other financial intermediaries when making foreign investments.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) refers to a firm's direct investment in production and/or service activities abroad. This can include setting up a subsidiary or acquiring a stake in a foreign company. FDI is characterized by ownership and management control by the investing firm, as opposed to portfolio investments where the investor does not have such control.

Which of the Following Best Describes Foreign Direct Investment (FDI)