Which of the following is an example of direct foreign investment?
A)exporting to a country
B)establishing licensing arrangements in a country
C)purchasing existing companies in a country
D)investing directly (without brokers) in foreign stocks

Question

Quizplus · Accepted Answer

Purchasing existing companies in a country is an example of direct foreign investment, as it involves physically acquiring assets and control of a foreign company. Exporting and establishing licensing arrangements are forms of indirect foreign investment, while investing in foreign stocks is a form of portfolio investment.

Which of the Following Is an Example of Direct Foreign