The following activities are FDI except _________.
A) Wal-Mart set up a sourcing and distribution center in China.
B) Whirlpool built a refrigerator plant in Mexico.
C) Google acquired the majority shares of an Indian search website.
D) Fidelity Insurance purchased bonds issued by Airbus, a European company.

Question

Quizplus · Accepted Answer

Fidelity Insurance purchasing bonds issued by Airbus is not a Foreign Direct Investment (FDI) as it does not involve acquiring ownership or control in a foreign company through the purchase of equity. Choices A, B, and C involve setting up operations, building a plant or acquiring majority shares in a foreign company, which are all examples of FDI.

The Following Activities Are FDI Except _________