Once a firm undertakes FDI, it becomes a _________.
A) portfolio investor
B) multinational corporation
C) foreign firm
D) investment enterprise

Question

Quizplus · Accepted Answer

FDI stands for Foreign Direct Investment and refers to a firm investing in and managing operations in another country. Once a firm undertakes FDI, it becomes a multinational corporation, as it is operating in multiple countries and managing resources across borders. A portfolio investor is someone who invests in stocks, bonds, and other financial assets but does not have management control over the operations. A foreign firm is a company that operates in a country other than its home country, which could include firms that have not undertaken FDI. An investment enterprise is a general term that could refer to any type of business that makes investments.

Once a Firm Undertakes FDI, It Becomes a _________