Foreign Direct Investment (FDI) involves ______.
A) buying shares in foreign companies listed on a stock exchange
B) investment by a company based in one country in a company based in another country
C) cross-border trade relations through exports and/or licensing agreements
D) the exploitation of less developed countries by Western firms

Question

Quizplus · Accepted Answer

Foreign Direct Investment (FDI) involves investment by a company based in one country in a company based in another country. This can include acquisitions, mergers, or setting up new subsidiaries or joint ventures. It is different from buying shares in foreign companies listed on a stock exchange, cross-border trade relations through exports and/or licensing agreements, and the exploitation of less developed countries by Western firms.

Foreign Direct Investment (FDI) Involves ______