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When a Multinational Purchases 20 Percent Shares of a Company

Question 29

Multiple Choice

When a multinational purchases 20 percent shares of a company overseas


A) it can be classified as an FDI even if it has no controlling interest
B) it can be classified as an FDI only if it has a controlling interest
C) it can be classified as a portfolio investment if it has a controlling interest
D) it cannot be classified as a FDI since it does not own 100 percent of the shares
E it cannot be classified as a portfolio investment because it does not own 100 percent of the shares

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