Direct investment means:
A) buying or creating facilities in another country for producing in local markets.
B) buying or creating facilities in home country.
C) buying facilities based in home country for the purpose of exporting products.
D) buying facilities in home country for the sole purpose of importing essential goods.

Question

Quizplus · Accepted Answer

Direct investment refers to the purchase or creation of facilities in a foreign country for the purpose of producing goods that can be sold in the local market. This type of investment is typically long-term and involves significant capital investment, such as building a manufacturing plant or purchasing a company in the foreign country. Therefore, option A is the best choice as it correctly defines direct investment. The other options do not accurately describe direct investment.

Direct Investment Means