This is the financial process by which a corporation takes partial or total control of foreign assets with the intention of having a long-term presence.
A) TPI
B) Indirect investment
C) Portfolio investment
D) FDI

Question

Quizplus · Accepted Answer

FDI stands for Foreign Direct Investment, which is the process of a corporation taking partial or total control of foreign assets with the intention of having a long-term presence. FDI differs from portfolio investment (choice C) in that FDI involves a direct investment in a foreign company or asset, whereas portfolio investment involves investing in a variety of assets (e.g. stocks, bonds) without taking direct control of any specific company. Indirect investment (choice B) refers to investing in assets via an intermediary, such as a mutual fund or exchange-traded fund. TPI (choice A) is not a commonly used term in finance and does not relate to the given scenario.

This Is the Financial Process by Which a Corporation Takes