The purchase of physical assets or a significant amount of ownership of a company in another country to gain a measure of management control is called ________.
A)portfolio investment
B)foreign direct investment
C)horizontal integration
D)vertical integration

Question

Quizplus · Accepted Answer

Foreign direct investment involves the purchase of physical assets or a significant amount of ownership in a company in another country in order to gain management control. Portfolio investment, on the other hand, involves investing in a range of securities for the purpose of diversification. Horizontal integration involves merging with or acquiring a competitor in the same industry, while vertical integration involves acquiring a company that is involved in a different stage of the same production process.

The Purchase of Physical Assets or a Significant Amount of Ownership