Gem Globe,an American company,has invested substantial capital in precious stones mining activities outside the United States.This practice is referred to as:
A) unrelated diversification.
B) foreign direct investment.
C) cross-border bartering.
D) organizational divestment.
E) international cartel.

Question

Quizplus · Accepted Answer

Gem Globe's investment in precious stones mining activities outside the United States is an example of foreign direct investment, which involves a company investing capital in a foreign location with the intent of controlling or managing a business enterprise there.

Gem Globe,an American Company,has Invested Substantial Capital in Precious Stones