The purchase or building by a corporation of a facility in a foreign country is called
A)foreign direct investment.
B)foreign portfolio investment.
C)foreign capital depreciation.
D)globally-directed investment.
E)international capital acquisition.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to a corporation's purchase or establishment of a facility in a foreign country, typically with the intention of expanding its reach and increasing its profits. Foreign portfolio investment, on the other hand, involves investing in foreign stocks, bonds, or other financial instruments. Foreign capital depreciation and internationally-directed investment are not widely used terms in this context, and international capital acquisition is too broad to accurately describe the specific act of building or purchasing a facility.

The Purchase or Building by a Corporation of a Facility