When Honda, a Japanese auto maker, built a factory in Ohio,
A)it was engaged in foreign direct investment.
B)it was engaged in portfolio investment.
C)it was engaged in a cross-border acquisition.
D)none of the above.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to when a company invests in and manages operations in a foreign country. In this case, Honda, a Japanese company, built a factory in Ohio, which means it was directly investing in a foreign country - the United States. Therefore, option A is the best choice.

When Honda, a Japanese Auto Maker, Built a Factory in Ohio