Foreign direct investment (FDI) occurs
A)when an investor acquires a measure of control of a foreign business.
B)when there is an acquisition, by a foreign entity in the U.S., of 10 percent or more of the voting shares of a business.
C)with sales and purchases of foreign stocks and bonds that do not involve a transfer of control.
D)both a and b

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) happens when an investor gains a degree of influence over a foreign enterprise, which is option A. Additionally, an acquisition by a foreign entity in the United States of 10% or more of a business's voting shares is also considered an FDI, making option B also accurate. As a result, both option A and B are valid, making option D the best option. Choice C is not correct since it refers to the purchase and sale of foreign securities that do not result in the transfer of control, which is known as portfolio investment, rather than FDI.

Foreign Direct Investment (FDI) Occurs