The transfer of capital, managerial, and technical assets by a multinational firm from its home country to a foreign country is termed ________.
A) an MNC
B) an SDI
C) an FDI
D) a CAPM

Question

Quizplus · Accepted Answer

FDI, or foreign direct investment, refers to the transfer of capital, managerial, and technical assets by a multinational firm from its home country to a foreign country. An MNC, or multinational corporation, refers to a corporation that has operations in multiple countries. An SDI, or strategic direct investment, is not a commonly used term in international business. CAPM, or Capital Asset Pricing Model, is a financial model used to determine the expected return on an investment based on its level of risk. It is not directly related to the transfer of assets by multinational firms. Therefore, the best choice is C) an FDI.

The Transfer of Capital, Managerial, and Technical Assets by a Multinational