Foreign direct investment implies that the investor obtains ________ share in a foreign company's ownership.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) refers to an investment made by a company or individual in a foreign country. FDI can take different forms, including mergers and acquisitions, joint ventures, and greenfield investments. While FDI often involves acquiring a substantial share of a foreign company's ownership, there is no specific percentage threshold that defines FDI. Some investments that involve less than 1 percent or 5 percent of a foreign company's ownership could still qualify as FDI, depending on the nature of the investment and the investor's objectives. Therefore, none of the options given in the question accurately defines the share of ownership required for an investment to qualify as FDI.

Foreign Direct Investment Implies That the Investor Obtains ________ Share