If an American-based firm opens and operates a service call center in Bulgaria, then it is engaging in
A)foreign portfolio investment.
B)foreign financial investment.
C)foreign direct investment.
D)indirect foreign investment.

Question

Quizplus · Accepted Answer

Opening and operating a service call center in Bulgaria involves foreign direct investment, as it involves establishing a physical presence and direct ownership and control of operations in another country. Foreign portfolio investment refers to investing in stocks, bonds, or other financial assets of a foreign company without direct control or management. Foreign financial investment is a broad term that can refer to both portfolio investment and direct investment, but it does not specify the type of investment being made. Indirect foreign investment typically involves investing in a local company that has significant foreign ownership or exposure.

If an American-Based Firm Opens and Operates a Service Call