An example of foreign direct investment would be Pepsi granting a Japanese firm the use of its formula and trademark,for a fee.
Licensing allows one firm to manufacture another firm's product and use their trademark for a fee.Foreign Direct Investment involves the purchase of property in a foreign country.

Question

Quizplus · Accepted Answer

The given example is actually about licensing, not foreign direct investment. Foreign direct investment involves the ownership or control of a business or property in a foreign country by a foreign entity.

An Example of Foreign Direct Investment Would Be Pepsi Granting