When firms invest in manufacturing and distribution facilities outside their home countries, they add the stock of _________________________________.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) refers to when a firm invests in manufacturing and distribution facilities outside their home country. FDI adds to the stock of capital in the foreign country and represents a long-term commitment to the host country's economy.

When Firms Invest in Manufacturing and Distribution Facilities Outside Their