Which of the following is an example of direct foreign investment for a U.S.-based MNC?
A) exporting to a country
B) licensing arrangements that will allow a foreign country to use the MNC's technology
C) purchasing existing companies in a country
D) investing directly (without brokers) in foreign stocks

Question

Quizplus · Accepted Answer

Purchasing existing companies in a foreign country is considered direct foreign investment, as the MNC is directly acquiring ownership and control of assets in another country.

Which of the Following Is an Example of Direct Foreign