If an American-based firm opens and operates a factory in China,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

Foreign direct investment involves a company making a direct investment in a foreign country, such as opening a factory. This is different from foreign portfolio investment or foreign financial investment, which involve investing in stocks or financial assets in a foreign country. Indirect foreign investment typically involves investing in a company that has operations in a foreign country, rather than directly investing in the foreign country itself. Therefore, the correct choice is C)foreign direct investment.

If an American-Based Firm Opens and Operates a Factory in China,then