The firm that engages in foreign direct investment is a:
A) Global firm
B) Multinational enterprise
C) International enterprise
D) Foreign direct investor

Question

Quizplus · Accepted Answer

A multinational enterprise (MNE) is a firm that engages in foreign direct investment, meaning it has significant ownership control over operations in one or more foreign countries. While a global firm may have global operations, it does not necessarily engage in foreign direct investment. An international enterprise may operate in multiple countries but does not necessarily have significant ownership control over operations in those countries. "Foreign direct investor" is not a commonly used term to describe a firm. Multinational enterprises are firms that engage in foreign direct investment. They operate in multiple countries and have ownership and control over their foreign affiliates. The other options are not accurate descriptions of firms that engage in foreign direct investment.

The Firm That Engages in Foreign Direct Investment Is A