Which of the following terms best describes foreign direct investment?
A) Directly investing in, controlling, and managing value-added activities in other countries.
B) Directly investing in, controlling, and managing value-added activities in other markets.
C) Directly investing in shares of multinational enterprise.
D) All of these answers

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) refers to investing in, controlling, and managing value-added activities in foreign countries. This can include establishing operations, acquiring assets, and managing those assets in a foreign country. Option B refers to other markets, which may or may not be in other countries, and option C refers to investing in shares of multinational enterprises, which is different from direct investment in foreign operations. Therefore, option A is the best choice to describe FDI. Foreign direct investment (FDI) refers to the investment made by a company or individual in the form of direct ownership of businesses or assets in a foreign country. It involves directly investing in, controlling, and managing value-added activities in other countries. Option A best describes FDI activities, while options B and C do not accurately capture all aspects of FDI. Therefore, Option A is the best choice for this question.

Which of the Following Terms Best Describes Foreign Direct Investment