When a firm owns physical assets in another country, this is called foreign direct investment.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) occurs when a company or individual from one country invests in physical assets, such as factories or real estate, in another country. This is different from portfolio investment, which involves buying stocks or bonds in a foreign company but does not result in ownership of physical assets.

When a Firm Owns Physical Assets in Another Country, This