Which of the following does not constitute a form of direct foreign investment?
A)franchising
B)international trade
C)joint ventures
D)acquisitions of existing operations
E)establishment of new foreign subsidiaries

Question

Which of the following does not constitute a form of direct foreign investment?​
A)franchising
B)international trade
C)joint ventures
D)acquisitions of existing operations
E)establishment of new foreign subsidiaries

Quizplus · Accepted Answer

International trade involves the exchange of goods and services between countries, but it does not involve direct investment in foreign operations. Rather, it is a form of indirect foreign investment. Franchising, joint ventures, acquisitions of existing operations, and establishment of new foreign subsidiaries are all forms of direct foreign investment.

Which of the Following Does Not Constitute a Form of Direct