For foreign direct investment (FDI)to occur,a firm should primarily
A)conduct cross-border bartering with neighboring countries.
B)invest resources in business activities outside its home country.
C)export goods or services to consumers in another country.
D)import goods or services from producers in another country.
E)erect formidable barriers to international trade.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) refers to the investment in business activities outside a firm's home country. Therefore, the primary requirement for FDI to occur is for the firm to invest its resources in other countries. Cross-border bartering, exporting goods or services, importing goods or services, and erecting barriers to international trade do not necessarily involve the investment of resources in foreign business activities, and therefore, do not necessarily result in FDI.

For Foreign Direct Investment (FDI)to Occur,a Firm Should Primarily