Foreign direct investment is when:
A)a firm runs part of its operation abroad or invests in another company abroad.
B)investors buy foreign financial assets like stocks,bonds,or government securities.
C)investment is funded by foreign sources but operated domestically.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to when a company invests in and manages operations in another country. This can include opening a new branch, acquiring a company, or investing in a joint venture. It is different from buying foreign financial assets (B) or receiving foreign investment for domestic operations (C). Option D is incorrect as A is true.

Foreign Direct Investment Is When