Which of the following is true about foreign direct investment?
A)It is a means of reducing transportation costs.
B)Since the 1980's foreign direct investment has been relatively stable worldwide.
C)Only very large corporations are undertaking foreign direct investment.
D)Foreign direct investment refers only to the amount of money U.S.corporations put into non-U.S.businesses.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) can be used to establish production facilities closer to markets, thus reducing transportation costs.

Answer: B
 Since the 1980s, global FDI has grown significantly, with periods of fluctuations due to economic and political trends.

Answer: None of the above
 C is incorrect because smaller corporations can also engage in FDI. D is incorrect because FDI can refer to any foreign entity investing in another country, not just U.S. corporations.

Which of the Following Is True About Foreign Direct Investment