All of the following statements are true of FDI EXCEPT:
A) it is the financial process by which a corporation takes partial or total control of foreign assets.
B) it is measured as the dollar value of funds invested by a parent corporation.
C) it is a short-term investment that can be sold anytime.
D) it is almost always made by transnational corporations.

Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) is a long-term investment made by a corporation to take partial or total control of foreign assets. It is measured as the dollar value of funds invested by a parent corporation, and it is typically made by transnational corporations. However, FDI is not a short-term investment that can be sold anytime, which contradicts option C.

All of the Following Statements Are True of FDI EXCEPT