The investing of resources in business activities outside a firm's home country is referred to as:
A)international trade.
B)domestic direct investment.
C)transnational barter.
D)foreign direct investment.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to investing resources in business activities outside a firm's home country, which usually involves a higher level of ownership and control than what is achieved through international trade. Option A, international trade, refers to the exchange of goods and services across national borders, but may not involve actual investment in foreign operations. Option B, domestic direct investment, refers to investing resources within a firm's home country. Option C, transnational barter, is not a commonly used term in international business and does not accurately describe foreign investment activities.

The Investing of Resources in Business Activities Outside a Firm's