The ownership and control of foreign assets, such as a manufacturing plant, is called:
A) a hedge.
B) foreign direct investment.
C) an option.
D) derivatives.

Question

Quizplus · Accepted Answer

Foreign direct investment refers to ownership and control of foreign assets, such as a manufacturing plant. A hedge is a risk management strategy that involves taking an offsetting position in a related security, while an option is a financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset. Derivatives are financial instruments that derive their value from an underlying asset.

The Ownership and Control of Foreign Assets, Such as a Manufacturing