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

Question

Quizplus · Accepted Answer

Foreign direct investment is a means of investing in and managing production facilities in a foreign country to reduce transportation costs in export sales. This allows companies to be closer to their customers and reduce the costs associated with transporting goods across borders.

Which of the Following Is True About Foreign Direct Investment