Which of the following is an example of direct foreign investment?
A) exporting to a country.
B) establishing licensing arrangements in a country.
C) purchasing existing companies in a country.
D) investing directly (without brokers) in foreign stocks.

Question

Quizplus · Accepted Answer

Direct foreign investment involves purchasing existing companies in a foreign country. Options A and B refer to indirect methods of foreign investment, while option D refers to portfolio investment.

Which of the Following Is an Example of Direct Foreign