Which of the following statements is true of foreign direct investment? a. It is the act of buying an ownership stake within a country that provides capital.

b. It is the process of investing in, controlling, and managing value-added activities in other countries.

c. It is the process of tracking an index or measuring of a foreign market.

d. It is the act of investing in a foreign-owned company within a country.

Question

Business

Bunky

13 November, 18:37

Which of the following statements is true of foreign direct investment? a. It is the act of buying an ownership stake within a country that provides capital.

b. It is the process of investing in, controlling, and managing value-added activities in other countries.

c. It is the process of tracking an index or measuring of a foreign market.

d. It is the act of investing in a foreign-owned company within a country.

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Answers (1)

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Sophie Villarreal · Answer 1

Answer: Option B

Explanation: Foreign direct investment can be defined as a situation in which a company invest in a country other than its home country. In such a case, the company starts a new setup in the new country with the same business operation.

For example an automobile company of Germany opening their car showrooms in america.

Thus, from the above we can conclude that the correct option is B.