Question

Foreign direct investment means that a firm is: 1. investing assets directly into a foreign country’s...

Foreign direct investment means that a firm is:

1. investing assets directly into a foreign country’s organizations.

2. investing assets into a foreign country’s share market.

3. investing government funds to accelerate urban development of a foreign country.

4. allowing its foreign competitors to make use of its infrastructural facilities.

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Answer #1

Foreign direct investment is defined as investment from one party in one country into a business or corporation in another country.

Thus the first option is the foreign direct investment.

When a foreign investor makes investment in the asset or stock market is known as foreign portfolio investment.

Option 1.

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