Which of the Following Best Describes Foreign Direct Investment (FDI)

question 49

Multiple Choice

Which of the following best describes foreign direct investment (FDI) ?

• A)A firm's direct investment in production and/or service activities abroad.
• B)The purchases of foreign securities by people within the United States.
• C) The purchases of U. S. securities by people from other countries.
• D) Avoidance of brokers or other financial intermediaries when making foreign investments.

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Definitions:

Marginal Enterprises

Businesses operating at the minimum level of profitability necessary to sustain operations.

Merchandise

Goods or products that are bought and sold in the course of business.

Production Plant

A facility where raw materials are transformed into finished goods through various processes and machinery.

Free Internet Service

Internet access provided at no cost to the user, often with certain limitations or supported by advertisements.