Which of the Following Is a Form of Foreign Direct

question 83

Multiple Choice

Which of the following is a form of foreign direct investment?

• A) An investor enters into a licensing agreement with a foreign government.
• B) A company purchases a warehouse outside the sovereign borders of its parent country.
• C) A company enters into an international franchise agreement.
• D) A company enters into a joint venture with a government agency in the host country.

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Definitions:

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Migration

The movement of persons from one country or locality to another for the purpose of employment, better living conditions, or other reasons.

Country B

A hypothetical or specific reference to a nation identified as "B" for analysis or discussion purposes.