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.

---

Definitions:

Partners

Individuals or entities who share ownership and responsibilities in managing a business or specific venture.

Income

Payments that are regularly collected from employment activities or the investment of funds.

Public Entertainment

Activities designed for the enjoyment of the public, often provided by the government or community organizations, such as concerts or parades.

Dominant Strategy

A strategy in game theory that is the best for a player, regardless of what strategies other players follow.