Foreign Direct Investment (FDI) Refers To

question 42

Multiple Choice

Foreign Direct Investment (FDI) refers to:

• A)the flow of funding provided by an investor or lender to establish or acquire a foreign company or to expand or finance an existing foreign company that the investor owns and controls.
• B)the hot money that an investor needs to get registered in a foreign stock exchange to make investments, and have the liberty to sell and take back the stocks purchased earlier.
• C)a method of funding business adopted by a foreign investor by participating directly in the secondary markets of a country, through investments in the country's stocks or bonds.
• D)the passive holding of securities such as foreign stocks, bonds, or other financial assets, none of which entails active management or control of the securities issued by the investor.