For Foreign Direct Investment to Occur, the Purchase Has to Be

question 66

Multiple Choice

For foreign direct investment to occur, the purchase has to be more than

• A) 2 percent but less than 5 percent of shares in a business located abroad.
• B) 5 percent but less than 10 percent of shares in a business located abroad.
• C) 8 percent but less than 10 percent of shares in a business located abroad.
• D) 10 percent of shares in a business located abroad.

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Definitions:

Illegal Purpose

Refers to the intention of engaging in activities that violate laws or regulations.

Agency Relationship

A legal arrangement in which one party, the agent, is authorized to act on behalf of another, the principal, in conducting business transactions.

Oral Agreement

A verbal contract between parties that is legally binding in certain contexts, though more difficult to prove than written ones.

Language Barrier

A challenge in communication between people who do not share a common language.