When Firms from One Country Make Investments in Another, It

question 51

Multiple Choice

When firms from one country make investments in another, it is known as __________.

• A) direct foreign investment (DFI)
• B) direct licensing (DL)
• C) foreign direct investment (FDI)
• D) investment transfer authorization (ITA)

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Definitions:

Financial Disclosures

Information provided by a company that illustrates its financial performance and position, often found in annual reports and required by regulatory bodies.

Proxy Contest

A challenge to the management of a corporation, typically initiated by a shareholder group to win control of the board of directors.

Acceptable Levels

Standards or thresholds deemed suitable for a specific context, such as risk tolerance in investment or quality in manufacturing.

Dissident Shareholders

Shareholders who disagree with the company management's policies or decisions, often attempting to prompt change within the company.