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If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

a.

foreign direct investment.
b.

foreign financial investment
c.

foreign portfolio investment.
d.

indirect foreign investment.

1 answer

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

a. foreign direct investment.

Foreign direct investment (FDI) involves a company investing directly in facilities to produce or market a product in a foreign country, which fits this scenario perfectly.

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